5 Ways To Make Money With Real Estate
by Arina Smith Real Estate 19 October 2018
Have you been considering how to bring in more money on the side? Are you looking for a complete career change? Whether you want a weekend project or an entirely new path in life, buying and selling, or renting, residential real estate is an endeavor that is as interesting as it is lucrative.
If you are looking to earn from your real estate, there are a number of new opportunities that have come about in 2021. This will allow you to enjoy a premium much more than what you would earn keeping the amount in a bank’s fixed deposit account. According to a leading vacation rental management service, homeowners can earn anywhere between five to twenty-five thousand dollars from vacation rental income alone!
Here are 5 Ways To Make Money With Real Estate:
1. Flip Houses:
This is probably the most common way people choose to enter the real estate market to make money, but it takes some finesse. First, you’ll need to find a house in an already-popular or up-and-coming area. Then, you’ll need enough capital not only to purchase it but to renovate it. This option is best if you know how to do some renovations yourself or if you can get a good deal by working with contractors that you already know well. The key to flipping houses is to work quickly. The longer the property is under your control, the more money you’ll spend on the mortgage, insurance, and tax payments.
2. Become a Residential Landlord:
Another common way to make money from real estate is to purchase a property (or multiple properties) and rent it out. People will always need somewhere to live, and not everybody wants to buy a home. Again, location is important. You might find cheaper properties in less desirable areas, but that also means you’ll have a harder time renting the property out and won’t be able to charge as much per month. In addition to the location, you must consider your responsibilities. Laws vary by state but keep in mind that you’ll be responsible for ensuring the property remains safe for your tenants and must make repairs as needed. Becoming a landlord can be quite lucrative, but it can also be very time-consuming.
3. Become a Real Estate Agent:
If you aren’t interested in buying and selling property with your own money, use other people’s. Becoming a real estate agent allows you to help people find just the right homes for their families, and if you’re good at the job, you can earn quite a lot of money in commission. Guidelines for becoming a licensed real estate agent vary by state, so it is important to investigate local laws before going this route. Once you become an agent, you’ll need to market yourself. Think Facebook, Twitter, and other tech-savvy methods.
4. Turn Your Property Into a Short-Term Rental:
If you don’t want the responsibility of becoming a landlord to long-term renters but do like the idea of rental property, maybe a short-term rental is a better choice for you. Think Airbnb. Travelers are increasingly choosing privately owned options such as the ones on this popular website over large corporate hotels. Turning your property into a short-term rental means you can choose when someone stays in it and when you’d prefer to keep it empty. Look for property in popular tourist destinations or college towns and remember, the closer they are to big events or hotspots, the better.
5. Use Renewable Energy in Your Properties:
Whether you choose to lease your properties to other people or sell them outright, invest in renewable energy. Homebuyers and tenants are drawn to the idea of lower electrical bills and living in a home powered by green energy. It is an idea that is becoming more and more popular. Just ask Peter Foyo. Founding CEO of Principal Standard Group, Foyo has sat on the boards of various multibillion-dollar companies, including Marquette Companies, a business with more than 11,000 rental properties across the United States. He isn’t the only one who understands the necessity for renewable energy, either. Homebuyers, renters, and even travelers are becoming increasingly interested in spending their money on properties that use solar energy, wind energy, or other methods of lowering their carbon footprints.
Before you start looking for properties, prepare for the process. This may mean raising your credit score, taking out a loan to help you get started, and deciding which neighborhoods will be the most profitable. Rushing into real estate investment could cause you to lose money but taking your time to do it right is likely to bring in the big bucks.