Your investments in Real Estate can give you a monthly income or at least be paid for by your tenants. You may save some taxes and the property can potentially increase its value.



You are free to select the type of property, locale, condition and price that you want to pay. If you want more cash flow, you can buy more units and maximize the length of the repayment.

Or if you if you want to reduce your taxes, you can use a benefit called depreciation to cancel out your income. You can also focus on appreciation by buying undervalued properties and selling them for a profit or you could buy properties, repair them up and sell them for a higher price.

Let us look at the many ways that we can invest in real estate

1. Generating Positive Cashflow

You simply rent out the properties that you purchase. You organize the financing such that the repayment is lower than the rental that you receive and in the process have a net cash income.

Besides the net income, you get tax benefits and probability of appreciation when you do decide to sell the property later.

2. Buy & Sell

You simply purchase properties for lower than you can sell them. You can buy a distressed property that needs improvement, or purchase from a distressed owner that needs out.

When you buy property that needs to be touched up, you must consider the holding cost that includes taxes, interest payment, utilities, maintenance and other costs.

Often when you buy a property from a distressed owner, the property is in good condition. They owner may have fallen behind with payment, need to relocate etc.

3. Lease Option

This method involves controlling the property without taking over the title. You lease the property and either sell it or lease to another tenant until the property sells. This one is a bit more complex and has some disadvantages, such as the inability to depreciate your lease, but you can potentially reap big profits.

4. Purchasing Tax Liens Property

For Tax Liens property, you simply make a deposit as designated and hang around. You get the property if the taxes are not paid in time. Meanwhile, the deposit is guaranteed by the government and you can even earn an interest!

5. Before Construction

You can buy property direct from builders before they are built at wholesale price and sell them at market price later when completed. The advantage of this method is that you do not have to worry about tenants or mortgage payments during the construction.

I hope you now understand the various ways to make money in real estate.