Real Estate: it’s one of the best ways to make money, especially during the 2013 Real Estate market. If you turn on your TV, or surf the internet, you will see lots of great shows about buying income properties or house flipping. There are few better ways to generate income and build wealth, no matter how young or old you are. But be careful, it can also be dangerous if you don’t take the right precautions as was evidenced by the most recent crash.
Rental Income Is Awesome
The first source of profit that can come from Real Estate is rental income; or income that comes from renting out a home or property that you own. In many cases landlords can rent out a home and pay almost nothing for the mortgage on the home while they build equity and eventually sell the property in a few years for a nice profit. There may also be tax deductions available to you as well, so consult your tax professional for more information.
Buy Low & Sell High
House flippers are people who buy low and sell high (otherwise they’ll soon be house floppers). This is a great way for anyone to generate consistent income and build wealth, even in Orange County. The key to success with buying low and selling high is to find a great deal. Foreclosures, short sales or homes that need work are great places to look. If the home buyer isn’t afraid to buy a fixer upper, they can make more money compared to trying to sell a home that needed little to no work at all since most people shy away from properties that need work, causing less competition in the bidding process.
Benefiting From Refinance
Besides buying and selling homes, another way to make money in Real Estate is by refinancing the mortgages for the homes that you already own. When you refinance your mortgages, the rents for the homes that you own don’t change. You can use that extra revenue or cash flow to invest in more homes or save that money as a “nest egg” for future repairs that you want to make to your homes, down the road.
Increase Your Net Worth Quickly
When you put down 20% to 25% on a home or commercial property you will see a profit of at least $3,000 per year or a nice return of at least 15% on your initial deposit if the home or investment property that you purchased is valued at $100,000 and the average rent that you decide to charge is around $750 per month or more.
To learn more about the benefits of buying Real Estate in Orange County or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.