Make Money Buying And Selling Real Estate

Keeping up with an ever-changing world, people grow increasingly mobile, moving from one place to another and continuously seeking ways to make life easier and more convenient.  This mobility of people makes buying and selling real estate a very lucrative venture, despite the ups and downs of the real estate market, because wherever people go, they always need a place to stay and call their home.  

You’ve probably heard testimonies of people making it big and earning tons of money from buying and selling real estate. This can be true for you too if you have the time, dedication, and most importantly, enough insight to help you play your cards right. You would initially need to spend money before you can make money buying and selling real estate, so it is a must that you know how to make the right move.

The easiest and most common way to make money from this business is to simply purchase a property, groom it up a little bit to add to its value, and then sell it for a profit.  This practice is also known as flipping.  The amount of money you make depends a lot on your choice of property.

Bear in mind that you have to select a property that is still structurally sound, needing no major electrical or plumbing repairs and that would require only minor aesthetic improvement.   It would be best if the repair or work needed is something you can do yourself.  This eliminates the need to hire people which can further eat into your profit.

You can find a lot of these properties in bank listings of foreclosed properties and bank or government auction sales. Check out dailies for notices of foreclosed properties and seek them out. Pay more attention to those advertisement that indicate “quick closing” or “must sell” as this means the sale is urgent and the owner may be more open when you negotiate for a cheaper price.

If you do not have the ready cash to make a purchase, seek out a loan from your bank and have it preapproved and ready before searching for a property to buy.

Having these preapproved loan documents handy can help a lot in closing a deal fast. 

In sprucing up the property, try not to overdo it.  Stick to the basics to keep expenses at a minimum. You may just retile or recarpet the floors, change the wall paper if necessary, or do basic painting using neutral colors.  Make sure though that you change broken windows or worn out and damaged fixtures like hinges, door knobs or faucets.

Even if you intend to sell the property unfurnished, showcase it to prospective buyers with some furniture, curtains and a few decorative pieces to give them an idea how the house would look like lived in, rather than present it to them as an empty space.

Now that you have your property ready for the market, try selling it yourself.  Channeling the sale through a real estate broker and then paying commission fees defeats the original purpose of cost-cutting during renovation.  Selling without representation may be daunting to many, especially if you lack experience in marketing and selling, but it is certainly feasible.

A most effective way to showcase the property is through the internet, creating a virtual tour using photographs or videos that prospective buyers can view on their own.  You can advertise the link to this virtual tour through eflyers, print ads and direct mail to reach out to more people.

There are other ways to make money from buying and selling real estate. You can opt to provide Vendor Finance Loans to a prospective buyer of your property who cannot get financing from external sources. Negotiate an acceptable payment term that will include the selling price of your property plus interest for the duration of the payment period. If you took out a loan to purchase the property, the payment term should comprise your loan repayment plus a premium.

Buying and operating apartment units are another way to make money in real estate, although this requires more capital, time and effort if the owner intends to be the property manager too.   Though you are more likely to make more money with operating apartments, the risk can be quite high so screen possible tenants, making sure they have the capacity to pay your rent and have the good nature to take care of your property.

Buying and selling real estate can indeed be a profitable endeavor, especially in an optimistic market.  But as in any kind of business, it is not without risk and challenges.  Reduce the risk by learning everything about the business.  Seek out a mentor.  This saves you from costly trial and error and cuts down the time you need to earn your first million in buying and selling real estate.

Are you making money buying and selling real estate or thinking about doing so? Be sure to share your comments, thoughts, ideas below…