Quick profit: Is real estate a good investment?

by Speedprop on July 31, 2018

Is real estate a good investment? Yes, you bet. Real estate investing can generate profit in several ways. For this reason alone, that’s why many business investors regarded real estate as the best type of investment to get into. How about quick profit? Well, that depends. 

What’s quick profit?

What is quick for one individual may not be quick enough for another. The same is true when it comes to real estate investment. Every investor defines quick differently. Monthly rental payments in real estate can be considered quick. With the right strategy, the investors can make a profit from it in just a few days. Notwithstanding, here are some ways to make a quick profit in real estate.

5 strategies how to make quick profit in real estate

• Buy and hold

This is how it works. You buy an investment property and then you rent it out to tenants. The unit that you have bought then became rental property. At the end of each month, you receive constant rental income from such property. Imagine if you have 5 similar rental properties like that? Yes. You’ll earn a lot of money.

• Distressed Sellers

Quick profit doesn’t necessarily mean having rental income. You can indeed make a quick profit by purchasing distressed properties. Distressed properties are properties that are facing pre-foreclosure. The very kind of property that doesn’t attract potential buyers. Its market value is low, the price is unusually cheap and the owners of the properties couldn’t wait to sell them as soon as possible. What do you do? You buy these properties. Renovate them and sell them later at a much higher price.

• Fix & Flips

A fix and flip strategy is another way to make quick profit in real estate. How does it work? You buy a property, renovate them, (fix) and resell it for a higher price (flip). This strategy also comes with a risk. You’ll lose money If the property can’t be sold.  It’s therefore important that you do your research carefully when conducting a fix and flip.

• Wholesaling

Wholesaling works similarly like fix-and-flips but without the purchasing and renovations. The wholesaling is a way to go especially for investors with little money. In real estate wholesaling, the investor doesn’t buy property, but instead, he or she becomes the one that stands in the middle between a seller and a buyer. The investors find a seller who wanted to sell their properties at a price they both agreed. After that s/he (investor) finds buyers who wanted to buy such properties at an entirely new price. The price that’s higher than the original price. And such transaction can be concluded within a matter of days.

• Airbnb

The final answer to is real estate a good investment for a quick profit? Yes and Airbnb. Airbnb offers short rental platform. Guests and tenants only come and rent the property for a very short period of time. Hence why Airbnb is an important consideration in real estate if you want to make a quick profit. For more answers and insightful tips, head over to Blockchainprop’s blog.