How to Invest Money Into Homes

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Invest money into homes by purchasing a house or property in an up-and-coming neighborhood that has room for improvement. Use real estate as a sound investment that will almost certainly rise in value with tips from an investment portfolio manager in this free video on investing and personal finance.

Part of the Video Series: Investing & Retirement Funds
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Video Transcript

So, how to invest money into homes. Well, any time you purchase a home, the money is considered, by most people, an investment. Over time, even during down cycles in the economy, homes are seen as a positive investment and a place to put money, because the house will go up in value at some point, and when you sell the house you've made a gain on the money that you put in there. Let's assume you're looking at homes as purely an investment, not even a place where you may be living. And, a way to that would be to look for a home that is in an area that you see that is up and coming. It's not in a downward cycle. Also, you don't want to buy the most expensive piece of property in that area. You want to find something that's either in the middle, or lower down, because when you come time to sell it, and take your gain, you're not going to want to be the most expensive piece of property there. Those are the hardest to move, many times. So, you want something that you can put some work into, and increase the equity, commonly referred to as 'sweat equity.' So you're in there, maybe refurbishing the property. Renovating it, upgrading it, cleaning it up. And making it more appealing so that when you come time to sell it, you've got something that's worth much more than you originally paid. And that's how you would invest in a home.


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