Making Money With Real Estate

The many ways of making money with real estate include not only the various types of property. Of course you can make money with land, apartment buildings, homes, commercial buildings and more. But with whatever type of real estate, there are different ways you’ll make your profits. Some of those ways, and how to maximize them, are listed below.

1. Pay-down on the loan. Equity builds with every payment you make. If you get the lowest interest rate you can, more of each payment will go towards the principal.

2. Cash flow. Buy income property the right way, and you not only have your tenants paying all the costs and paying down the mortgage loan, but you also have positive cash flow. As a rule, just don’t buy properties without cash flow.

3. Value appreciation. Sometimes making money with real estate can be as simple as holding on and waiting. For the most appreciation in value, however, you should buy in an area where demand is growing faster than the supply.

4. Tax depreciation. After all the tax law changes, you still get to declare a loss for depreciation that doesn’t really exist. Saving at tax time, means more after-tax...