There is enormous scope for amassing wealth in real estate but most investors do not earn consistent profits because of a variety of reasons. One key to earn consistent profits from real estate investing is your ability to recognize market trends and implement strategies that are best suited for that market conditions at that time.
Most real estate investors are misled into believing that profit from real estate is derived only from buying very low and selling at overly high prices in an appreciating market. This may be the ideal proposition but it does not work always. You have to also focus on marginal deals where the profit margin may be low but still they are deals that are not to be missed. Buying prime properties at high prices and trying to sell them at much higher rates can be risky and best avoided.
You should aim at a series of quick transactions for your profits to consistently grow and there should be no lull period in between. If you want to invest in a property and then wait for the property value to appreciate well before selling then you can certainly follow that strategy. But instead of idly holding the property, you should rent it for a particular period of time to earn back the initial investment. This form of making profit is easy and will also be consistent if you have enough investment capabilities.
Yet another way to earn profits consistently will be to buy houses that are in disrepair. Most of these houses you will be able to buy at much below market prices. You should develop a team of highly reliable repairers (construction workers, masons, plumbers, carpenters, electricians, interior decorators etc) and use them to renovate the property and then sell for a whopping profit.
You can find valuable information about the latest real estate market trends on the Internet and in various real estate publications which can guide you about all the latest trends. You should always be on the lookout for a property, which is high in demand and will fetch very handsome returns on selling and will give you optimum profit. In fact, you should line up a series of such properties if you want to earn consistent profits in real estate investment.
If you are going to focus only in one area, you may not get enough opportunities to buy and/or sell. You should expand your area of marketing operations to a few prime neighborhoods. Try to concentrate only on the residential or commercial properties and do not try to mix.
Please understand that dealing in commercial properties calls for large investment and your money might get blocked. Chances of your earning consistent profits may not be possible. If you are not operating as a team of investing partners, then it is preferable you concentrate on the residential segment.
The most important thing is to assess your financial position from time to time. Take a look at all your available finances, your current property holdings, your loans and your capacity to take further loans for buying a property.
Dealing in real estate has been a very profitable investment for many people in the past and will continue to be so in the future. The important thing is for you to do your homework and learn the art of consistent profit-making.