Real estate is one of the best ways to make money, says HuffPost and that’s a great accolade to start. It is also a stable place to store wealth, and less likely to fall in value than shares in the stock market, and foreign exchange. Pauline Paquin shared twelve ways to make money through investing in real estate. We found them thoughtful and we decided to share them here.
12 Top Ways to Make Money by Investing in Real Estate
# 1 Rental Income is a great way to smooth cash flow with regular receipts. Moreover, we can off-set mortgage interest associated with the property.
# 2 Additional Offsets against income include real estate insurance, advertising, property taxes, and utilities so almost all base load costs.
# 3 Property Improvements are tax deductible too, within certain constraints. However the added value is ours to keep!
# 4 Buying Low can yield an instant profit following auctions, foreclosures, and quick sales. A quick cosmetic fix up can yield awesome profits real fast.
# 5 Selling High makes good money. Real estate value is in the eye of the beholder. The value of stock is public knowledge. Each home is unique in some way.
# 6 Increasing Equity is the name of the game, because value chases rising construction prices, and rentals buy down mortgages every month.
# 7 Rentals Leverage on the true value of the property. A small stake plus a mortgage teams with market-related rent to produce great returns on owner investment.
# 8 Smaller Units have a multiplier effect with larger homes. Converting one into three units could easily double overall income.
# 9 Business Rentals command higher rates because supply is limited. Choose the right tenant, and get a good, long-term stable return in investment.
# 11 Increased Value after improvements financed through rentals, opens the door for refinancing and affording additions to the portfolio.
# 12 Increasing Rental Income after improvements, while the mortgage remains the same translates to improved cash flow we can use in so many different ways.
Explore a Real Estate Portfolio with Stonegate Equity
We are in the real estate business, but we are not realtors. Our marketing costs are lower and we have regular cash flow. Hence our professional fees are significantly less than real estate agents. Speak to us soon about investing in real estate wisely for great returns.