Do you know who John Jacob Astor is? He's the first multi-millionaire in the United States of America. Pretty impressive considering this was in the early 19th century and started from a fur-trading business. But, what's the big deal? We have tons of Multi-Millionaire's in the USA today right? No big deal...
John Jacob Astor - Real Estate Multi-Millionaire
The reason we mention him is because he built his fortune not only on fur-trading, but also on real estate. The very first person to make more than a million dollars in America, did it in real estate. The reality is that you can still do it.
How To Make A Million in Real Estate
There are a number of ways to make a ton of money in real estate. You can always get into property management, home inspections, etc. But we want to focus in on the buying and selling of property and how to use this to make a fortune.
The most common way of making money in real estate is by buying investment properties. These properties are the kind of homes you buy fairly inexpensively, maintain and fix up, and rent out to those who cannot or chose not to own a home. Rental properties essentially. Usually these properties run less than $100,000 and can be rented out for more than $500/month. A duplex is a great way of building up your investment properties! This is more of how John Jacob Astor made his fortune.
Flipping properties is another way of making a lot of money in real estate. By buying a property that has a lot of work that needs to be done, you can often get the home for considerably less than what it could be worth. The ideal here is to buy the property cheaply, fix it up quickly, and then sell it for a moderate profit, factoring in the cost of the home, repairs and materials, time invested, and value of the homes in the area. This form is a little more tricky and requires some careful mathmatics to avoid the investment becoming a liability.
John Jacob Astor focused in on investment properties (buying properties and renting it out for businesses/people to use), allowing him to continue to add to his collection of properties in an area that was rapidly growing (New York) that allowed him to continue to draw a profit from each of the properties. However, either of these is an option in residential real estate.
Want tips on how to go about doing each of these? We've got some materials we can give you to help you invest wisely. Give us a call at 765-404-5095 for more information!