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Historically, Real Estate has shown to be an excellent source profit through the increase in investment property value over time. Of course, one cannot predict that this trend will always be true, and it varies significantly by area.

The secret to successful Real Estate investing over the past decade has been simple: buy property, then sit back and watch it rocket up in value. Real Estate has become a profitable investment opportunity that equally invites investors with small and large capital. When it comes to making money in Real Estate Investing, there are really only a handful of ways to do it. This brief overview was designed to help you understand the basics of Real Estate and how successful Real Estate investors work in order to maximise their profits. The three primary ways investors make money from real estate are:

* An increase in the property value

* Rental income collected by leasing out the property to tenants

* Profits generated from business activity that depends upon the Real Estate

With Real Estate you can make money in many ways, I can name those 4 off the top of my head, and there are many more.

Rental income: That one is the main source of profit investors are going for when buying a rental, and doesn’t need an explanation.

Buying low: You turn an instant profit if you manage to buy a property for under market value. Think foreclosures, quick sales, and awesome negotiation skills.

Selling high: You can make extra money if you stage the property to attract buyers over market value. With stocks, you always buy and sell at market value. With Real Estate, you can try to beat the market.

Renting to businesses: Businesses are a different type of tenure and rents are generally higher. They are also safer if you choose a well known business to rent to.

Real Estate has always been a dynamic and evolving business. More so in changing economic times, Real Estate has to adjust and develop new ways of doing business. Since housing and shelter are of primary importance, real estate is not the type of business that can shut down until the economy recovers. The players and the way of doing business will change, but never less new opportunities are created.

The Real Estate industry is prime for investors now. You can buy homes cheaply and it’s easy to find renters to cash flow it now. When home values increase again, there will be nice equity to profit from upon sale.

The bottom line is, Real Estate is still a good investment for those with a solid plan and the intention of building long-term, not short-term, wealth.