How to Increase Your Profits in Real Estate

Naturally, you want in the real estate business to make money. You can either do that by rehabbing a house and reselling it or rehabbing it and renting it out. Let's look at both of those options and see where the potential for profit lies.

Purchasing for resale can be risky business. There may be unforeseen repairs - you can almost expect that to happen. What if the house sits on the market for months? What if the value of the property sank while you were rehabbing it? Bye, bye profits.

Is finding a renter any better? You still have the repair cost issues. However, another variable has been added. You have a tenant who may walk out without paying, or trash the house and negate your money and efforts. Then you have to decide whether to rent again or rehab it once more for sale. The variable is whether the property has increased in value and how much equity have you established versus the expenses. Can you hear the sucking down the drain yet?

Here is the dirty little secret. Home ownership lets you play with other people's money. It is called leverage. The market may seem to be on a roller coaster right now, but over the long haul, the National Association of Realtors, who have mapped sales for decades, find that housing prices traditionally rise two points faster than inflation. Unlike stocks and bonds that may appear more profitable, in the long run, the profit in a home can be the better deal. That is, if the market does not crash. In many areas of the country, it is right now.

That is why short sales is the best investment for your hard earned money. You can minimize your exposure on each deal. You can make money quicker and take advantage of volatile markets. How? You can streamline the process with a tried and true system that will get you in and out quicker. With a quick turn program such as the Strategic Real Estate Coach methodology, your profit is not locked into rehab, retail or rent. Instead, it is a tool to help you find buyers geared for a short sale, negotiate with the bankers and make a profit with an exit strategy that works. Instead of running into the normal blocks in the path - seasons, listing the property to sell and having to micro-control the deal, this system can bypass those headaches.

This strategy is much better than other methods: It is less paperwork, less time and a way more people can come away satisfied. You make a good profit fast, a new owner is happily settling in their home, the bank closes their books and the previous owners are free and clear of what was their problem. At the end of the day, everyone is smiling. Not a bad way to make money, is it?



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