Make More Money In Real EstateThere are literally 100s of creative ways to make money in real estate. Real estate investing stretches from raw land that can subdivided to large commercial properties run by property managers. It can also involve just owning the mineral rights to drill for oil, natural gas or other highly profitable minerals. The only limit to make money in real estate is your imagination.
A good strategy to make money in real estate is to gradually increase the number of units you control.
Below Are Ten Ways You Can Make Money In Real Estate
- Duplexes, triplexes, and fourplexes. These are a natural progression from single-family houses. They offer a decent opportunity to finance your investments. As long as the building has less than four units, it's considered a residential property. Anything over five units is considered commercial and the lending rules change significantly.
- Small to medium apartment buildings. These are between 5 and 50 rental units. The advantage here is strong cash flow. It's a great way to make money in real estate.
- Mobile home parks. These can be inexpensive to invest in and offer tremendous cash flow. You can buy individual units inside a park or buy the entire park. Of course, the entire park is much more expensive. However, beginning with individual units can start as low as $4,000 for an older unit.
- Recreational vehicle parks. Not only can this be a very good way to make money in real estate but it offers a laid-back lifestyle when you manage the property. Most of the people you are dealing with are on vacation or retired. They aren't getting stressed out over the small stuff.
Commercial Opportunities to Make Money in Real Estate
- Commercial real estate investing is more complicated but there is also more money to be made in every deal. You too can make money in real estate by investing in commercial properties.
- Motels and hotels. These are a great way to make money in real estate when they are located in tourist areas or where business people frequently travel.
- Small commercial properties. A good starting point to make money in real estate here are small strip malls and small office buildings. Your tenants will be long term.
- Industrial properties. These can be manufacturing sites, warehouses, or distribution centers. Typically, the tenant is responsible for most maintenance and repairs.
- NNN leases. These tend to be larger businesses and the tenant a large stable company that doesn't want to own the building for tax purposes. They lease for 30 years at a time and are fully responsible all expenses including insurance and property taxes.
- New commercial construction. This can be a highly profitable way to make money in real estate. However, it takes serious knowledge of the industry and strong financial backing. You need to be able to forecast what type of building will be needed a year or more from now, along with where to best build it. You're also going to have a lot of permitting issues and other governmental regulations. This one is not for the beginner or feint of heart.
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