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Profit from Real Estate

100 Ways to Profit From Real Estate

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There are more ways to profit from real estate than most people realize- more than this list covers for that matter--but 100 ways is a good start. Some of these ways do not involve any investment at all, some require only a few hundred dollars, and others work only if you have large amounts of capital to invest. In 2012 buying short sales was the "hot" way to profit, but methods come and go from favor, so we include any that have worked at some point. There are even six or more ways to profit from real estate by writing about it.

With a list like this there is not going to be any deep explanation; a sentence or two is all you get. But when there is a decent resource that I know of to explain the concept further, I link the title to it. Let's get started...

1. Buy property in the path of growth - When you see the direction of growth, and see that growth accelerating, you can buy properties that might double in value quickly.

2. Buy options in the path of growth - A less capital-intensive way to speculate on which way a town is moving. Instead of buying the property outright you pay for an option to buy it at a set price within a year or two. Then you can resell before you even own the property.

3. Buy investment property sight unseen - Making numerous low offers without actually seeing the properties and then buying only those accepted offers that check out has worked for some investors in the past. Just be sure you have a way out of the contract if need be.

4. Trade or sell to governments - Some "in holdings" in national forests and other public lands can be bought and then resold for a profit or traded for more valuable land. Typically you can trade land in key areas for public land which is not directly adjacent to the rest of a forest or public parcel.

5. Flip houses - There a few basic ways to do this, ranging from speculating and doing fixer upper to just flipping the contracts.

6. Subdivide land for housing - This basic land development idea is one of the topics covered in the free real estate investing course linked to at the bottom of this page. Like all ways, it comes and goes with market conditions.

7. Real estate options - Buy an option on land that is prime for development and then sell that option. That is just one way to make money with a smaller investment through options.

8. Option hill tops - This worked for one man, who found those who needed radio towers (it would be cell towers now) to lease the land to in order to get financing to close the deals.

9. Mobile home parks - The cash flow is usually very good, and since renters risk losing their home if they don't pay, you get paid. A chapter in 69 Ways to Make Money in Real Estate covers this (link at bottom of this page).

10. Note brokering - Also covered in the "69 Ways" e-book, this involves finding notes that owners want to sell and taking a cut for arranging the sale. You never have to invest a cent if you do it right.

11. Build to suit projects - Common in commercial properties, you find a buyer, build what they need and lease it to them.

12. Foreclosure homes - Buying and selling foreclosures was a decent way to make money even before there were so many of them.

13. PRE-foreclosure - In these deals you look for a way to help a family that is facing the loss of their home or high credit score, while also making a profit for yourself (but do try to help if you want a good reputation).

14. Change the use - Buying property and changing its use to make it more valuable is one of the topics covered in my free real estate investing course (link at bottom of this page). You might make a old duplex into a larger one-family home, for example, or vice-versa, depending on what's in demand.

15. Buy FSBO properties - Buying from owners who sell on their own (FSBO = for sale by owner) can mean getting a deal, which means more profit when selling.

16. Buy low and sell high - The most basic strategy of all, but there are some tricks to how to do it, of course.

17. Flip apartment buildings - The key, as explained in 69 Ways to Make Money in Real Estate (link further down), is to buy cheap and increase the income within a year or two. Income properties sell based on income, so raise that and you raise the value.

18. 1031 tax exchange - A way to avoid capital gains taxes when selling an income property (talk to a good tax attorney to do this right). You can buy and sell throughout your life without paying on your gains.

19. Condo conversions - Covered in the free course linked to below, the idea here is to convert apartment buildings into condo units to sell for a big profit. This is not a popular way to make money at the moment, but it could make a comeback.

20. Slumlording - Focus on low-income housing for high cash flow while providing a much needed service. Don't let the name scare you--people need cheap housing.

The list continues here: Methods 21 - 40


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