Have you heard the popular statement ”Real estate investing is the most powerful wealth-building tool available to the average person?” that isn’t a sales pitch just to make you invest, it is reality.
Real Estate Investment is the only commodity that I know of that can create rapid wealth. All other investment’s make money in not as many ways as real estate investment.
Buying and owning real estate is a smart and exciting investment strategy, that can be both satisfying and Rewarding. Unlike stock and bond investment, prospective real estate owners can buy a property by paying a part of the total cost upfront, then paying off the balance, plus interest, over time. While a traditional home finance loan generally requires a 20% to 25% down payment, in some cases, a 5% down payment is all it takes to purchase an entire property. The ability to control the asset the moment papers are signed strengthens the investor, who can in turn can resell at a higher price and reinvest.
Here are four ways you can make money Out of your Real Estate Investment
Once you understand how all four of these income sources work, you will begin to see the great wealth-building power of real estate bought and maintained correctly.
1. Rental Income
This is the most basic way real estate investors make their money. Investors with DIY and renovation skills, who have the patience to manage tenants make their money through this means.
Rental properties provide regular income because people will always need a place to live, and that means getting involved with rental properties whether the overall market is up or down.
Want to be a landlord? All you need is a reasonable capital to finance an up-front payment then paying off the balance as you earn.
2. Vacation Rentals
Vacation rentals is another lucrative way to make profit in the real estate marketplace. Not only can you make some side hustle income from vacation rentals, but you could also make a reasonable amount of money and build up a substantial passive income stream if you’re in a bread and butter neighborhood.
The best part is you don’t even need to own the properties to make money. Some big-name property management companies that specialize in vacation rentals don’t actually own the homes but provide very good consumer experience.
To participate, all you need do is find locations that have a high demand for short term rentals, build relationships with owners in the area, network with others, create systems, ensure utmost satisfaction, go above and beyond for anyone staying at the homes you manage, and see how you can help take some of the time and stress off the present owners existing rental businesses, or if you have a property, list it on a site like Airbnb.
3. Home Renovation Flips
This is also known as real estate trading, it involves buying a property that needs a little (or a lot of) work, making the necessary renovations and selling the house for a higher price. Investors that have an in-depth market knowledge thrive in making money through this means.
Real estate trading has a short time during which capital and effort are tied up in a property. But depending on market conditions, there can be significant returns, even in shorter time frames.
You too can make it in this area. all you need is a good experience in real estate valuation and marketing.
4. Commercial Real Estate
Finally, another way real estate investors make great amount of money is by investing in commercial real estate.
Research records that commercial real estate is one of the most profitable sources for both income and profits in the real estate market. Once you can find ways to add value to the exchange, investing in commercial real estate can be one of the largest income generators you’ll find.
Don’t forget people always need office spaces and retail outlets to run their businesses, these are juicy locations in the real estate niche. As you grow, you can find ways to open up office spaces, shopping malls, develop large scale buildings and more. But you have to start somewhere.
Finally, whichever way you decide to make money from real estate investing, the most important thing is to have an investment strategy and invest in profitable locations in order to reap the full reward of your investment.