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Everyone wants to make money in real estate, but in actual experience many find it difficult or impossible to know how to succeed. Here are five great strategies to make money with real estate:

Buy and Hold

Say you purchase a piece of property which has units for rent or lease. This can include apartments, single family dwellings, or even bed and breakfast facilities or guest houses. Rental property ownership involves far more than just putting a “For Rent” sign in the front yard. You must be conversant with law and regulations on the subject, as well as zoning requirements and civil right statutes. You can acquire the knowledge to have three cash streams going at the same time. First, you have amortization resulting from paying on your mortgage. Second, your property is presumably increasing in value over time. Third, you have tax incentives. Even if the rental income doesn’t cover the entire cost of operating the property, you may still have a positive cash flow.

Flipping

This strategy is the process of locating a desirable piece of property and a buyer for that property in a very short time. The buyer of the property has the responsibility for financing and takes title to the property at a double closing. You receive a commission for your efforts

Rehabs

The most risky strategy for real estate investment is the rehabilitation and resale of distressed properties. You acquire a run-down piece of property and hope that your repair estimates and budget of available funds will cover the cost of the actual repairs. In addition, you hope that the market for real-estate in the area is remaining stable or climbing.

Commercial real estate investment

Real estate property is considered to be commercial if it is anything over a four-plex size. Since most lenders for commercial real estate want to see experience, it is probably not a field for an inexperienced investor. Because requirements for acquisition of financing for such properties are so stringent, it is a field with little competition.

New construction

In a seller’s market, purchasing a new home while it’s still under construction is the easiest and cheapest way to turn a profit. You can even resell the home before the construction is completed.

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