3 Ways to Make Money in Real Estate

Ways to invest in real estate

See more of this Ontario home at ComFree.com

There is no doubt that real estate is a sound investment in Canada right now. And what with the amazingly low interest rates we have, it’s a no-brainer that real estate investing is probably a good way to make money if you’re considering it.

If you are just getting started or would like to get started, here are three ways to make money in real estate.

Ways to make money in real estate #1

Take on rental properties

Even if you pay a high price for the property itself, you can re-coop the costs by letting the rents you collect pay for the mortgage. Of course, investing in a rental property is usually a long-term gig and your objective is to ensure that the property itself generate a positive cash flow from month to month.

While this will not make you rich overnight, with some vigilance, this type of investing could make you rich over the long haul.

Ways to make money in real estate #2

Go the pre-construction route

Buying a property before it is completed and flipping it with the assumption that it will sell for a much higher price are usually done on condo projects. Although they tend to be riskier, there are educated guesses you can make regarding the location and the popularity of the condo complexes.

You must do your homework before you go this route, as a down market can prove to be quite daunting. Look into areas that desirable to live in and expect market growth within the next one to two years.

Ways to make money in real estate #3

Flipping homes

As I’m sure you’ve seen tireless amounts of reality shows on TLC about flipping homes, for some people, this works wonderfully and they manage to make some modifications to the home, stage it well and sell it within a couple of months.
Keep in mind, however, that you are watching a TV shows, with great editors and the entire process takes under one hour. In reality, not reality TV, house or condo flipping could possibly be a lucrative investment if you know what you’re doing and you stick to your estimated budget.

To start, make sure you are buying the property at a discounted rate. Second, ensure that there are no hidden costs. Third, make sure to get a home inspection done beforehand. A few hundred bucks can end up saving you thousands.

If you are interested in getting involved in real estate investing, make sure that you crunch your numbers right and begin slowly, as you feel your way through the industry before diving in. After all, your objective is to make money in real estate.

If you’re ready to buy or sell a home, visit ComFree.com today.

3 comments

  1. Sherice Boxley says:

    We should emphasize, however, that investing isn’t a get-rich-quick scheme. Taking control of your personal finances will take work, and, yes, there will be a learning curve. But the rewards will far outweigh the required effort. Contrary to popular belief, you don’t have to let banks, bosses or investment professionals push your money in directions that you don’t understand. After all, no one is in a better position than you are to know what is best for you and your money.

  2. Armanoot says:

    I need good advice on investing since the markets are paying 1% and banks give you nothing. Where do you invest your hard-earned money for the greatest return?

  3. Flipping home is my favorite! I remember watching Flip my House and I learned so much from there. Thanks for sharing an informative article.

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