There are many ways of generating equity but the best way is buying into equity. You can do this by searching for a seller who wants to dispose of his property and that he is willing to renounce his equity for lesser that its full value.
A quick look at the math will demonstrate that purchasing for cash flow works. Let’s start with the purchase price. You decide to purchase a property for ,000,000. You deposit 0,000 as your down payment and earn a 10% cash on cash return on your investment. This investment will pay you ,000 in the first year and as the rent increases, so will your cash on cash return. Plus, while you’re holding the property, your 0,000 loan is amortizing or being reduced by your rental income. This means that you’re recovering your down payment while you pay down the debt.
REI is something that gives you delayed returns. You have to be patient enough to wait in order your property gets appreciated enough, and that can give you amazing yields. It is one investment that can even take a decade or more to give you high returns. In fact if you want to go for some fast returns, try thinking of investing in something else, such as information technology business, BPO etc.
Now is the time to examine all the ways you can market your property effectively. A free listing of your real estate is definitely worth considering. The question is: will buyers in your particular real estate market for FSBO properties respond to a free listing? Many areas are experiencing a glut of properties for sale. Some free listings really don’t get the exposure you really need for your property. Worst of all, your property listing may be just another “face in the crowd” of eager sellers who want the same thing as you.
A lot of people have started venturing into real estate invesment group structures. They go to this means because they believe they will earn money through investing in real estate. But what if you are not looking for a place to buy? Can you still invest in these and see your money grow?
Know when to buy, know when to sell. While having a lot of land seems like a good idea, there are times that you can make a good profit when you sell some of your assets to buy a better piece of real estate. Often it’s better to sell some of your real properties when you found land for sale at a superior location.
Become a member of a real estate club. A real estate club will teach you a little something valuable in the industry and get you into contact with some very important people. A virtual real estate club which could be joined online can be a solution to time constraint in joining a physical real estate club.