5 Smart Ways to Profit from a Hot Housing Market Story

Rental properties have a number of drawbacks and while poorly prepared investors risk their equity if they overpay on a property, the strong housing market suggests that with preparation, there are plenty of opportunities to be found.

No other investment allows an investor to get control of such a large asset while only putting down a small percentage of the purchase price, say 20%.

That small cash investment may yield a cash-on-cash return of more than 20% annually – and that's before any tax benefits or price appreciation.

Even in a sellers' market, seasoned real estate investors  use these techniques for making money.

However, there are different ways to invest in real estate, they range from simple stock purchases to fixing and flipping houses and everything in between.

Each has its benefits and drawbacks so, here is a quick guide that can help you profit from the housing market.

Investment Properties

Buying an investment property is a straightforward way to make money in the housing market. Buy a house and rent it to long-term tenants or invest in a multi-unit rental property. You could consider purchasing a vacation rental or a property that you can rent out for a short period.

TIM THOMAS

HOUSING MARKET TRENDS

Investing in Real Estate or Buying a New Home?

Learn About Emerging Trends In: Mortgage rates  Buyer demand Home values Real estate investor trends

Real Estate Investment Trusts (RIETs)

A real estate investment trust (REIT) is a form of mutual fund which invests in real estate. A commercial property portfolio or other real estate assets are purchased using money raised from investors.

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