You always hear of people who made their money using property and think you wish you could have done that – starting a few years earlier.
Well, the good news is that it is not too late. Not yet!
All you have to do is empower yourself with the right knowledge, take the responsibility to learn, and then “just do it”.
Sounds impossible? Or too difficult?
The answer is no – it is possible and straightforward, once you know what to do.
Here is a quick summary of some of the different ways you can make money using property.
We are all different, and therefore you should find a way to invest that is best suited to your personality. Not all of us want to become the next Donald Trump, but most of us want to put in the time and effort to learn how to do it.
Start here – make sure you always do the research and double-check the numbers.
The only way to do that and get the guaranteed results that you want is to learn what to do, and the secret is the growth on your money that you invest into a property, not the property itself!
You have to do the calculations and this can be done with a program like the Property Pro Investment Program™. Without this, it will be impossible to calculate the growth on your investment in property.
Make sure that you understand the risk that is associated with each method and property in general before you decide to start making money from property.
Also, make sure that you know how long you want to invest and what your exit strategy is going to be.
Here Are 6 Different Ways To Make Money Using Property:
1. Buy-To-Let
Buy-To-Let is a British phrase referring to the purchase of a property specifically to rent (let) it out.
A buy-to-let mortgage (bond) is specifically designed for this purpose.
This method involves buying a property (using other people’s money, i.e. the bank) with the express purpose of renting it out and eventually making a profit from the rental.
2. Rent-To-Own (aka Lease To Own)
A lease-to-own property purchase (also “rent-to-own purchase” or “lease purchase” or “lease to purchase option”) is a lease combined with an option to purchase the property within a specified period.
The lease regulates how the rental will work out for a set period.
After that period, the buyer has the option to purchase the home.
A portion of the rent is usually set aside in a rent-to-own contract as part of the down payment needed to buy the home.
3. Rent-To-Rent
Very similar to buy-to-let: this method involves renting a property cheaply to rent it out for a profit.
It is crucial to ensure that your lease allows for sub-letting before you consider a property for this purpose.
4. Property Development
A property developer is a professional in the sector of property development.
Some of the responsibilities of a property developer include purchasing land for new buildings, signing leases for existing properties, improving and renovating existing buildings and selling properties.
To become a property developer, an individual should have a good knowledge of the local real estate market and a good head for figures.
5. Property Speculation (aka flipping)
A type of real estate investment strategy in which an investor purchases properties to resell them for a profit.
Profit is generated either through the price appreciation that occurs as a result of a hot housing market and/or from renovations and capital improvements.
Investors who employ these strategies face the risk of price depreciation in bad housing markets.
Investors can execute this investment strategy in several ways. For example, investors that prefer a short-term approach might buy several properties with mortgages and then hold them for only three or four months in the hope that their value will increase. Conversely, an investor can take a longer-term approach by buying a single, moderately priced property and renovating it to “flip” it for a profit.
Take note: Flipping is a high-risk strategy, and we do not recommend you pursue this option unless you absolutely know what you are doing.
6. Renovate to Sell
To renovate a property to sell means you buy a dilapidated house with a lot of potential and fix it up to sell it at a profit.
A good example of renovating a house for this purpose is when you buy a falling-down old house. Then install new wiring, plumbing and fix all the problems, so the house is as good as new.
Summary
As you can see, there is no shortage of methods to make money from property.
With property investments, the more competent you become, the smaller the risk will be.
If you want to learn more about the different ways you can make money using property then book for our next online Property Investment training.
Making money using property
