With a troubled economy, many investors are looking for the best rate of return on their investment. Today, the best rate of return is coming from real estate investments. The rates of CDs, savings accounts, money market accounts, etc. are at record lows and average less than 1 APY. Investors are skeptical of placing their investments in the stock market since the crash in 2008. One way to jump into the real estate market is to actually become a licensed real estate agent. Agents facilitate a sale by representing the buyer or the seller, or sometimes both (depending on state laws regarding dual agency). An agent can do this by finding a willing, able, and ready buyer for a willing, able, and ready seller. Average commissions range from 4 to 7, depending on market area.

If becoming a real estate agent isn’t for you, another way to get into the real estate business is to become a flipper. A “flipper” is an investor who purchases a property for immediate resale and profit. The rate of return on flipping houses can be very generous depending on if there’s good deals to be had, particularly foreclosures or homes that have sat on the market for extended periods of time. Before choosing to buy a home to flip, there are several factors to consider. Is the neighborhood an up-and-coming one or one that is in decline? If repairs are needed, are they able to be completed within a respectable budget? Are there problems that can’t be fixed (such as poor location, sinking foundation, etc.)? How many homes are for sale in the neighborhood? When flipping houses, it is important to create a budget in the beginning and stick to the budget. Going over the budget means less net profit in the end. It is also of utmost importance to be aware of what buyers really want and appeal to greatest pool of buyers. If improvements are being made to the home, stay practical and neutral.

Whether you choose to become a real estate agent or flip houses”there is income to be made from real estate today. Good luck!The information doesn’t stop now. Keep looking: Real Estate For Dummies – Who’s In Control Of The Value System