For as long as real estate has existed there have been people trading in it to make money and that has never been truer than in today’s world. It is for this reason that so many people will tell you to invest your money in ‘bricks and mortar’ and whilst this is a simple piece of advice to throw in one’s direction, it is actually very true indeed. There are so many benefits of this kind of investment, a secure market, a physical asset which you’ll own and of course it can help to diversify your portfolio. The greatest benefit however, at least according to real estate guru Tyler Tysdal, is the many ways in which you can earn from real estate, let’s take a look.
Real Estate Equity Group
Private equity groups have existed for a long time but they really rose to prominence in the real estate industry in the early 90s after property prices crashed. What happened then was that groups of companies or even families would pool their money together to scoop up large amounts of properties, which they would then cash in on once the market got back on its feet. If you invest in a private equity group for real estate then you can invest a smaller amount than it would cost to buy a property, and then reap the rewards of a regular annual return.
Flipping
In a nutshell flipping properties is about buying a property at a low price, giving it some much needed TLC and then quickly selling, or flipping, it for a small profit. People who do this will generally have multiple properties at one time and they will use their skill in the market to make numerous small profits over the course of a year. More often than not these properties are picked up at auction which is why they can be obtained for such low prices, and then after some small investment they will once again yield a profit.
Renting To Sell
Arguably the most common way in which people invest in real estate is that they will buy a property which is attractive and then look to rent it out, with an eye on selling it in the future if the market increases. This is a low risk strategy which is working for hundreds of thousands of investors all over the world and in most cases the rent that they receive can actually pay for the value of the property over the long term, which can then mean you have an asset which has already paid for itself, giving you 100% profit when you sell it.
No matter which option you take the message will always be the same around real estate, which is the same in almost all business dealings, buying low, and selling high. If you do have cash to invest, this is the best place to do so.