Investing in real estate can prove to be a lucrative option for the people involved in it. It is the real estate agent who helps buyers and sellers meet to strike a deal. Whether you engage in buying or selling real estate, it is a very profitable investing strategy. Investors can make money in many ways including by investing in real estate.
- Investors have reaped huge profits by becoming landlords of the property taken on rent.
- Many investors have bought undervalued real estate and sold it after fixing it up.
- Real estate investment groups can also generate good revenues
- You can also invest in real estate stocks to get dividends.
Becoming a landlord
It is a widespread phenomenon to derive regular income out of rental properties. Generating revenues by lending properties has become a leading vehicle in the real estate business.
As a landlord, you will have some responsibility like maintaining the property, taking care of insurance and rents, and also dealing with property-related concerns of the tenants. It is a hands-on investment to be a landlord unless you hire a property manager. It might not always be pleasant to deal with tenants, but if you make your choices carefully, it might not be a major problem.
After becoming a landlord, you earn through rent and even the appreciation value of the property increases over time. Thus it becomes a “win-win” situation for investors according to experts like EJ Dalius which makes it a popular choice.
Working of Flippers
Flipping is when investors in real estate buy properties for a short time and then resells it to generate revenues. Eric Dalius had earned a reputation of being a master in the real estate business by learning the real estate tactics. There are two ways flippers work:
- Investors buy a property and then undertake the repair of the property. After the renovation, they sell the property for a higher value. Investors act in a calculative fashion to buy properties at a low price, which with slight modification and repair, bring in paramount revenues.
- Some investors buy a property, hold it for some time, and then sell it. They are calculative enough to buy properties in a rapidly increasing market.
Those involved in flipping when they do it right way, can be a good source of income.
If you compare the real estate market with that of bonds and equity, you might say it comes with low volatility. However, if you compare it with traditional sources of income return, real estate is more attractive and lucrative. Nonetheless, you cannot deny that the market of real estate can generate steady income and build capital.
The only probable drawback of real estate is illiquidity. It becomes challenging to convert cash into assets and assets into cash. In stock and bond transactions are completed in seconds. However, if you keep your expectations realistic in terms of your investment, you are sure to make a fortune in the realm of real state.