If you’re looking for a way to make money in real estate, you’ve probably been told that the best way is by listing and selling property. But there are so many other options! Here are 5 great ways to earn in real estate:
1. Real Estate Investing
Real estate outpaces inflation and it actually goes up historically more. Some areas historically are six, seven and eight percent a year, you’ll have your burst scenarios that will grow by 20%. Even though this is the first way to make money in real estate, you should be aware that if all you’re doing is buying a home because it appreciates in value, you could be in serious trouble if you need to sell it and it suddenly depreciates. It could take years before it recovers, so yes, it appreciates on average over time, but you should be careful with your timing.
2. Become a landlord yourself
Rental properties spin off a cash flow after you’ve covered your liability like the debt or the mortgage.Maybe there’s a couple hundred dollars of expenses but there’s also positive cash flow every month so this is actually a great way to earn in real estate.
3. Property Management
The reality is if you are going to play in the game of real estate, you could hold a realtor’s license, a loan officer’s license, a title’s license, a property management foot where you can earn a commission or a property management fee. You can earn thousand dollars on a basic single-family home for just writing the mortgage of it for some people
4. Petty Cash
You can put vending machines or laundromats next to your property or apartment complex. That’s right, sometimes your real estate comes with these side benefits. These little side businesses can be a great way for you to make some extra money.
5. Equity
Equity is the difference between the total price of the property and what you pay for it. So if you buy a piece of real estate for $100,000 but it’s worth $120,000, then you’re getting that project at a 20% discount. That means that if you sell it for $120,000, you’ll make a profit of $20,000 (the difference between what you paid for it and what it’s worth).