Most of us have spent our time looking for a better way of making money, including exploring the options open to us in the real estate market. There are many ways for an individual to make their mark on the real estate market, including the decision to flip a house or to invest in a Real Estate Investment Trust. Making a profit in the real estate market can be a tough ask but David Ebrahimzadeh believes there are options open to every potential investor to explore their options for profiting from real estate.
1. Real Estate Investment Trust
This is an option that should be explored by every individual who is looking for the best way of making a real estate investment without having a large number of funds in hand. Instead of spending all your funds looking for a small, fixer-upper to invest in to start your real estate business, you can look to be repaid in dividends by investing in a Real Estate Investment Trust. One of the bonuses of investing in a REIT is the ability to choose the type of property you wish to invest in. Each REIT has a specified goal of investing in multi-family properties, hotels, or commercial properties. Even the smallest investment in a REIT can pay major dividends with 90 percent of profits returned to investors each year, according to Business Insider.
2. Flipping Properties
When you are looking to make a real profit from the real estate markets you should look into flipping properties. David Ebrahimzadeh sees the decision to start flipping houses as a more complex and stressful option than a Real Estate Investment Trust. However, Ebrahimzadeh explains the rewards in the form of profits are extremely high if the flip is completed correctly. Investopedia explains the major profits that are available can be found in doing a large amount of the renovation work yourself. By having some construction skills or the ability to lead a crew of workers through the required renovation in a short time you will maximize your profits.
3. Long-Term Residential Rentals
When you are looking to take a long-term approach to make a profit in the real estate markets you can invest in a residential property for the long-term. The first step to take is to find a residential property in a desirable location that is sought after by renters. If you can secure a long-term rental agreement you will be able to turn a profit that will last for several years. Entrepreneur explains the most important aspect of securing a long-term rental agreement is to find the perfect property and price your rental in the correct price range to ensure your property stays inhabited for years to come.
4. Contract Flipping
This is a little more difficult for you than the traditional home flipping the majority of us are aware of. Instead of flipping a property, you can simply find a buyer who is underwater with their payments and put them together with a motivated buyer. As a way of sourcing a home without having to take part in the tricky issue of sourcing funding or going through any form of escrow program. Instead, you are simply acting as an agent who brings together the buyer and seller with contracts providing you with a fee for bringing these two parties together.
5. Vacation Rentals
Most of us have heard the stories of people who have purchased vacation rentals and made a fortune from them. There are many reasons why vacation rentals have become so popular, but the rise of Airbnb has played a major role in this development. The initial investment you will need for this kind of real estate property is larger than you may imagine but profits are also high. The COVID-19 pandemic has shown the vacation rentals market is volatile with a range of potential problems but in normal times the profits available are large.
There are options in the real estate markets for any individual to explore from those with a large investment fund to those with limited options. Flipping houses remains the most popular option for most real estate investors to explore. Other markets can be equally as profitable with the use of Real Estate Investment Trusts being a high return option guaranteed each year.