More Bang for Your Buck: Real Estate Secrets

WSVN -- When it comes to getting rich off real estate, there's no better example than Donald Trump.

Before he was tearing down contestants, Trump was building up skyscrapers. Today, his estimated worth is $3.7 billion dollars.

Now, for most of us, Donald's dough may be out of our league.

But as just about all homeowners know, real estate is the real deal. New condo owner Michelle Hovorka believes the value of her place has increased $20,000 dollars since the beginning of the year.

Michelle Hovorka: "I'm very proud of this place especially because of all the work ive done. it makes me very happy and very proud."

But she could be happier and wealthier.

Real estate investor and author Robert Shemin encourages homeowners to buy additional property if they can afford it.

Real Estate Investor Robert Shemin: "If it works with one house, it can work with two or three or four."

If money is tight, Robert suggests recruiting a partner to help seal the deal.

Robert: "You have the energy to find these deals. They put up the money, they borrow the money. And you partner the deal and split it."

But buying and selling aren't your only options. Once you own a home, renting out the place can produce huge dividends.

Robert: "In the long term, owning and holding rental properties is one of the best wealth builders."

As for short term, consider something called quick turning. That's when you reserve property with a down payment.

But before closing the deal, you sell it to another buyer for a higher price.

Robert: "You put a property under contract, you haven't bought yet, you haven't borrowed money. You haven't closed, but you have the rights to it."

Or consider buying into what's called a real estate investment trust. It's a mutual fund that invests in malls and apartment buildings.

Robert: "You are kind of a limited owner. Kind of a stockholder in these large REITs. And over the past few years a lot of them have done well because real estate has done well."

Michelle knows she's done well with her condo, but she's confident she can do even better by saving money and making the right investments in the future.

Michelle: "I'm very hopeful. The experience of buying this place has taught me a lot so it makes it easier to try other things."

Keep in mind if you are going to rent, plan on a 20 to 30 percent vacancy and repair rate.

Contact: lgarrigan@wsvn.com