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Propery Investment For After The Bubble Burst

By Edited May 18, 2015 0 2

Property investment ploys are everywhere. Everyone has seen the late night infomercial guy hawking his wares to the unsuspecting public. Get rich in real estate they say, it only takes a few months and no money down. The sad fact is that most people will never get rich in real estate or anything else for that matter, especially not from late night gurus selling rags to riches real estate mogul dreams. There are however tried and true methods for making money in investment properties.

Even if you don't think you have what it takes to become the next Donald Trump, you can still make some real nice money with property investing. Here are a few different strategies that different personality types can take advantage of, let's face it, not everyone is a salesman.

One of the first things you need to realize is that having your own home is actually a property investment. So if you don't already own a home then that should be one of your first goals, you don't, however, have to own a home to buy one for investment purposes, so don't let that stand in your way. The reason I mention owning your own home is that most people don't think of their homes as investment property and they should.

There are many different ways you can go if you own your own home, especially if you have equity in that home. Another thing that people believe is that they should pay off their home. One should consider the potential money lost by not having your equity work for you. Instead of just letting that equity sit stagnant or worse yet, in your lenders account where they use your money to make even more money, why not be your own bank? Why let your lender get rich with your money? The sad thing is, you pay them for the privilege.

Long term investing:

If you don't want the hassle of fixing up properties or you don't really care if you make tons of money every month then this strategy could be your best bet. Buying property for the sole purpose of holding on to it for the long term is a good strategy for those who are interested in making money when the property goes up in value. Obviously the technique here is to make sure you buy a good house in an even better neighborhood, and to find the best possible tenants that you can. You can even hire that out to a property manager if you like; this type of investing is really for the hands off type of real estate investor.


Many people have heard of this term but for those who haven't, it simply means buying a house for the sole purpose of selling it at a profit. Now, this in and of itself doesn't mean much but some investors have seriously abused this technique to the point that many people think of flippers as rip off artists. The fact of the matter is, there are unscrupulous people in any business and real estate is no different.

Those who simply find the best deal on any house no matter how they go about it are not the kind of people I'm thinking of in regards to this strategy. Adding value is paramount in my opinion in any business, there is no need to take advantage of people in tough situations. Now that I got that out of the way, there is plenty of money to be made in flipping houses for a profit if you are willing to do the right thing. There are actually many different ways to go about flipping; in fact, to many to list but here are a few.

1. Buy a house at a great price, turn it around for immediate sale or offer it to another investor. This is good because if you don't have any money at all and absolutely no way to obtain any, you can still make money in property investment. All you have to be is a "deal finder" and you can make enough money to get started with your own properties.

2. Buy a house and fix it up: There is a lot more money to be made here. If you get the same house that you were just going to flip, and you take that house and fix it up you will make it more valuable. There is a lot more to this aspect so research will be required but it will be worth it. The general idea is to find an ugly house, fix it up, and sell it for a nice profit. Make sure it is only ugly, no major repairs needed like foundation, electrical, or major plumbing. Things like fixtures, paint, and carpet are all that you want to do, at least until you get some experience.

3. The trifecta: Ok, I know this is not horse racing but this is really a profitable technique that involves three different aspects. Technically this is not flipping but the strategy is this. Step one; buy an ugly home in a good neighborhood. Step two; fix up that home by doing simple things like landscaping, paint inside and out, carpet, and maybe some fixtures. Step three; either rent out the home or even lease it with the option to buy.

Lease-options are really property investment strategies unto themselves but if you employ it into other methods like flipping you can make even more money. The lease option is simply a standard lease with a pre-negotiated option to purchase the property at a future date. All of the details of the lease-option are negotiated by the lessor and lessee in advance.

A standard lease-option might look like this. There is usually an option fee which varies greatly, then maybe a two year lease at the end of which the property will be available for purchase at the agreed upon price. Often times the option has at least one renewal built in for another year or two.

The great thing about a lease-option is that the lessees' usually take much better care of the home than a typical renter because they might be actually buying the home at the end of the lease. For the same reason, they usually take care of most of the issues in the home due to the fact, often times they feel as though they already own the home.

Not every strategy is for everyone and there are limitless ways to mix and match. The point is that if you want to get going in real properties then you don't have any excuse. There are no money down strategies, good economy, bad economy, long term, quick flip and countless others. Find a niche that fits your personality and start there to make yourself rich in property investment.



Jul 15, 2010 11:57pm
real estate will always be a good long term investment. Great article!
Jul 16, 2010 11:37pm
Thanks for another kind comment
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