I want to begin real estate developing, but it seems like you already need to have a lot of money. Who has seriously done this already and reaped great benefits from it? I need someone who can sort of guide me in my ventures?
You buy a crappy looking house for 250,000-300,000, remodel the house (have a state of the art kitchen, finished basement etc.) then sell it for $500,000. That way you make 100,000 in return.
What capital are you starting out with? If you have $10 mil, then development or commercial is good. If you have $5,000, you should start with something smaller like tax liens or tax deeds and build your capital. You could also look to 'borrow' money and invest it and get higher returns for it.
The key to making money in real estate is to be educated in the various aspects that will determine whether you can make profit on a property. You have to be able to know realistically what a property can be sold for, and if the work that you will put into it is worth it. You have to take all the factors and weigh them out. Remember location, location, location. Yeah, sure you can buy a bigger house in a not-so-great area for cheap...but then you will have to sell it cheap!! Even if you fix it up. You have to look for the house that are in the nicer areas....for a low price, then when you take the time to fix it up..you can make your money back and much much more. Be careful when you find properties though...dont jump into something too quickly without thinking anything through...but on the other hand....dont dwell on it too long, as you may lose the opportunity. You have to be savvy in this business. It will come naturally eventually....But keep in mind that to make awesome money in real estate....you have to work your butt off. Maybe work with an agent, they will be able to help you make the most on your money. If you dont have much to start off with....there are also plenty of ways to invest what you do have, until you have enough to invest on properties alone. Remember...it takes money to make money. Start small and you will be making tons of money in no time. Feel free to email me with any questions...i'd be happy to help you to be successful in the real estate business.
