Many have become millionaires without investing any money down! Real estate investments are indeed better moneymaking tools than even stocks and bonds. Invest in real estate and watch your assets building silently, perhaps even making you a millionaire.
Many people have wondered how to make millions in real estate investing and if it is possible at all. It is very much a possibility if you are savvy enough and have benefited from gaining knowledge by reading appropriate books, e-books, magazines etc. that will guide you in your real estate investing career.
Making Money Investing In Real Estate
It is true that experienced and proficient investors have raked in amazing fortunes perhaps even by investing no money down! They use creative real estate investing techniques that make it possible for amazing success stories. There are several methods of investing that they adopt, flipping, lease options, seller financing, taking over the mortgage, tax liens, foreclosures, rehabbing, investing in notes etc.
Some investors find a property that is in need of repairs buy it at a discount, and quickly resell it for a considerable profit after fixing it up. Let us say there was a property worth $100,000 and needed repairs value at $20,000 that the owners are not able to afford. An investor who specializes in wholesaling or flipping will negotiate a price of say $70,000. The repair work will be taken care of keeping expenses within their budget and once they are done, they will sell the property for say $110,000. That is a cool profit of $20,000 on a single deal. Most of them do a minimum of 4-5 deals a month.
Investing in Notes has also been another area that has been extremely profitable for an experienced investor. Some investors look out for discounted notes and utilize them creatively. Let us say a person had a debt and owned a note worth $300,000, but as he needed the money immediately he settled for a price of $260,000.The investor has made a profit of $40,000. This gives you an idea of how to make millions in real estate.
Rehabbing or fixer upper properties are another way to make a fast gain. Let us say there was a house valued at $400,000, but that it was in almost dilapidated condition. It had repairs worth $50,000. An investor buys it for $300,000. He fixes the property and sells it for perhaps $420,000 a cool profit of $70,000.
People have also made fortunes investing in tax liens and foreclosures. Liens are safe investments that earn passive income or may even fetch a property valued considerably higher than the price of the lien. It is a possibility to buy a lien at $8000 and end up owning the rights to a property worth $90,000!
Some people choose to invest in real estate such as rental income property and wait for the land to appreciate before they may want to sell it at a hefty profit. Many people investing in commercial real estate properties such as multi-tenant properties with a triple net lease just have to worry about how they will spend their money!
Investing in real estate is not entirely without risks, but if you are well prepared, are knowledgeable and choose wisely you may indeed learn by experience how to make millions in real estate!