10 Ways to Make Money in Real Estate

by | BiggerPockets.com

Steve Gillman wrote a good basic article, Making Money In Real Estate – 10 Ways that outlines ways to make money with real estate. The 10 ways are:

1. Appreciation
2. Depreciation
3. Loan pay down
4. Cash flow
5. Buy Low
6. Sell High
7. Offer Financing
8. Change Use
9. Improve and Repair
10. Sell in Parts

The two points I find most interesting here are:

8. Change use. If there is a higher use for the property, you can convert it to make it worth more to the next owner. Sometimes this means making condos into apartments, or apartments into condos. Maybe converting a home into office space will get the biggest return.

AND

10. Sell in parts. In real estate, the parts are often worth more than the whole. For example, splitting off an extra lot to sell for $30,000 will rarely decrease the value of a home by that much, so you’ll make more money in the end.

Read the article if you’d like more details on the rest of his points.

About Author

Joshua Dorkin

Joshua Dorkin is a serial entrepreneur, investor, podcaster, publisher, educator, and co-author of How to Invest in Real Estate. He started BiggerPockets to help democratize the real estate investing landscape for himself and others, aiming to make it accessible for everyone, regardless of income or education. Today, BiggerPockets is the premier real estate investing website online with over one million members and reaching over 70 million people with the message of financial freedom through real estate investing. Joshua, along with his wife and three daughters, make their home in Denver, Colorado, and spend any time they can traveling, exploring, and adventuring. Read more about Joshua’s story in 5280 and Inc.com.

1 Comment

  1. I like number 9…improve and repair to make money in real estate. Of course, you need to have an eye for the right property and a good understand of the market and its location. Then for the types of changes and improvements that can be made that will increase the value.

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