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Real Estate Investing — What It Is, How It Works - Education - Nairaland

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Real Estate Investing — What It Is, How It Works by ReyofEzer: 5:37pm On May 14, 2022
Real Estate Investing is basically a financial strategy that uses the management, ownership, rental or sale of property to make profit.

It's basically you making use of or managing Real Estate in order to make maximum profit.

There are two rules to consider when you're looking into Real Estate Investing.

The Property must increase in Value.

The Cost of owning and maintaining the property must not be greater than the increase in the Property's value.

We'd come back to this later… stay with me.

There are Two Major Branches of Real Estate Investing You Might Want to Pay Attention To.

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Quick Turn Investing (Flipping)

QTI is when you buy property with the intention of selling it quickly.

Here, you don't have the intention to keep the property but you're looking to make quick money almost immediately as you buy it. This is called flipping.

There are two ways to go about this…

Wholesale QTI: [/b]What you do here is you find a good property deal, sign a contract without actually paying and then find a buyer who will pay more for this. Tricky, but effective.

[b]Retail QTI:
What you do here is you find a property listed well below its market value, improve it to get ready for sale and then sell it to someone who is willing to use the building. QED!

The point with QTI is you want to make a sale immediately and have fast profit… You get?

Let's quickly move over to the other…

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Long Term Investing

LTI deals with buying property to rent or lease over a long period of time, gaining both the rent you'd be paid as well as the increasing value of the property over a long period of time.

With LTI, you can't get a quick return and it might take time for you to break even but eventually you tend to make waaaay more than you invested initially (this would require patience at your end).

There are types of LTIs but I won't cover them in this post. That's for later…


Whichever you choose to put in for, you have to ensure you make your findings properly, do a lot of research and find someone who has done it to follow.


Let me know…

Was this valuable to you?

Did you learn?

Do you have Questions?

Let me know in the comments section below.


To Your Success,

Marvelous Obasuyi.
Crownfields Properties.

P.S: I post helpful content on Real Estate on my WhatsApp Status. Connect to me via this link

https:///2349047247076

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