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Home arrow News arrow 10 Secrets to Make Money on Real Estate
10 Secrets to Make Money on Real Estate Print E-mail
Thursday, 03 August 2006
Making money in real estate is always a topic for those who would like to invest. This includes many all the different types of real estate investments. Land, apartment buildings, homes, commercial buildings are all part of a real estate investment.

However, whatever type you choose, you will surely profit if you keep in mind the tips listed below.

1. Learn to appreciate. In real estate, making money is as plain as holding on and waiting. To really get the most appreciation in value, however, you should buy in an area where demand is growing faster than the supply.

2. Understand depreciation. It is recommended that you purchase a property that has its value primarily in the buildings. That is because you can not depreciate the value of land.

3. Try a loan pay down. Equity is gained with every payment you make. You may get the cheapest interest rate you can and more of each payment will go towards the principal.

4. Get to know cash flow. Positive cash flows comes when when you buy income property the right way. Plus, you can have your own tenants paying all the costs and paying down the mortgage loan.

5. Buy for a low price. Select investments that are below the market. This will allow you to get instant equity that will be converted into a profit when you sell. Convince the seller to sell low by giving him the advantages he could get. You may inform him about the fast closing, cash, assume some debts or liabilities and many more. You may discover that seller may have his own reasons to sell it low.

6. Sell for a higher price. Find the right buyer who can afford the top dollar.  Keep it clean and make it easy to buy.

7. Introduce the advantages of financing. You can earn more for a property if you offer financing. This happens especially when you allow someone to buy it with little money down. You will also enjoy good interest on the loan.

8. Change use. If there is a higher use for the property, you can convert it to make it worth more to the next owner. Sometimes this means making condos into apartments, or apartments into condos. Maybe converting a home into office space will get the biggest return.

9. Take a moment to improve and repair. Repairing anything that needs to be fixed. However, you need to look creatively and carefully to find improvements to make. Focus only on those that will increase the value more than what they cost you.

10. Parts do sell. The parts are often worth more than the whole. That is how it is in real estate. Splitting a value in parts is easier to sell plus  you will make more money in the end.

It is easy to make money in real estate. It can be a wonderfully creative process. You may look at the sources of profits listed here, and think of how you can use a few of them on your next real estate investment.

 By M. Sese

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