Real Estate is one of those words that instantly places a picture in our minds. A picture of successful men in suits looking at expensive luxury houses or apartment buildings, cashing in on hundreds of thousands of dollars. Though this is very true and there are thousands of successful real estate entrepreneurs, the reality is that it takes a long time to get there, and a great understanding of what real estate is and how it is transacted to create a profit. For that reason in this article we will be discussing the topic of real estate, what it is, and how you can get in on the fun by visiting a site like www.upnest.com/re/top-real-estate-agents/los-angeles-ca.
What Is Real Estate?
Real estate by definition is the land or any other physical property that is on top of that land. It also includes the air rights above the certain plot of land, with additional ownership of what is underground. This means that almost every piece of land in which you walk, see streets or houses on, is real estate. If you were to purchase a piece of land and found an oil well or some extremely expensive chemical, it would be yours to keep and potentially profit from. So if real estate is both land and buildings, how would you profit from this industry if you wanted to join?:
Become an agent or realtor: This is often the easiest route and the one that people “see” when they hear the word real estate. Almost every agent you see doing their job will be in a suit and tie or will look very professional. Don’t be fooled, however, because there’s a saying that states they are brokers because they are “broker” than you. If you want to become an agent or broker make sure you understand your job and the fluctuation of income.
Invest passively: You can invest in things like Real Estate Investment Trusts where a syndication is created to pool people’s money to then purchase a big asset. Do this if you don’t want to worry about paperwork, due diligence, and everything that goes into a real estate deal. Invest actively: By investing actively you’ll constantly be looking for deals and raising capital from investors to purchase it. Because you’re doing most of the work, you’ll get a large cut of the pie and can negotiate what you give to your investors in return for their money.
Flip property: “Flipping” properties can be done in two ways. The first one is by getting a deal under contract and selling it for a fee to an investor who actually has the money to do the deal. You can also purchase a property and fix it to “flip it” back into the market. Go Big!: If you can pull this off you’ll most likely be set for a long period of time. Become a syndicator and pool other people’s money so that you control big assets like apartment buildings or strip malls.
In conclusion in this article we discussed the topic of real estate and provided five different methods for you to jump into this industry. Just like any other business, before you go 100% into it, make sure to speak to plenty professionals who are actually successful in the industry so you can have first-hand testimonials on what to do and what to avoid. Once you know enough, pull the trigger!