If you have been looking for a new way of investing, you might have decided that real estate investing is the right market to get into. However, you might be overwhelmed and unsure of how to get started.
There are so many options out there for real estate investing, including investing in single-family residences, multi-family residences, commercial buildings, land and more.
All of these options can be solid ways of investing and bringing in a nice income, but one great way to start as a new investor is with single-family residences. There are actually a lot of ways that you can make money with single-family homes, and they can be a bit easier to purchase and manage than other types of properties. These are a few ways that you can make money with single-family homes.
Buy and Sell As-Is
Some people put their homes on the market for very low prices. Some might underestimate what their home is worth or might sell in a slow market. Others might already have another mortgage or might be on the verge of foreclosure and could be looking to make a sale fast. Sometimes, you can buy a foreclosed home that is in good shape and turn around and sell it without doing any work to it. In these situations, you can get a great deal on a nice home that can be sold as-is. You might have to wait for a better market or possibly wait a bit longer to find a suitable buyer, but buying quality homes at rates that are lower than the appraised value can be a smart decision that doesn’t require much more to invest than a funding option and a little bit of time.
Buy, Fix Up and Sell
A very popular option for investing in single-family homes is to buy homes that need a little bit — or a lot — of work. After fixing up the home, you can then sell it for a higher price than you paid for it. In some cases, you can sell it for much, much more than you paid for it, actually.
There are a lot of things that are involved in buying, fixing up and selling a home. To reduce your risk, you might want to look for a home that only needs cosmetic work or other affordable work. However, if you are willing to take on a more advanced project, you can buy a home that needs a lot of work and can completely transform it before selling it.
You will need to make sure that you purchase fixer-uppers for a reasonable price, however. You will probably also want to work with a contractor who can look over potential purchases and give you an idea of how much work — and money — will be involved in fixing up each house. You might even want to do some of your own work as a way of saving money, such as painting.
Buying and Renting
Another option is to buy single-family homes and rent them out to residential tenants. There are two ways of doing this — you can purchase a home that is already ready to rent out, or you can purchase a fixer-upper and make improvements before renting it out.
Either way, you will only be able to recoup your money a little bit at a time. However, this can be a very comfortable way of bringing in a long-term income. This is a good option for retirees who are looking to bring in more income, but it’s smart for any investor as well.
As you can see, there are lots of ways that you can make money from flipping properties. These are a few of the many ways that you can make money from single-family homes, for example. If you’re interested in and need help with getting started, contact us at Center Street Lending today.