What are some ways to make money through investing in real estate? (12 points: 4 points for each correct answer

Options include:

Short sales—this involves purchasing a home from a lender when the mortgagee is behind on payments. Short sales can be a time-consuming and complicated proposition.

Lease options—these are what the name implies. When you lease with an option to buy in a bull real estate market, where prices are rising, you may be able to complete the purchase later at a lower, pre-set price, or make a profit by selling your purchase rights.

Contract flipping—instead of flipping houses, this type of flipping involves the transfer of the rights of a purchase contract to another buyer. If you can locate distressed sellers and motivated buyers and bring them together, you may be able to make a profit this way.

The Bottom Line

There are several proven strategies for making money in real estate. Appreciation, inflation, and income rank high on the list but several alternative real estate investments also exist. Understanding your investments, risks, and whether the overall process is worth it or not is up to you.

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