Real estate has created more wealth for more people than any other industry – a lot of millionaires can attest to that. But it’s not always as easy as those guys selling the real estate investing courses would have you believe. It takes some operating capital, a lot of knowledge, a good amount of time, and, above all, a good agent. Let’s take a look, then, at how to make money on real estate in Lufkin, especially from a buyer’s perspective.
When it comes to residential property, there are basically just two ways to make money on real estate: fix and flip and buy and hold. (Your agent can help you find the variations on these two ways that best meet your investment needs and goals. To find out more call 936-676-3516.)
FIX AND FLIP
Owing to a handful of popular TV shows, nearly everyone now is familiar with fixing and flipping. With this method, investors buy properties that promise a profit potential, fix and rehabilitate them, and sell them for more money (sometimes a lot more) than they paid for them. But without some knowledge – and the expertise of a good agent – you risk making very little or even losing money on these deals.
BUY AND HOLD
This is the method that will allow you to make money on real estate in Lufkin that is an ongoing, almost passive income. You will, however, have to put up with all the hassles of being a landlord.
For buying and holding and leasing to tenants, location is key. The property has to be in a location that will assure appreciation over time and where you can find plenty of good tenants. In addition, unless you can afford to pay a variety of contractors and tradesmen, you’ll have to become a jack of all trades in order to make all those inevitable and ongoing repairs and upgrades. But done right, this method will give you a positive cash flow and rental payments every month.
Then there is investing in commercial property as a way to make money on real estate in Lufkin. The profits can be much greater than with residential property, but so can the risks. So after you’ve found a good agent to partner with, here are just a couple of your available options . . .
The great thing about commercial rentals as a way to make money on real estate in Lufkin is that the rents you collect each month will be a lot higher, and you’ll have far fewer tenant hassles – because your tenants will be businesses. If you already have residential rental properties, branching out into commercial rentals is a great way to diversify your portfolio.
Vacation rentals are called-term rentals. And although these rentals are short-term and usually seasonal, they can still generate a good return on investment because vacationers have more disposable income and are willing to spend it on what they want. The downside here, though, is that location is so absolutely critical. If the property isn’t in a location that is attractive to vacationers, then it will never generate much income.
Make Money on Real Estate with Less Risk
The potential to make money on real estate in Lufkin is certainly there, and it could be a lot of money over time. But if you try to go it alone, you also risk losing your shirt ( as well as all your money.)