The easiest way to seemingly effortlessly make loads of dough is with a quick cosmetically fix & flip the legendary lipstick flip. All female investors say hey!
When learning how to invest in real estate you have to choose your niches within the Residential or Commercial space. As a real estate investor, you will use 2 top strategies when dealing with these investment niches to produce wealth. You are either selling for short term cash and capital gain or you are holding rentals for long term cash flow.
Residential Property is a type of lease property, containing a single-family or a multifamily structure that is available for occupation for non-business purposes (consists of max 4 units).
Let’s start with how to make real money with Residential Real Estate:
1. Lipstick Fix & Flip
3. Buy & Hold BRRR&Rilliantly
Lipstick Fix & Flip
So a really popular way of making money in Residential Real Estate is the lipstick flip.
When you cosmetically fix & flip you buy real estate at a low price, add perceived value with low-cost visual improvements and then selling it for short term capital gain. The key to flipping is speed. The fix of the property should be as quickly as possible for maximum profitability and to avoid expensive carrying costs. Don't fool yourself by the quick cash. This is a job. When you stop flipping, you stop making money. Flipping is an active form of investing and should be only just part of your broader real estate strategy
A whole-seller finds attractive real estate deals, writes a contract for purchase and sells the contract to another investor also known as "cash buyers." A whole-seller almost never owns the real estate. The whole-seller is a middleman taking an "assignment fee" anywhere from $400 to $4.000 or more for finding deals. Wholesaling is a popular strategy when starting with real estate investing because of the no money down promise.
Buy & Hold
The only true real estate investing is the "buy and hold strategy".
You buy a property and rent it out for the long haul. You create wealth by renting the property out and get paid monthly cash flow or you can hold the property and sell it for a profit in the future. To know if you have a good, a Meh or great investment in your hands you need to learn to Calculate for Profits. If you want to learn to Calc Like A Pro checkout your smart pack here
Triple your money! BRRR&R-illiant!
Buy, Rehab, Refinance, Rent & Repeat The big advantage of this strategy is that
you make money to wait in monthly cash flow. This is why it's called passive income. The renter pays your mortgage debt off and increases your equity in the home. So appreciation over time will make you even more money while you
wait. If you choose to fix and hold or significantly rehab (no lipstick fix here) the property you now have the benefit of forced appreciation. Your rental house increases in value giving you instant capital gain that you can pull out by cleverly refinancing the mortgage.
Short term Capital Gain, long term Cash Flow, long term Equity Capital
Build. Now that's making money work for you!
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This is issue nr 3 of the MAKE MONEY SERIES: