The Four Ways to Make Money in Real Estate

The Four Ways to Make Money in Real Estate

Gallatin, TN · Member since 2024 · 31 posts · 8 votes

With this year already off and running (can you believe it’s already February?!), I wanted to highlight the four different ways you can make money in real estate:

1. Cash Flow 
- money coming in is greater than your expenses. (Interest rates and equity are key factors for cash flow)
2. Appreciation 
- real estate values double every 12 years. Over time your property value will continue to go up, which you cash out on the sale.
3. Tax Breaks
- I am not an accountant, but I recommend conversing with one to see all of the benefits to owning a rental property. Keep more of that hard earned money in your pocket.
4. Debt Reduction 
- at the very least, another human being is paying down your mortgage and increasing your equity. Yes, you may have to pay some money out of pocket over the year, but someone else has invested exponentially more over that same year. What if I told you that you could purchase your house by only paying for 20% of the property value? Would you take that deal?

If you have any questions concerning these points, do not hesitate to reach out and ask questions!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y

thats basic list one can add.

Value add /  New construction / land entitlements/ Timber / Minerals/ Lending

etc etc.. far more ways to actually make money than just buy and wait for rental income to payoff debtl 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    thats basic list one can add.

    Value add /  New construction / land entitlements/ Timber / Minerals/ Lending

    etc etc.. far more ways to actually make money than just buy and wait for rental income to payoff debtl 

  • Real Estate Agent · Wellington, FL · Member since 2019 · 33 posts · 19 votes
    1y

    Leverage is also very important. I get that having a paid off property is very comforting, but to me it's not the best move if you're trying to grow. 20% down and 3% annual appreciation means you're making a 15% return on your downpayment. 

  • Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
    1y
    Quote from @Jay Hinrichs:

    thats basic list one can add.

    Value add /  New construction / land entitlements/ Timber / Minerals/ Lending

    etc etc.. far more ways to actually make money than just buy and wait for rental income to payoff debtl 


     Good old sweat equity still works  ;)

  • Member since 2021 · 39 posts · 5 votes
    1y

    I have a question regarding how much fix up should be done to sell a property. I am in the process to selling of a property.

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