It is possible to make big money from real estate investing. In fact, you can become a millionaire. Yes, you really can. There are many, many opportunities for you to make a lot of money and I want to share some of these with you. Here’s how you can become a millionaire through real estate investing.
Here’s something that you can’t get from investing in stocks and bonds. The U.S. government encourages people to buy houses by offering incentives such as extra tax write-offs. This means that you can make a lot more money from real estate investments than other investments because you can save money from the write-offs. There are many different kinds of incentives for real estate investors and they require you to get creative in order to save the most amount of money. If you make the right moves, that money you save adds up and can provide you with extra cash that can be invested into more properties.
Trust Deed Investments
If you are interested in investing in real estate but you don’t want to deal with the hassles of being a landlord, trust deed investments may be right for you. Basically, when it comes to trust deed investing, you are the bank. Through a hard money lender, you can lend money to real estate investors and charge a high interest rate. In this case, the property that is being purchased, or another property owned by the borrower serves as collateral in the transaction. These loans generally last about a year and you can make serious money from interest rates. You’re basically investing in a property without dealing with maintenance, holding fees, or insurance. What’s better than passive income?
If you buy a property and hold onto it while you rent it out, the value of the property goes up over time which is called appreciation. This means that if you are willing to hold onto the property, it is very likely that the price of the home will go up over time. You can also find a tenant or use AirBnB to occupy the property.
According to Forbes, “While appreciation is not always guaranteed (just ask people who bought in 2006 and sold in 2010!), over time, historically, real estate has always increased in America, averaging 3% per year over the past century. Another type of appreciation that can come into play is known as “forced appreciation,” the concept of increasing the value by physically improving the property.”
Flipping homes is a great way to make money in a short amount of time as most fix-and-flips should be bought, refurbished, and sold in about a year. However, it’s not as easy as they make it look on HGTV. It takes a lot of patience, research, and due diligence. Before you start buying houses to flip, make sure that you research the neighborhood including unemployment, school systems, proximity to public transportation, etc. Find out more about house flipping by clicking here.