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  • Posted March 20, 2022

A Certified Financial Planner Advises on How to Earn Big Profits by Investing in Real Estate

If you are looking to invest in a way that can meaningfully grow your wealth and give you the independence that you want from your job, then real estate is exactly what you are looking for. No investment has such great returns as real estate, nor is there any investment that is so safe from incredible volatility. Investing in real estate, however, is not always so easy, especially when you are first starting out. Finding the right ways to earn money from your real estate is crucial. Here are three things you can do to earn big profits by investing in real estate according to a certified financial planner.

Take Advantage of Leverage

The first thing that you can do to earn big profits investing in real estate is take advantage of leverage. Leverage is how you can come to control a hugely valuable asset with less capital upfront. Always get a mortgage when you are purchasing a property, this will allow you to put down a down payment, and then take control of the entire asset. If you are a first-time homeowner, you can take advantage of FHA loans, allowing you to put only 3.5% down upfront, so you can get a one-million-dollar property with only $35k upfront. Talk to one of our certified financial planners to discuss your options.

Buy Fixer Uppers

The next key to earning big profits by investing in real estate is to buy fixer uppers. While everybody may want to buy shiny and market ready properties, there is huge profit to be made in buying fixer uppers, refurbishing them, and flipping them. Flipping houses isn’t as easy as it seems, and there are a lot of things that can go wrong. When shopping for a fixer upper, you need to make sure that the structure of the building is fine, and that most of the repairs are cosmetic. This will help you renovate quickly, and effectively, to make the most profit and get out quick.

Consider Vacation Rental

The final thing that you can do to earn big profits by investing in real estate is to consider using your property as a vacation rental rather than a long-term rental. While vacation rentals do require a bit more upkeep (cleanings after moving out, furnishings, amenities, etc.) they can be very profitable, especially if you have property in a desirable vacation destination. By renting out short term rentals like this, you can charge more per night, and it allows you the opportunity to use your property when it is empty more often.

Investing in real estate is a great financial move to make for your long-term financial goals. But understanding how to make the most money possible with real estate is a bit more challenging. Use these three tips to maximize your profit and earn big on your real estate endeavors. Our certified financial planners can help you understand the best options for your situation.

Read this next: Situations That Call for Hiring a Financial Advisor

Contact Tenpath Financial Group for certified financial planning services.