Ever since the global economy took a turn for the worst during 2008, many folks have looked toward nontraditional ways of making an income. From hedge funds and investing to working odd job and cost segregation services, now more than ever people have different sources of revenue.

Investing in real estate is not any different. Here are a couple of tips on how to make it big in the real estate market and to make money while doing so, as well as the most common mistakes to avoid.

Raw Land

One of the most obvious ways of making money off underdeveloped land is, of course, developing real estate. While purchasing land does not produce cash flow, it can be improved to add value by building a commercial or residential building on it.

Appreciation in raw land can also be found in valuable minerals or materials discovered underneath the surface, such as oil, gold, or any other type of gemstone.

Residential Properties

Becoming a landlord is no easy feat, but it does come with a lot of investment opportunities if you do it right. Research the market that you are looking to buy in, including home prices, routes, schools, shopping centers, playgrounds, and more. You can either purchase a single home, a home redeveloped into apartments, or an entire apartment unit. If you’re not sure which one has the greatest value for your budget, you can obtain guidance from Kime Realty, a Michigan-based real estate business, or other similar companies.

Commercial Land

Commercial land increases in value due to its location, development, improvements, and area demographics. Retail real estate is a very hot market in today’s world, as many merchants are still trying to find landlords to lease them brick and mortar stores at reasonable prices.

House Flipping

If you want to get into house flipping, it takes a bit of elbow grease, as well as creative thinking. Flipping a house entails that you buy a fixer-upper, make it a beauty, and then turn around and sell it for more than you paid on the original property.

Mistakes to Avoid

Here are some of the most common mistakes to avoid in real estate:

• Not doing the proper amount of research on an area or market
• Not sticking to a budget or not formulating a budget at all
• Underestimating the cost associated with owning a rental property
• Thinking the property value will appreciate

There are many ways to hit it big in the real estate market. From investing in raw land that has expensive minerals to buying a fixer upper and turning it around, you can make a pretty penny if you go into the real estate industry. Just remember that you have to do the proper research on the demographics of a market and stick within your budget.