You want to make money investing in real estate in 2021? Well, it’s not rocket science but it does take a fair amount of perseverance, determination, strategy, up-to-date information, research and time.
Generally, other real estate investors have already paved the way for you. Think along the lines of real estate investor and influencer
Stefan Aarnio. Before receiving accolades from entrepreneur.com, he started out just like you. He wondered how to make money investing in real estate, did his homework and took the (well-calculated) leap. Like Aarnio, you don’t have to go at it alone.
In this definitive guide, we introduce some of the best, proven ways to make money investing in real estate. These are our compilation of the top ten real estate investments types and tactics that are sure to help you reach your financial goals:
Is Income Producing Real Estate Worth The Investment?
While it is a well known fact that real estate investing takes research, strategy and perseverance, in the end it can pay off dividends.
Therefore, with the right team of real estate advisers behind you, you stand to rake in good profit and diversify your investment portfolio.
Albeit, real estate investment is not for everyone, but for those who are strong of heart and strong of mind income producing real estate can certainly be worthwhile.
Before taking the leap to invest in real estate, make sure to have an emergency fund, a decent retirement plan and enough time to follow through.
Then, get familiar with the housing market in the area of interest. As far as
Orlando goes, Authentic Real Estate Team is the premier partner for real estate investors. Our highly trained team of consultants and experts can help you ensure that your real estate income hits your desired target.
So what are you waiting for? Stop asking yourself how to make money investing in real estate. Call our team today and get the ball rolling.
What to Pay Attention to When Investing in Real Estate
The big question on everyone’s minds in 2021 is “How to make money in real estate?”
Sure, making money in real estate can be tricky at first, but once you understand the key points of real estate investing, things become easier.
The best way to make money in real estate is to pay attention to plus points and pitfalls.
Chiefly, these points are appreciation, location and liquidity.
Read on to find out the definitive strategies and success factors that can ensure you make real estate profits from home.
First and foremost, one must consider appreciation rates and appreciation potential.
Appreciation is simply the rate at which an asset or property increases in value overtime. Most often, appreciation rates are influenced by four factors – strength of demand, amount of supply, inflation and interest.
When it comes to maximizing a property’s appreciation, you have to make sure the your property is located in a developing and growing place.
This means that the community that your property is located in must be growing. Both the economy and population of the area should be seeing positive growth.
As a rule of thumb, properties that appreciate the most are purchased in the beginning phases of a community’s construction. In short, it’s best to buy a property when a community is first established and undeveloped. If you do, you stand to pay little up front and reap the benefit of high appreciation.
Therefore, look to the suburbs. Generally, suburbs see high appreciation values. Especially
outside of Orlando, there is a high demand for housing and this demand is increasing with no end in sight. With an influx of people moving out of the city and into the suburbs, more and more schools and universities, shops, restaurants and amenities are following.
All in all, an increasing population equates to increasing appreciation values.
It’s cliché but it needs to be said. There are three rules when it comes to wise real estate investing. They are location, location, location.
You can have the biggest, most luxurious house around but if it’s in a bad neighbourhood, it’s not a good investment.
Therefore, we suggest you consider the location and then the property itself before you made a decision.
One reason why location is the key to smart real estate investing if because buyers and renters need convenient transportation and want safety and access to amenities.
This means that want to live in a high quality neighbourhood that provides a high quality lifestyle. In addition, they want to be able to do their grocery shopping, choose from good restaurants and eateries, and have entertainment options in close proximity.
All in all, location is the make or break factor for profitable and successful real estate investing.
Liquidity is another important aspect to consider when investing in real estate.
In short, liquidity is the speed of the resale a property. If a property is relatively easy to sell and is bought at market value, then it is liquid.
Whenever you invest, you want to buy something that has good liquidity. If you do, whenever you go to put a property up for sale, you should be able to sell it quickly. If you don’t, you will have your money stuck in a property that you cannot sell afterward.
To summarise, liquidity determines how successful you will be as an investor and determines how much money you make when you sell.
Authentic Real Estate Team: The Investor’s Friend
Invest with the Authentic Real Estate Team. We have the knowledge and experience to buy properties that offer great appreciation rates, great locations and high liquidity.
Count on us to be your real estate investment partner. We’ve helped dozens of other investors turn a profit through their owned properties. Plus, with our decade of activity in the Orlando real estate market, we can help you make the most money from your investment.
Call our team today to find out how to get started
Before Investing Money in Real Estate: Do Your Financial Planning!
The key to investing in real estate that actually pays off is to keep cool and do your homework. Don’t make your decisions on impulse or sentiment. Rather, think with you head.
Use proven real estate investment strategies and do your research. Don’t get too excited without studying. Above all, you must be well informed to make a good investment.
And we’re the team that can provide you with the information and consultation that you need to turn your money into more money.
Below is our compilation of ten safe ways to make money investing in real estate.
After you read our tips and tricks, call us to take the first step toward your real estate dreams.
The 10 Different Ways to Make Money Investing in Real Estate
Long-Term Residential Rentals
One of the classic real estate investment strategies is to buy and hold long term residential rentals.
Indeed, housing is a necessity for all, which means rental properties are almost a guaranteed win win. You have a classic real estate investment that pays off in the long term and a family has a roof over their heads.
However, a word to the wise—some research, diligence and strategy are needed to make long term residential rentals pay off.
First and foremost, location will be the make it or break it factor to your success. In short, the appeal of the location will likely determine whether or not you can find a long-term renter. By and large, location is even more important than the quality of the house or property.
Long-term residentials represent the classic method of real estate investing: put down a down payment to buy a property and then hold onto it for the long term. If cashflow is positive, then the long-term residential investment has paid off.
Okay, so you don’t have a large amount of capital and your credit isn’t great. Now what?
Given these points, lease options can be a good way to go. Lease options mean that you lease a property with the potential to eventually buy the property.
Particularly, lease options are ideal in times of a bull market when the economy is sound and the market is climbing. This means that you will create a set-price on the property at which you can later make the purchase.
Sometimes, if the market continues its upward trend, you can turn around and buy the property at a discounted rate. Alternatively, you can eventually sell your rights to another buyer.
The key with lease options is to keep the right to choose on the table. In conclusion, as long as you have the option to buy the property but the deal is not set in stone, then you stand to turn a healthy profit.
Buying fixer-uppers and flipping them has become more popular, public and accessible than ever. In fact, there is a cultural movement happening in pop culture that glorifies this kind of real estate investment.
However, before you dive head first into a home renovation project, make sure that you have good contractors and the proper real estate advisers on your side.
In general, there is a substantial amount of money that stands to be made in home renovation projects. However, in order to get to this money, you must first be aware of a view points of order.
Simply put, location is the main criteria to consider here. Go for the least attractive and worn down houses in the nicest areas. Surprisingly, these hold the most value.
Make sure to consider how much you will have to initially invest with repairs, fixes and then the following maintenance. Therefore, we advise against purchasing sight-unseen at auctions. Rather, put the leg work in up front to understand costs and potential value. Additionally, get creative. Being a successful real estate investor and investing in real estate requires it.
There are many ways to make money in real estate. However, one of the lesser known ways is contract flipping.
This happens by finding an afflicted seller and a galvanised buyer. Emphatically, this method of real estate investing is most effective when find an eager seller and and even more eager buyer. Essentially, you act as the middle man as you don’t need to search high and low for a buyer after entering a contract.
To this this, first, locate a vacant home or homes that are defaulting on mortgage payments. Generally, these makes for the homes and sellers that are primed for contract flipping.
Short Sales & Bank Owned Homes
Short sales occur on homes that are behind on their mortgage payments but haven’t yet entered the foreclosure process. On the other hand, bank owned homes are properties owned entirely by the banks that are taken possession of after an owner fails to meet the terms of their mortgage.
Both of these real estate investments can be lucrative but be aware that they might not be as lucrative as in years previous.
In order to go ahead with a short sale, all parties—the bank, the homeowner and the investor must agree to the transition. Due to the fact that the property is being sold under the remainder owned on the existing mortgage, this might take some time and lots of back and forth.
Additionally, you may need to pay cash up front for the home in question. However, with short sales, you can see the property first and negotiate unlike in auctions where you may not have these opportunities.
On the one hand, short sales do take a chunk of time, however, they are usually well worth it. Sometimes you can make really good deals and can rake in tens of thousands almost instantly. In general, banks just want to get rid of the property but you should still expect a lengthy negotiation to get a cheaper or fair price.
These days, investors must be very careful with short sales. We’re living in a sellers market, currently. The deals at the moment are not as lucrative because banks are listing at the save value as most sellers. Therefore, negotiating power as a buyer is not as strong.
You can still make money with short sales and bank owned properties, however, it’s not as lucrative as previously.
As with purchases of almost any good, purchases of real estate can come with considerable savings when you buy in bulk. For investment properties, this not only means initial savings, but higher return percentages as well. This has made bulk real estate an increasingly hot commodity with investors. And nowhere is the real estate investment market hotter than right here in Orlando, Florida.
As Orlando’s premier investor’s agency, Authentic Real Estate Team has brokered countless purchases of individual short- and long-term rental properties. But we also like to set our sights on bigger transactions to make money investing in real estate. These include purchases of apartment buildings, whole condominiums, and even commissions of new condominiums from scratch. So no matter how big your investment aspirations, Authentic Real Estate Team Team has the knowledge, experience, and resources to match.
How to Make Money on Bulk Real Estate Investments – Apartment Buildings
In urban centers like Orlando, apartments are always a hot commodity. And today, with 80% of the 18-34 y/o demographic choosing to rent, apartments are a better investment option than ever. Even amidst rising rent prices, Orlando’s rapid job and population growth is driving demand for apartments to historic heights. With the help of Authentic Real Estate Team, investors from all over the country, and even the world, are cashing in on this exciting opportunity.
Buying bulk real estate is almost always a better value than buying individual properties. And when it comes to bulk real estate, it doesn’t get much more valuable than a block of apartments. With low vacancies, large scales of up to 100 units, and affordable purchase prices, apartment buildings are one of the best assets for holding wealth, and a great stepping-stone to even bigger-scale investments like condominiums. They’re also a faster way to grow your portfolio than with the one-step-at-a-time approach of buying single units or single-family homes. The Authentic Real Estate Team has your key to the best apartment blocks in the Orlando market, and even to some that only exist in imaginations and blueprints. Call us today go get going on
making money investing in real estate.
How to Make Money on Bulk Real Estate Investments – Condominiums
As with buying a building of apartments, bulk condominium investments can be a great value. Condos offer investors the option of owning from one to all of the units in a community. So, even though they are generally more expensive than apartments, they also offer more flexibility, as well as higher returns. They also have the advantage of HOA’s to screen tenants and keep up with maintenance of common areas and exteriors. Therefore, they can be a great way to make money investing in real estate.
Due to Orlando’s explosive population growth of 60,000 residents a year, as well as its steady flow of 60 million annual visitors, condos here are in high demand. As these numbers continue to rise, so too do the opportunities for investors to capitalize, and no real estate team in Orlando has helped more investors do just that than Authentic Real Estate Team.
How to Make Money on Bulk Real Estate Investments – Condominiums from Scratch
Just because your condominium hasn’t been built yet doesn’t mean you can’t invest in it. With Authentic Real Estate Team, whose unparalleled access to Orlando real estate includes pre-listed and even pre-built properties, you can invest in your future and build your dream condominium from the ground up.
If you’re looking to invest in bulk real estate, there’s no better place than Orlando. And if you’re looking in Orlando, look for the Authentic Real Estate Team. We’ve helped countless investors how to make money on bulk real estate investments and capitalize on Central Florida’s incredible growth and unmatched tourism industry, and with our area knowledge and access to Orlando’s best multi-family properties, we can help you too.
Tourist destinations are the key to making your vacation rental investment work for you. And with over 70 million tourist pouring in every year, Orlando is THE premier vacation rental destination.
In general, vacation rentals can present a lucrative way forward to a passive income. In short, this type of investment can be classified as a hybrid investment. For example, you can use your vacation property for your own personal use whenever you feel like it and rent it out to guests or visitors whenever you don’t.
The payoff from vacation rentals can range from a nice side hustle to a liveable passive income source. In short, they can be a great way to make money investing in real estate.
Additionally, the demand for vacation rentals in the Orlando area is off the charts. Many communities just outside the metropolitan area are specifically designed to accommodate vacation rental properties and their investors. And with almost a decade of experience in this field, Authentic Real Estate Team are the people to have in your corner.
Call us today to explore the plethora of opportunities that exist in vacation rentals
Becoming a hard-money lender, especially in the real estate world, can be high risk and high reward. This method is one of several alternative real estate investments.
However, before you jump into this type of real estate investing, it’s helpful to have a bit of capital saved up. Therefore, we recommend hard-money lending if you already have a portfolio built up and you already have a network of in the real estate world. With these factors to support you, you can provide these hard-money bridge loans and reap hefty returns on interest rates.
Indeed, this is one of the best ways to make sure your cash maintains its liquidity while generating short-term profit. When it comes to hard-money lending, especially, you probably won’t have to wait years to see the return on your investment materialise. So, if you’re wondering how to make money investing in real estate, hard money lending first.
Commercial Real Estate
Many of our partners and clients come to us with one question. They ask us how to create wealth investing in real estate. Not just short-term profit, but real, long-term and stable wealth. They want to know how to make money investing in real estate.
For them, we say commercial real estate should not be overlooked. Until now, commercial real estate remains king as one of the most lucrative means of earning an income and seeing consistent profits.
To really make your commercial real estate investment work in your favour, continue to develop and add value to the property. Renovations, upgrades and fixes can really boost your net income.
Furthermore, commercial real estate is such a tried and true way to earn money because business owners always need a commercial or retail space to do business. Then, as you watch your commercial real estate investments take off, you can turn your attention to opening up shopping malls and larger scale clusters of buildings and properties.
To start off on this trajectory, consult with Authentic Real Estate Team. We’ve helped dozens of eager investors get started toward their financial investment dreams through Orlando commercial real estate.
Another interesting option to consider when diversifying your real estate investment portfolio is land. Yes, land. Raw, undeveloped land.
Land development is yet another lucrative way to make money investing in real estate and it works as follows:
Follow the traditional real estate investment format by putting a down payment on a plot of land.
Build it up and add the infrastructure that it needs. For example, put a house on it, build an office complex, a gas station, whatever a community needs. Alternatively, sell the undeveloped land to a builder and exit the project here.
However, you stand to earn more if you add the utilities such as roads, waterways, a sewage system, and electricity and put it on the market.
Finally, sell the land that you have developed with your blood, sweat and tears for a healthy profit.
Whichever way you choose, Authentic Real Estate Team is here to help find the best undeveloped land plots in Orlando. With the Orlando population ever on the rise, the demand for land is high. However, we have access to some of the hidden gems in the land market. Get in touch with us to discover them and make your down payment.
Conclusion: How To Make Money Investing in Real Estate?
If you’ve read all the way to this point and you’re still wondering how to make money investing in real estate, we’ll summarise.
First, to answer your question, it is absolutely possible to make real estate money. You have to be strategic, determined and patience.
And, of course, the whole process is made much easier with the help of the Authentic Real Estate Team.
There are many ways to invest in real estate. The top ten best ways of how to make money investing in real estate include long-term residentials, lease options and home renovation flips. Additionally, contract flips, shorts sale and bank owned properties, bulk deals, vacation rentals, and hard-money lending are good options. Lastly, commercial real estate and land developing are also worth considering.
In general, these methods require a different level of initial, investment capital, time and involvement.
However, all of them require research and market knowledge. Unquestionably, Authentic Real Estate Team is the ideal partner for these kinds of investments.
All in all, we’ve assisted dozens of eager investors make money in the growing central Florida real estate market. In short, we combine our experience, our network of real estate professionals, and our up-to-the-minute market information to do so.
So, call and invest with the our team today. In the long run, you’ll see how our real estate brokers and real estate agents have the skills to help. Our team is waiting for your call. Because we operate on principles of authenticity, honesty, and trust, you’ll see that your risk is mitigated.
We are the investment partner for you!