There are a lot of alternative that you can do to put your money to work in order to get more incomes. You can make investment in multiples instrument like CD, Bonds, Stocks, you name it. But it is said that 8 of 10 ten millionaires come from the real estate business. Any additional money you get is good for early retirement, college tuition or to spend in any hobby. The main idea is that you have your money making more money for you. Everything in the world has a risk, however you should know that there is a lot of money out there. An advice is that if you want to put your hard earned money into real estate investing, you should learn or be advise by an expert, so you will be an educated guess and know actually what you are doing, you will be making a lot of money if you learn how.
In real estate you may have income instantly, but is not the usual way. Mostly people invest for the long range. The great amount of people like to both alternative. I have a friend that begin investing in a lot when the economy was depress, but it was located in a premium position. He bought this dirk cheap from a commercial bank. He waited one and half year and sold for four times for what he paid for. This is an astonish return on an investment, but I will say that this kind of deal are one or two in a life. Then after he used this amount to buy two properties in an auction, they are apartments buildings, improved them and rent it he get a steady income month by month and got his money back in five years, that is more than you can have in a time deposit..
Obviously if you want to be in this business for the long run, as we said, you can properties and then rent it to others. It takes more work and risk, because you have to deal with tenants in a daily basis, and also you have property depreciation, but if your properties are in a prime position your “plusvalia” will greater. You also have regular maintenance costs, and property tax. But, if you make your numbers correct and have a positive cash flush after making the maths, and as time pass you have a quite numbers of properties, this business is good and really pay off. Many real estate investor when have enough properties, can retire early or work less with a pretty cash from their rentals. As my friend I talked about he made more money in real estate that in his daily business.
Like in any other business you want to start you should have a seed money to start. Maybe you start buying a property with a loan, but it is getting harder in this day, however you always could find a cheap property, in auctions or foreclosures. You should have the time to look very well. Someone that can help you can be a professional appraiser, a civil engineer or an architect who is working in his field, no an academic one. He may give you the right advise, because is better technical prepare, and sometimes things looks worst cosmetically than they are, you should pay for this outsourcing. Remember, you are putting your money and risking it. A good advise is that Maybe some new in this business will like to buy and sell quickly, or as happen in the market the flipping, that is not good for this real estate business, because it creates a lot of speculations, and prices get deflated in a near future., Renting for steady cash flow month by month is the one the best thing you can accomplish in this business. Remember there are always persons who need a place to live