When it comes to real estate there are multiple ways you can make money. Its not just a i sell you buy type of deal. There are multiple ways to get to the bag while using a real estate as a vehicle for income. You just have to know how. So I listed 10 ways to make money with real estate below. I hope you enjoy the post.
- Single Family Rentals
This is one of the more common ways of making money with real estate, you can buy your home and rent it out to some one else and have them pay down the mortgage through the cost of the monthly rent.
2. Rent to Own
This is basically a dream deferred because you can still get into real estate investing but it might take a little longer than you originally planned but its a possibility. you find a land lord that is willing to let you put a portion of the rent to the side for a future down payment on the home.
Once said money gets to the goal of own payment status then you will be able to take out a mortgage on that home and buy the owner out. You can do this and use one of the options listed below to become an investor or land lord yourself.
3. House Hacking
There are 3 different ways to house hack you can purchase a house with a on suite and rent it out to someone else. You can rent out a room to a room mate and you can also rent out your garage as storage space through a app called neighborhood.
You can do all three of these hacks or pick one or a combination of two different hacks.
4. Short term rentals
This option of making money with Real Estate is very good for people that have properties in a vacation hot spot or business locations that people tend to travel to a lot. I wouldn’t have a short term rental If I’m not in a tourist location.
5. Home Flipping
This is great for those that know the games of buying low and selling high. You buy the property for the lowest cost from a property owner that’s willing and ready to off load the property.
Once the property hits escrow they will fix it up and sell the property to an investor or person that just wants to live there.
6. Real Estate Wholesaling
A wholesaler finds a distressed seller, such as an owner going through a divorce or under financial hardship. After negotiating a purchase contract with a below-market price, the wholesaler opens escrow with a small refundable earnest money deposit, then finds another investor to assign the contract to in exchange for a wholesale fee.
When the deal closes, the wholesaler gets paid, and the new owner makes any needed repairs then turns around and sells the home or rents it to a qualified tenant.
7. Real Estate Bird Dog
Real estate investors hire bird dogs to search for distressed property or to find owners selling off the market, then pass the lead along in exchange for a bird dog fee.
While fees vary based on the investor and quality of the lead, fees that real estate bird dogs earn may range from $500 to $5,000 or more.I actually do this in my spare time and make some really good money. My fee is negotiable but it starts at $1000.
8. Private Lending
Private and Hard money lending is a super easy way to start making money from real estate. It’s a little risky but no risk no reward. Because Private and hard money lenders provide loans to people who can’t qualify for financing, or who need a loan to fix and flip a home.
Interest rates are high and loan terms are short, creating the possibility of making some good money in a short period of time. Steps private lenders take to help minimize the risk include requiring the borrower to have a large amount of equity, cross collateralizing the loan with other assets the borrower owns, or even taking a small piece of the deal.
If you need funding for your next Real estate fix and flip or any deal check out the link below and get started today.
9. Real Estate Agent
You don’t need a license to invest in real estate but you do need a license to sell it. This is where a real estate agent comes in to the equation. Being a real estate agent is a easy way for people to get into the real estate game with not much risk.
All you have to do is go to real estate school or take a online course, pass the exam and get your license. Real estate agents have access to the multiple listing service (MLS), which can be a good way to find deals as soon as they hit the market.
Real estate agents typically earn a sales commission equal to 3% of the property selling price for representing a buyer or seller, so the money can quickly add up for an agent willing to work hard in the business.
10. Property manager
The final way to make money on this list is becoming a property manager.This is one of the easiest ways to use your real estate license while you attempt to make other income selling properties. Property managers usually make around anywhere between 8 – 10 percent of the monthly rental fee. in addition to new client start up fees, commissions on new leases and tenant renewals, project management fees for a major renovation, and sometimes markups on repairs work done by outside vendors.
Yes there are other ways to make money while dealing with Real Estate and one size does not fit all but the best thing about real estate is that you don’t have to stick to one way all the time.
If you need funding for your business or real estate deal check out the link below and get your business evaluated.
