7 Ways to Make Money Investing in Real Estate

Real estate is one of the most common investments. However, it is not easy to manage in that world, especially if you do not have a good knowledge of the market.

 

Real estate is an investment alternative that consists of buying a property such as a house, apartment, commercial premises or land, and then selling or renting it.

 

There are many other ways to earn money by investing in real estate:

  • Fix and resell,
  • long-term rentals,
  • vacation rentals,
  • short-term rentals,
  • long-term investments,
  • private loans with housing guarantee,
  • wholesale,
  • your personal residence

 

All of these can all be considered ways of invest in real estate.

 

A large real estate investment offers a great return of money without much effort. Each way of investing in the real estate sector has a different level of risk, profitability and time commitment.

 

Some investments in real estate are more a full-time job than an investment, as is fixing and reselling, while some investments like have almost no work. Let’s look at the best ways to invest in real estate in no particular order, with the goal of making money.

 

Make money with long-term rental properties

Renting long-term properties is a way of investing in real estate. You can take a lot of cash in advance, but the returns are incredible if you buy well and you are patient. The return on investment can be higher than 20% if the tax benefits and salary equality are taken into account.

 

When you invest in real estate by renting for the long term, you should focus on the cash flow. The best way to obtain a large amount of cash flow is to buy properties below the market value, make repairs to increase the value and choose homes that provide high profitability in relation to the purchase price. It is not easy to find properties like that; but you have to look for them, because they are in the market.

 

Better focus on single-family rentals, because they give better results than multifamily rentals. However, in different areas of the country, multifamily properties may offer better returns. Part of the reasons why you can get better returns in single-family homes is that there are more of them. With more volume there is a better opportunity to find a much better business.

 

There is another way to invest in real estate with long-term rental; commercial premises. It is a type of investment that generates high cash flows and hardly give management work. On the other hand, commercial rental terms are usually much more extensive and it can take a long time to find a tenant.

 

There are many types of leases: some leases consist of the tenant paying everything, including repairs and maintenance. Other leases imply that the owner must pay for almost everything, including the conversion / remodeling of the property to the needs of the tenants.

 

Make money with reforming and reselling

“Reform and resell” is a great way to invest in real estate, but a lot of work is needed:

  • You have to find offers,
  • manage the contractors,
  • keep track of the accounts,
  • and get to sell the houses.

It also requires a lot of money for the down payment and repairs, although a hard currency may be an option to reduce the money needed.

 

We advise this type of investment for people / companies with a large range of industrialists, and the ability to manage and lead projects.

 

How to invest in real estate by making a ‘pass’

Making a ‘pass’ in real estate is when an investor buys a property under a booking or deposit contract. Immediately the house is sold to another investor without making any repairs and in some cases without having signed the purchase-sale of the property.

 

An investor can sell the property without buying it, buy it by getting the contract and then assign the contract to another investor. Some real estate investors are engaged in making ‘passes’ and making hundreds of thousands of dollars a month. The advantage of ‘passes’ is quick money, but it is extremely risky and fundamentally occurs in the bull market where prices increase month after month.

 

Make money with your personal residence

Your personal residence is another way to invest in the real estate sector. Some may not consider a personal residence as a way to invest in real estate, as it does not bring rent. We believe that there are definitely ways to make your personal residence a great investment.

 

It is also possible to buy a personal residence that can be converted into a profitable property. This is a great way to buy a rental property with little money. You can buy more than one property in this way and build a rental portfolio with small down payments.

 

Invest in real estate with long distance properties

Investors are beginning to invest in real estate by investing hundreds of kilometers away. It takes a lot of work to make the long-distance investment work. You need to choose a market, find a great real estate agent, find a great property manager and then find the right property or properties.

 

  1. Choose a place: It is smart to spend time getting to know people and exploring any area in which you want to invest.

 

  1. Find a great real estate agent: A good real estate agent is a key to any successful investor strategy. If you want to invest in real estate over long distance, you need an impressive agent. That agent will help you find deals, possibly inspect homes for you and schedule inspections. I always suggest that the investor become an agent himself if possible, but it is difficult to do this with a long-distance investment.

 

  1. Find a property manager: If you want to invest in long-distance rental properties, you need a property manager. A good property manager can mean the difference between a profitable rental and a disaster. A property manager will rent the house, will manage the expenses, find contractors and take care of the house for you.

 

  1. Find a great contractor: It can be difficult to find a good contractor in your local area, and it is even more difficult over long distances. This is where you need a great real estate agent and the property manager to help you find a good contractor. The best way to find a contractor is by references. You need to have people you can trust in the area you are investing to refer contractors.

 

Make money investing in vacation rentals

Buy a house in an excellent tourist location, get a great property manager to rent it for you and charge the rent. The difficult part of a vacation rental is the very cyclical market. The high season can bring a lot of money, while the low season can bring almost nothing, because the demand decreases.

 

Cash flow on vacation rentals may look better at first, but management fees, expenses and vacancies will almost always be much higher in a vacation rental, than in a long-term rental.

 

Conclusion

There are many ways to earn money by investing in real estate.

 

The long-term rental is a good choice, because it continues to provide cash flow month after month, year after year.

 

“Reform and resell” can provide great income, but you must maintain a high volume of offers and quickly transform to make a lot of money.

 

The vacation rentals, long – range investment can also be great investments if you do your research, take your time and shop well.

 

This article was contributed by Zoom Property

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6 Home Security Gadgets to Protect You and Your Property

What does it take to safeguard your home nowadays? A guard dog? Maybe! A strong fence? It’s worth a shot! An alarm system? Definitely! These and more are all good features to have in and around your home so that it’ll be safe from intruders. But you have to understand that some criminals have become smarter over the years. No one is simply going to break in your house anymore hoping to not get caught. Even the simplest of intruders expect houses to have state-of-the-art home security systems in place. And you should. But which ones are the best to go for?

 

To beat intruders at their own game, you have to be one step ahead of them. These 6 home security gadgets can ensure that whatever happens to your home, you, your family, and your property will remain protected and safe. Criminals will have nearly an impossible time attempting to stay undetected when you have these set up in your home.

 

August Smart Home Access System

 

Protecting your home and property is primarily about who you give access. If people are suddenly on your front door and you don’t know who they are and why they’re there, that’s more or less a sign of danger. Fortunately, the August Smart Home Access System gives you ample opportunity to limit people’s access to your home when you’re not there. This highly advanced home-locking system, complete with security cameras and passcodes, is an interactive gadget that lets you specify the people allowed to go into your home. You can even give specific friends and family their own passcodes, ensuring that only they can go inside your home when you’re not there.

 

Skybell HD WiFi Video Doorbell

 

An intruder isn’t always a stranger to you. Thieves, robbers, and other sorts of criminals looking to invade your privacy cause havoc into your own home might be those you know and you’re just unsuspecting of their true motive. But once you get a hunch that someone in your circle shouldn’t be invited to your home, you can easily block them off with the help of Skybell’s HD WiFi Video Doorbell. Wherever you may be, once a person rings your doorbell, this nifty home security gadget will immediately analyze him/her, video record their presence near your home, and you get the power whether to let him/her in or not.

 

Canary

 

The Canary Home Security System makes use of all the senses—sight, sound, and temperature. Oftentimes, it’s not enough that you see or hear something strange happening in your home. A truly masterminded intruder is probably expert enough in the craft that he/she can hide, stay silent, and remain undetected as he/she invades your privacy. This particular gadget, however, can sense a person’s presence with the temperature. Since most people have their own body heat, it can detect an unseen and unheard presence in the room, possibly one that shouldn’t be there when you’re not home. Additionally, it also has your standard camera and audio-recording features that you can look and hear into wherever you may be.

 

Nest Protect Fire and Carbon Monoxide detector

 

Sometimes, the danger isn’t from an outside force, but rather from the inside. Possibly an incident of your own doing. This particularly relates to house fires, which can be incredibly dangerous but are also avoidable. Nest’s Protect Fire and Carbon Monoxide detector are some of many home security gadgets out there that can help you do that. One of the best parts about this detector is that you can connect it to your phone through an app. One whiff of smoke and you’ll be instantly notified of something wrong. And wherever you may be at the time, you’ll have more time to signal your neighbors and the right authorities to take out the fire.

 

Kuna Light Fixture

 

It can’t be stressed enough that criminals nowadays have gotten a lot smarter. And if you want to protect your home, you have to be smarter than them. A good way to do this is to go for home security gadgets that don’t look like what they are. When your system is camouflaged and doesn’t look like your ordinary security camera, alarm, and so on, it’ll be more difficult for intruders to try to avoid them. One such gadget is the Kuna Light Fixture. What might look like your ordinary porch light is actually a hidden security camera, audio recorder, and even a speaker system that lets you communicate with the person outside.

 

LG Smart Security Solution

 

The LG Smart Security Solution is an all-in-one of sorts. Most, if not all of the safeguarding features that some of the other gadgets contain are also in this sleek and compact security system. It has an HD-security camera that you can easily hide and camouflage, a motion-tracker to detect any presence not caught on camera, an audio recorder to let you listen in on what’s happening in your house when you’re not there, and many more. It’s easy to set up and you can connect it to your phone, allowing you to look over your property and family even when you’re not there to keep them safe yourself.

 

Sometimes, all it takes is a little modern technology to ensure that you, your family and your property are very much secure in your own home. These technologically advanced gadgets are the ones that you should go for the next time you need to upgrade your home security system to something a little more sophisticated.

 

This article was provided to us by our friends at OHMTECH

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Your home inspection list of 8 missteps to avoid

Once your offer has been accepted, the next step is getting through your inspections. As the buyer, you’ll want to make sure you’re prepared & know what to expect — and we’re here to help with that.

We’ve compiled a list of the eight biggest home inspection missteps that cost buyers money. Read them over to make sure you go into this process with your best foot forward:

1. Skipping the inspection entirely

You’ve probably heard that waving your right to inspections is a powerful negotiating tool to getting your offer accepted. While this is true, it’s also a risk. When you skip inspections, you’re essentially agreeing to buy the property, regardless of any damage that may be present. You’re also agreeing to take financial responsibility for the necessary repairs.

In contrast, if you elect to have a home inspection done, you’ll have the opportunity to walk away from the deal, if the damage is too extensive for you to handle.

You’ll need to weigh the pros and cons to decide whether not the extra bargaining power is worth it.

Ask yourself: Is this your dream home? Will you be devastated if it goes to someone else? Are you financially equipped to handle potentially-costly, unexpected repairs? Would you feel more comfortable looking at another home where electing to perform a home inspection is not a deal-breaker?

2. Hiring someone uncertified

As the buyer, you’re responsible for hiring the inspector of your choice. However, that doesn’t mean that you can bring in just anyone. While each state has its own specific requirements, most insist that in order for an inspection to be considered valid, the inspector must be properly licensed, certified, and up-to-date on their educational requirements.

You should look into your state’s specific regulations to make sure that any inspector you hire will make the cut, but in general, it’s a good idea to hire someone certified by one of the three, main associations. They are the American Society of Home Inspectors (ASHI) , the National Association of Home Inspectors (NAHI) and the International Association of Certified Home Inspectors (InterNACHI).

3. Neglecting to read reviews first

That said, being properly certified isn’t the only quality that you should look for in a home inspector.

Just as you would with any other contractor, you should do a little research to get a sense of their work history before hiring the person that you feel is the best fit. Reading reviews is a great way to know what you’re getting into.

Ideally, you’ll want to hire someone who has quite a few positive reviews to choose from. In particular keep an eye out for the following: Was the inspector on time? Was he or she easy to work with? Were the buyers able to understand the inspection report without too much difficulty? Were any mistakes discovered after-the-fact?

4. Having unrealistic expectations

The term ‘home inspection’ can be a bit vague, so it’s not all that surprising that many buyers aren’t sure what to expect. It’s important to know that this inspection only covers certain interior elements of the home – things like the electrical and plumbing, heating and cooling systems, and the condition of windows.

However, exterior elements like the roof, the sewage system, and any other exterior structures on the property are not covered. While you are, of course, welcome to have any of these other factors looked at, you’ll need to elect additional inspections in order to do so.

While putting your offer together, you should ask the agent you’re working with if any additional inspections are appropriate.

We’ve compiled a full list of home inspections we recommend you get right here.

5. Not showing up for the inspection

While the inspection report will give you a sense of the scope of the repairs a home needs, it’s not the same as seeing it with your own eyes.

The best thing you can do, as the buyer, to ensure that you’re going into the sale with open eyes is to attend your inspections. The home inspector will be there to explain any problems to you and answer your questions, if needed.

Arrive on-time and accompany the inspector as he or she examines the property. You should finish with with a realistic picture of the severity of any damage and a firm idea of when you can expect to have a report in hand.

6. Skimming the inspection report

Sometimes inspection reports can get a little long and dense, so buyers will make the mistake of skimming it rather than reading the whole thing. Unfortunately, this can have unexpected consequences, especially if you should happen to miss a huge – or expensive – issue.

The reality is, the inspection report is your get-out-of-jail-free card. If a problem is discovered during the inspection that’s too big for you to handle, you can walk away from the deal and get your money back – as long as you cite the problem during negotiations. If you don’t mention it, but discover the problem later, there’s no going back. Make sure you know exactly what you’re getting into before your money is on the line.

7. Negotiating poorly

Most buyers wish that they could ask the sellers to fix all of the problems found on the inspection report. While that would be ideal, it’s also unrealistic. Negotiations are a give-and-take, after all, and it’s a much better idea to make sure that sellers feel compelled to fix the most important issues with their home, rather than letting them cherrypick the easiest ones from a long list.

When negotiating, we recommend that you focus on the two or three problems that are most important to you and chalk the rest up to the cost of homeownership.

Keep in mind that structural or mechanical issues are often big-ticket fixes that you’ll want the seller to handle. Smaller fixes that can be done by a handyman can often be taken care of at a later date and at little cost to you.

8. Forgetting to collect documentation

If your seller does agree to do some repairs, you’ll want to be sure to collect any documentation on the work that was done. Contractor invoices can give you reassurance that the repair was made by a qualified professional and will also give you someone to turn to in the event that there’s another problem down the road.

This article was provided by Jennifer Miller and Originally appeared on OpenListings.

 

Thank you,

Your Edmonton Home Inspections Team

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