How to Make Money in Real Estate

by Contributing Writer; Updated September 26, 2017

Making money in Real Estate is a very rewarding career path. Like any investment that you make it goes hand in hand with some risk. People have been making money this way for decades.

How to make money in Real Estate

Step 1

Conduct a Google search on a school in your city that offers a crash course to help you obtain your "Real Estate" License.

Step 2

Once you enroll in the class, make sure that you study. The test is not easy, and most people fail it the first time that they attempt it.

Step 3

Congrats! You passed, now it's time to find a house that is selling below "market" value. Do your research and determine how much you can afford to pay contractors to spruce up the house.

Step 4

Find a lender that will finance 100% of the property. By doing this, it will allow you to keep your cash for improving the home and carrying costs. Carrying cost are the costs involved while you make all the changes that you need to. Don't go over board. This is your first deal. It can take up to a year to sell a home in this market.

Step 5

Once you have made the upgrades, hire a "Real Estate Appraiser" that is familiar with your area. Find the new value of the home and put it back on the market. Now that you have your license, you can keep the transaction fees to a minimum.

Tips

  • Make sure that you trust the lender that you are working with. Try to get a loan with no early payoff penalty, as this can eat up all of your profit.

Warnings

  • Selling a home in this market can be tough. Make sure that you have enough cash reserves to pay the mortgage on the home for one year. Once you sell the home, find another do it again. You will develop an eye for a great deal.