10 ROADS TO REAL ESTATE INVESTING PROFITS TAMERA ARAGON
To simplify the term real estate investing, there are really only three ways for investors to make money in real
estate:
1.
Real Estate Appreciation and Equity
2.
Cash flow while you own it
3.
Assignments: Payment when you flip a real
estate contract without owning it.
So where do you start? Let’s try to answer this question on every aspiring real estate investors mind. Since real
estate investing encompasses so many types of exit strategies, or I like to call profit centers, it’s important to
study and pick those you are most passionate about. In my Coaching U2 Profit Your Way training I thoroughly
teach on over 24 profit centers, otherwise called exit strategies. The following is a summary of ten of the most
popular real estate investment strategies with their advantages and disadvantages.
1. Rentals or Cash flow Investment Property: These types of investment properties are the ones
which generate rental income. These are mainly apartment buildings and rental houses.
•
Advantages: One of the easier ways to get started, and provides a good long term return on
investment, while also earning monthly income.
•
Disadvantages: Risk of not renting property, leaving you with the mortgage payment and no
income. Property management can be a challenge. You typically will wait awhile to sell your
property so payoff is slow.
2. Lease Option. This is when you buy a
property, then sell it to someone else via a
rent-to-own arrangement.
•
ADVANTAGES
Advantages: You get higher rent, and
the buyer is usually responsible for
maintenance. Cash flow can be good.
•
Disadvantages: Most rent to own
buyers don’t complete the purchase.
This can be an advantage too, but it
does mean more work for you.
Bookkeeping must be done properly
and can be complicated.
DISADVANTAGES