Multiple industries are built on the foundation of real estate, and there is no lack of opportunity for a hardworking, savvy person to make money through real estate. Whether you have millions to invest or only the change in your pocket, here are some ideas to get you started.
Fix and Flip
While not as simple and glamourous as it looks on TV, there is plenty to be earned through real estate fix and flips. Fixing and flipping requires a significant up-front cash investment, and is one of the riskiest ways to earn money through real estate.
Like most investments, however, increased risk leads to increased returns. A well planned and managed fix and flip can happen as quickly as your rehab team can work and you can sell. You have to understand the local market, the costs of upgrading a property, and have enough of a cash cushion to pay for unexpected expenses.
Many inexperienced flippers come out with a loss, so always do your research and be able to afford to lose a portion of your investment while gaining experience and learning the tricks of the trade.
If you do not want the high speed lifestyle of fix and flip investing, you may appreciate the relative calm of owning rental properties.
With rental properties, the focus is long-term cash flow generation, rather than making a quick buck with a few months’ work. You will not earn a profit for many years, but if you can earn a positive cash flow each month, you can use that cash to expand your portfolio and build a thriving real estate investment business.
Rental property owners come from all backgrounds, and you may be able to secure bank financing on the property. Banks have stricter requirements for down payment and credit on investment properties than your primary residence, so be ready to put down a sizable down payment to get started.
If you want to turn your property into a hotel and join the sharing economy, Airbnb is the most popular choice. With Airbnb, online renters book your property and pay a rate you set. Airbnb takes a cut, and you get the rest.
Some people have built thriving businesses from Airbnb, and others have had less fruitful experiences. Tread with caution here, as some owners have had horror stories with local governments and terrible renters. However, the majority of owners are happy with the experience.
If you own a property at a resort destination near a beach or ski area, you can outsource management to a vacation rental management company.
Hot areas like the California Coast and Colorado Rocky Mountains are just a couple examples of the many destinations vacation renters want to go. If you are willing to give up your property on big holidays, you can earn big!
If you do not have the money to start investing on your own, do not fret. Getting a job in the real estate industry is competitive, but learning property management from the inside is the best way to learn the ins and outs of real estate investment.
Big and small property management companies hire staff, and once you have enough experience under your belt you can branch out on your own to create your own property management company. Save up as much as possible while working as your own boss, and you will be on track to buy a property of your own.
If you are buying or selling a house and are looking to hire a successful real estate agent to help you through the process, take a look at AgentHarvest's list of top-ranking local Realtors in your area. We found these agents by examining their sales track records, awards, rankings, client testimonials and by conducting personal interviews.