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.
· Raw land
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
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.
Wholesaling
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.
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