Many people, for generations, have produced a fortune in owning, selling, developing, flipping, holding, wholesaling, managing and renting real estate. Whatever way a person chooses to make money in real estate, there are many options.
Be informed first
Before you jump in and select your method of monetizing real estate, you first need to get educated. There are many laws and rules for real estate investing. Not being educated can cost you time and money. Some people prefer to go to real estate school. Doing so can allow you to become a real estate agent or real estate broker. Some choose real estate school to simply learn the world of real estate.
There are many online sources and schools that have tools and resources for you to learn about real estate. Going to seminars and conferences to hear experts speak is another great way to learn about real estate. Books and articles will be packed with real estate knowledge. Joining the REIA or simply getting information from the Real Estate Investors Association is another way to become educated before you get started. Getting help from advisors, experts, and real estate professionals is vital if you lack knowledge or answers about real estate.
Methods to make money from real estate
1. Buying and Holding
People become interested in real estate because of appreciation. Buying and holding properties is one way to make a lot of money in real estate. Properties appreciate over time. You can buy today, hold for several years, and sell for an even bigger profit. This method is called buying and holding. It is a time tested way to generate passive money from real estate. Plus, this is a method to build generational wealth.
2. Flipping properties
Flipping properties has become a popular method of making a lot of quick money in real estate. A flipper would simply purchase a rundown or abandoned property. They would then fix it up. They would then list it on the market for a profit. Once the property sells, they would garner the profits. They then could put some of these profits into a second piece of real estate. This is called flipping or rehabbing properties. There are many risks with rehabbing properties, so get educated ahead of time before your first flip.
3. Starting a rental business
Another way to make a lot of money from real estate is by starting a rental business. Purchase properties and then rent them out. Use the rent to cover operating expenses and then you pocket the rest. You can build an entire real estate business by buying properties and then renting them. You can do this with both residential and commercial real estate.
Wholesaling is another option where a person can make big money in real estate. Wholesaling is pretty simple and is a cheaper way to get into real estate. Wholesaling involves negotiating contracts for properties. You would simply find a seller willing to sell their property. Negotiate a contract between them and an interested buyer. Mark up the contract for the property with your fee. Once the deal is done, you will collect your fee for negotiating contracts. A lot of people are able to make six-figure salaries doing this.
REITs are an easy way to get started with real estate. It requires no major purchases, real estate licenses, managing tenants, or collecting rent. Instead, it requires purchasing REITs which you will then earn a dividend from. Earning these dividends are easy and simple. These dividends will be earned usually on a quarterly basis. A REIT stands for real estate investment trust. Purchasing a REIT is like purchasing stock in a piece of real estate.
Real estate can be a big-time moneymaker. If you are willing to get educated, ask experts and trusted sources your questions, and work hard, you will be able to create passive income and a nice lifestyle. Comfort can be achieved by being a real estate professional. There are many avenues to starting your real estate career. Some people prefer to just do one single thing in real estate and others prefer to have multiple roles in real estate.
Article Submitted By Community Writer