is it investing in the house and making it look better? how do real estate agents make there money. i know some are extremely successful and i don't understand how they are so wealthy.
Mostly flipping. Short sales. 1031 There are tons of ways to make money, but if you have not started this is not a good time to jump in unless you have a lot of money to get started with. This is a great time to grab inventory and rent it out until the market turns again.
First okorder / To stop this dishonest business practices. One day and soon i hope there will be a mandatory, county ran MLS that is publicly assessable, only then will there be a fare and honest housing market. Till then good luck, on even being able to find most of what is for sale.
You okorder /dreamloanusa Real Estate investors make money in many different ways... Purchasing homes that are 20-30% below their value through foreclosure sales, or distress sales, or someone who just needs to sell in a hurry at a discount. They then turn around and sell it for market value. Another is picking up a home that they want to rent out. This work with multiple properties. Rich Dad (robert kiyosaki) is very rich from this. Lets say you buy a house that is worth 100,000 for 90,000. The mortgage payment is 600.00 per month, the Insurance and Taxes are another 125 per month. The house is costing you 725.00 per month. But you can rent out this house for 900 per month. You are pocketing 175.00 per month of income as long as you have it rented. Investors pick up 5-10 houses like this a year. After a few years you can see how the money each month comming in really builds up. Now lets say in 5 years, that house you bought for 90K is now worth 175K, and the amount owed because the mortgage has been paid down is 85K if you choose to sell that property, you now made the extra cash each month off the rent, plus now 90K in profit from the sell of the house. If you owned 5 New homes a year, and they all appreciated like that in value, now you just made 2.25 Million Now there is a lot to learn to do that. But thats the basics. Real Estate agents make money basically from Helping someone buy a house, or sell a house. Lets say a house is selling for 200,000 The Agent who is selling it usually will get 3% of the sales price from the seller when it is sold. That would be 6000 in commission. The buyers agent would also get 3%. Granted it depends on how the contract is set up, but thats the basics again. There is no set standard on what commissions are being paid. its between the listing agent and the seller of the home.
Investors an make money on houses in various ways, buying when the market is good, renting it out and allowing equity to grow, while getting some or most of the mortgage paid. Many buy and flip it within 30 days, which gives them their best shot at not having to pay many of the fees involved in the transaction. Others buy fixer uppers, short sales or foreclosures, keep it, flip it or renovate so that they can increase the value. Some do much of the work themselves (for the highest profit), others hire contractors. Realtors only do well if they sell very expensive homes and that is because the commissions are ridiculously high or, if they sell many, many homes. Not all realtors do well and some can't manage to sell one house. Sometimes, a large realty company will give someone two years or more to try because they aren't losing anything but, people are either are good at it or they are not. It is ironic how some realtors can make a really good living because it does not take any kind of degree to be a realtor. You can be a non-educated high school drop out. A short realtor course and a test (that practically anyone can pass) licenses you. However, if you can't listen to clients and realize what they want in a home or if you can't sell a home, you won't make it. Nobody is going to give you a listing without experience and initially, you will do a lot of driving, showing clients homes.
