Submitted by: Bill Dufrane

Approximately one fourth of all homes sold in 2006 have been purchased as an investment. Returns are almost guaranteed because property values are always on the rise due to a growing world population. There are more ways than ever before to profit from real estate investment.

1. Flipping

In the industry, flipping is a term used to describe the act of buying, fixing up, and then reselling a piece of property. To flip a property in short term investment usually requires a large investment of capital, whereas long term flipping relies on less fixing up and more on the value of the area appreciating over time.

2. Offsetting Costs

Many costs associated with renting the property can be offset even while the home is being renovated. After the renovation is complete but before it is sold, you can rent the property out to new tenants. Of course, if you do that, you are most likely a long term investor. You also have to weigh the hasstles of finding tenants, the damage tenants might cause to your property, upkeeping the property and performing repairs, etc.

3. Snapping Up Forclosed Properties

A great way to make a bigger profit on your real estate flip is to purchase only properties that are forclosing. A forclosure happens when a property owner is no longer able to make payments on a mortgage. These people have likely been evicted from their home and, unable to rent the property, the owner is trying to sell it to recover at least some of their costs. Foreclosed properties tend to be in need of heavy repairs.

4. Investment From Afar

It is also possible to invest in real estate without buying any particular property. Many banks allow people to purchase trusts, bonds, or stocks oriented towards real estate specifically. You will be sure to want to talk to a broker before getting into this kind of real estate investing.

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