Building wealth with real estate investing is one hot topic that is at the back of everyone?s mind these days with property investment training seminars running advertisements in the major newspapers. This article will highlight three simple strategies to build wealth
Cash Flow Properties
Building wealth with cash flow properties is a simple concept. However, looking for a high rental yield property takes some time and education. Focus on looking for properties in high demand areas with higher than average rental yields. This is critical if you want to ride out the down part of the rental cycle and you want to do a simple maths calculation to see if your current instalment size can withstand the down part of the rental cycle or would it deplete your savings instead. In cash flow properties, you want to find a property that puts a net amount of income into your pocket each month and then go on to find more and more such properties to make you a landlord of even more properties.
The best types of properties are those that look run-down but are actually quite easy to spruce up. Spend some time looking for auction and foreclosure type properties which can be spruced up real fast for a quick resale. Do your homework and inspect the house before you buy it because some of them can be real problematic. Take some time as well to figure out the foreclosure and flipping real estate laws in your state because you want to
Land banking is an interesting concept and basically means that you take the risk of the developer?s land bank and when the developer is ready to build and develop the land, he buys it back from you and usually at a few times the rate that he sold the rights to you. This benefits both parties since the developer gets to free up his initial capital and you get a good return on your investment.
In conclusion, we have covered three simple ways that allow you to build wealth with real estate. Take some action today and start seeing your income rise and achieve your lifelong dreams today.
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