Real estate market helps the investors to earn profit in several ways. DC Fawcett, the founder of virtual real estate investing club has stated his reviews on how to earn profit. Let’s have a look at it.
Inflation in value
The property is considered to be an asset, it can appreciate in its value only if it is sold or refinanced. Refinancing can be calculated using mortgage.
Purchasing a raw land and constructing buildings on it. If the land possesses mineral content, it adds value to the land.
Location and furnishing
The location is one of the striking factors; the property value depends on the area in which you purchase the property. So having a land in the heart of the city with all basic facilities in the surrounding will attract the buyers. The value can be further increased if your property is renovated and furnished at proper intervals.
Commercial investment and lease
Investing on commercial property fetches more profit than any other type of investment. Many startups and organizations are in need of space, giving out for lease will gain you profit steadily.
Types of income
Renting is the easiest way to gain profit but you can be a way ahead by splitting the apartment into different rooms which can fetch you more rent.
REIT AND MIC
REIT and MIC are firms which owns, manage and represent real estate market. REIT provide source of income to commercial property owners whereas MIC acts as the source of funding for mortgage.
Under market value
Investing in properties having under market value can earn you good gains in addition to that if you possess negotiation skills.
House flipping may either hit or flop , refer DC Fawcett blog to know more about house flipping strategies on virtual wholesaling.
Fore closured areas
Lenders may sell the non-performing notes (fore closured properties) to investors at discount rate, but it involves lot of risk. You can proceed if you are confident in paying the debt, title fee etc and make the property free from fore closure which the borrower failed to.
Find an undervalued home under contract; assign a buyer who has to find another buyer who is willing to pay more than the (undervalued) price which is almost similar to the job of a real estate agent.
Real estate brokerage
This is for real estate agents who want to level up in his career. You can become a broker and appoint few agents under you in which half of the commission is all yours. You can also run property Management Company, buying a vacation property, becoming a home inspector, investing in short sales.
In the process of earning profit, you should be cautious about the
scams that are happening. Before investing in the property, ensure that the property owner is reliable, the property exist, appoint ethical real estate agents. To know more about the real estate scam, join the virtual real estate investing club.