A modified approach to this real estate system is called the home reinvestment method. You search for a good home value. You buy and move into the home. You decorate and improve. You add a hefty profit onto your costs while keeping the property continually on the market. You remain in the house until you sell. You take your profit and find another house. Buying and selling your own house minimizes the holding and security costs of purchasing a vacant house. Holding costs during buying and selling can also be minimized by having a tenant in the property who knows that the property is being marketed. To secure the tenant’s cooperation in the marketing process, you may offer them a bonus when the property sells. There are many investors who use this method and double their annual income.
This is only a mere hint of an idea to motivate you toward self education in the field of real estate investing. In real estate, as in any other business, you want to be informed and stay informed. Keep looking at houses. Keep talking to brokers and other investors. Keep talking to your tenants. Keep reading real estate books. Keep up on prices by reading your Sunday newspaper and local real estate magazines. Keep surfing the Internet.
From your foundation of local knowledge, you can build units, convert apartments to condos, or split off buildable lots. You may wish to finance sales, become an agent or form investment partnerships. You should build bonds with local politicians and contractors.
