If you’re looking for new ways to make cash, then investing in real estate could be right up your street. If smaller investments are less interesting to you these days, then real estate gives you the opportunity to earn some serious money. Here are three great methods explained clearly to you! Check it out.
1031 Exchanges
This method is fairly unknown to the masses. If you haven’t heard of the term 1031 exchanges, then you may know it better as Starker exchanging. Under Internal Revenue Code section 1031 in U.S law, it is possible to trade one business asset (real estate) for another. The benefit of this is that you’re either exempt from tax, or pay very little of it. This is because the majority of the capital gains are deterred due this 1031 clause. For you to fall within 1031, you must be trading like-kind assets. This means that a property or building must be very similar to the one you are trading it for in terms of its form-factor, etc. Where you make your money is from the fact that your investment is able to grow, tax-deferred. You may have even profited from the swap alone, which is common in some cases. Tax comes into play when it comes to selling it on. However, if you hang on to the property for long enough, and let it gain value, then you’ll only be subject to one tax. This will hopefully be a long-term capital gain rate – this is currently fixed at 15%! This is a great way to get around taxation and use the system to your advantage to make money. You can use this trick as many times as you wish. So, why not check out some 1031 exchange properties and get investing, today?
Renovate & Sell On
Another common real estate money-maker for a lot of people is renovating and selling on at a higher price. A lot of first-time buyers will do this in order to save up enough cash to land their dream home. But also so that they still have enough to get them on the property ladder straight away. By buying somewhere cheap, run-down, yet potential-packed, you could make yourself a small fortune. Especially if you’re handy with a bit of DIY! If you’re willing to live in a building site for a little while, then this could be for you. Gut the house out from top to bottom and modernize it across the board. Bring the standard of finishing up to current scratch and watch the property sell for tens-of-thousands more than you bought it for. This a simple, long-lasting real estate trick that very rarely fails.
Invest In The Right Areas
Finally, it’s now easier than ever to make money by investing in real estate – so long as you do it in the right areas! Therefore, you need to take advantage. If you have an eye for the next hot, up and coming area, then you could make some serious cash. Unlike renovating and selling on, you needn’t worry about having to do up a house or apartment to the higher spec. You could simply leave it untouched and watch its price skyrocket as the area around it grows and becomes more popular. Appreciation is your best friend, here. Study market trends and growth plans for new areas to make yourself a success in this area of real estate investment.
Hopefully, this post has shown you how amazing real estate can be for making money. Good luck out there!
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