Another way to invest in Real Estate is to buy a fixer upper, upgrade it and put it back on the market. This is the most popular of all the real estate investment methods. Many people see this as a quick way to make a lot of money. Truthfully I have seen more people fail at this than succeed. There is a method to follow that will make you more successful. There are also many companies out there that put on Seminars that tell you all the money you can make like $70,000 a sale. It is true you can make that kind of return if you buy the right home but you can also lose that amount of money also.
First thing to do is to identify a home that will work. I suggest that you find which homes in the price range and the neighborhoods that are selling the quickest. You do not want to hold on to these properties very long. The longer you hold on to them the less you will make especially if you have a mortgage on these investments.
When you go into a home that needs work bring your contractor with you. Tell him what you want done and let him tell you how much it will cost. Add that to the price of the home along with realtor fee’s and closing cost. Once that is done add another $10,000 to $20,000 and see if that home will sell for that price in that neighborhood. That money mentioned is your profit on a home that finally sells for between $150,000 and $250,000. I mentioned these because this is the price range that sells the quickest here in Minnesota. You can make your $70,000 off a home that sells for close to a million dollars. However these homes have an average market time of one year.