It’s a commonly known cliche within the world of real estate that the secret to success is “location, location, location.”
There is a lot of truth to this maxim, but what is physically built at that location is still quite important. If you ever get the chance to invest in real estate and find a property with a great location, chances are that something is already built on it.
Fortunately, there are many ways to make money off of real estate that already has something built on it.
A very traditional thing to do is to buy low and sell high. Just go surfing through the channels on your television any time of day and you are bound to come across a show or two that focus on people who buy foreclosures and abandoned homes at auctions and then flip them. You can do the same with any kind of business, be it commercial, office, or even warehouse. As long as you get a good price, you can spruce up the property and make it attractive to more buyers.
Another traditional thing to do is to buy a property but not sell it. Properly fixed up, many forms of property, residential or commercial, can draw serious rental income. Even if you have to finance the property through a mortgage, the right rental check each month can easily outweigh what you pay the bank.
Savvy real estate investors take it a step further, especially with commercial properties.
They buy, fix it up, and then rent to multiple tenants. An older single store could be converted into a group of smaller stores which collectively provide many streams of income, thus minimizing the risks of losing income to no tenants or those who don’t pay. This can be done in many cases even with residential properties, if a large home can be converted into condos or an apartment or two can be put into a big home above the garage or in the basement.
Once you make serious money investing in real estate, you can possibly have enough resources to finance your own deals for future investments. However, in the beginning, you might need an investor to back you up. Look around a little, and you’ll find that many real estate investments are actually done by groups of partners that all pool money together.