One way of making some extra income is through investing into real estate. It can take time and work to do it, but if you put the effort in it really can pay off pretty nicely. Here are three different ways that you can use real estate in order to make some extra income.
1. Become a Landlord
The easiest way to start investing into real estate is to simply go out there and buy houses (or apartment buildings) and rent them out. By doing so you become a landlord and the difference between what you collect from rent and what your bills are is your profit.
And that profit is only going to get bigger as you pay down the property and get it paid off. So, it is kind of a longer term approach to investing and passive income.
2. Buying and Then Flipping Houses
This is a simply strategy that is based on the strategy "buy low sell high". What you do is find someone who is in a house and is willing to leave their house for less then its value. Then fix up the house and sell it for more then you put into it.
3. Tax Liens
buying tax liens for high returns is actually a possibility. Tax liens are a very interesting investment that can pay off pretty nicely.
When somebody does not pay their taxes those taxes get turned into tax liens and are auctioned off. If you buy a tax lien then you will be reimbursed at a later date with a higher investment return added onto it after the money is eventually received from the tax payer.
If the tax payer doesn't pay their taxes by a certain point in time the IRS will take their property and give it to the investor that did pay the taxes.
What this means is if you do your own research beforehand and work to make sure that the tax lien that you bought is actually backed by a property then you really aren't taking on any risk of not being compensated one way or another.
1. Become a Landlord
The easiest way to start investing into real estate is to simply go out there and buy houses (or apartment buildings) and rent them out. By doing so you become a landlord and the difference between what you collect from rent and what your bills are is your profit.
And that profit is only going to get bigger as you pay down the property and get it paid off. So, it is kind of a longer term approach to investing and passive income.
2. Buying and Then Flipping Houses
This is a simply strategy that is based on the strategy "buy low sell high". What you do is find someone who is in a house and is willing to leave their house for less then its value. Then fix up the house and sell it for more then you put into it.
3. Tax Liens
buying tax liens for high returns is actually a possibility. Tax liens are a very interesting investment that can pay off pretty nicely.
When somebody does not pay their taxes those taxes get turned into tax liens and are auctioned off. If you buy a tax lien then you will be reimbursed at a later date with a higher investment return added onto it after the money is eventually received from the tax payer.
If the tax payer doesn't pay their taxes by a certain point in time the IRS will take their property and give it to the investor that did pay the taxes.
What this means is if you do your own research beforehand and work to make sure that the tax lien that you bought is actually backed by a property then you really aren't taking on any risk of not being compensated one way or another.
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For more on ways to invest your money visit this page on different top Real Estate Investment Strategies
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