Even during downtime, your real estate business can give you decent returns on your investments, provided you don’t rely on a single stream for generating revenues. The best bet in today’s volatile real estate market is to have multiple income avenues so that if one is not doing too well, you can generate a steady income from others.
Even experienced real estate entrepreneurs can use some sage advice from time to time on how to make more money and grow their operations. Here are some expert tips you will find useful.
How to make money by investing in low-priced homes
If you have the capital to invest in residential or commercial real estate, you can make money in the following ways.
Lease purchase: This means that you will lease a property with a right to purchase it at a later time. This option lets you have a legal right over the property without really owning it. Realtors often earn handsome returns through this method.
Buy directly from homeowners: Keep at it and you’re sure to crack a good deal with a homeowner who wants to sell their property fast and easy but wants to avoid the hassle of waiting for months for a qualified buyer and dealing with real estate agents and showing their home to scores of strangers. You can then renovate the property and sell it house at a premium.
Buy foreclosed property: Keep an eye out for homes that have undergone foreclosure (claimed by the lending bank due to nonpayment of loan by homeowner). When banks acquire these properties, their aim is to quickly recover the sum due to them, which is why such homes sell at a much lower price than the going market rate. Once you acquire a home at a discount, you have already earned yourself a good profit.
Buy from the Department of Housing and Urban Development (US HUD): Any homes that face foreclosure due to nonpayment of dues to the government are sold by the HUD at highly discounted rates. Look out for such deals as these can fetch good profits. The same applies to homes claimed by the US Department of Veteran Affairs.
Buy at home auctions held at the local courthouse
This is also a great place to get bank-owned homes at a low price. Such auctions are generally held outside the court during foreclosure proceedings as the banks are eager to sell off the property and recover their funds.
To sum up, whatever method a real estate investor or house flipper chooses to increase their real estate income, acquiring a property at a good price is the first step they need to get right with each deal.
Additionally, aside from being adept at what you do, real estate experts at the successful San Antonio home buying company believe that providing exceptional service to each customer is a key element of long-term success in real estate. Not only this, a professional house buyer must ensure that each deal they close will get them word-of-mouth publicity and goodwill in the local community.