Real estate, without any doubt, is one of the highest-grossing businesses in the world. Talking honestly, it has worked wonders for so many people. It has produced more millionaires than any other profession. It has been just like a flicked mistress, you may love it while some may hate it. It has worked wonders for many but some people couldn’t make their way in this field. Yet, people are adopting this field as a full-time profession and earning a colossal amount of money with this.
Like all other professions, investing in real estate also demands proper research, planning, and a properly devised strategy. The basic and most important thing is you must be aware of what you are doing and what you want to achieve. Investing without planning, research, and knowledge is just a waste of time and money. So, investing in real estate is a tricky thing but not that difficult. This article is written for you to develop an understanding of real estate and how to earn money in real estate. Now, this is the most frequently asked question, how to earn money in real estate. Well, this article includes 10 smart and effective ways to earn money in real estate. Real estate works similar to the concept of cash flow. Your income must exceed your expenses if you want it to be a positive or profitable cash flow.
However, there is something more about this article. This article will not only answer your question “how to make money in real estate?” but, it will also be answering another query and that is “how to make money in real estate with no money?”. Isn’t it exciting and persuading that you can actually make money in real estate with no money or any investment? Well, you will find those methods or ways that will help you to make money in real estate with no money.
Let us have a look at some effective ways of making money in real estate:
- Long-term household rentals: The fact that you need a roof over your head is undeniable. People or families need houses or apartments to live in. Some people may be rich enough to afford a personally owned house or apartment. But, most of them cannot afford their own properties. So, renting a house or an apartment for the long term is one of the most common or most practiced methods. This method has a two-way income approach. One, you can earn a continuous and increasing income every year as rents generally increase every year to a hike in inflation rates and other factors. This helps you to nullify the effects of inflation in your own personal life. The other benefit is that your property will have its worth increased over a period of time. So, if you find yourself in a difficult position and you want to sell your property, you will be able to sell it at higher rates.
- Flipping a property: Flipping is a very common and effective way to make money in the real estate business. Flipping simply means to purchase a property with an intention to sell it at a higher price to earn a profit. This needs some digging and research. How can you sell a property at a higher price within a few days or months of purchase? Well, for that, you need to find a right or distressed seller or a seller in a hurry and a right motivated buyer. If there is someone who wants to move out to some other place and want to do it quickly or there are other reasons which are forcing someone to sell than this might be an opportunity for you. Later, you can sell this to someone who is moving in and needs to find a place quickly. For this kind of approach, you need to be at the right place at the right time and it is up to you how good can you be while doing it.
- Flipping renovated houses: This approach has taken the real estate business by storm. This trend or culture is getting viral day by day. People are earning millions by flipping renovated houses. There are damaged, burnt or broken properties and their owners may get demotivated or distressed and may be willing to sell the property at a very low cost. This mainly happens because they may not have enough resources to cover up the damage. Mostly, these kinds of damaged properties are sold at a very lower price. You can buy a property like that and a renovation of that property can get you a very handsome profit. Greater the damage, greater is your chances to earn higher profits, that what Matt Larson has learned with time. Matt Larson has successfully flipped almost 2000 properties in Illinois and Iowa.
- Mortgaged properties: There are a lot of people who mortgage their properties for loans or other purposes and then due to many reasons they find it very difficult to repay their debts. A person facing such a situation might look for other options including selling that property at a lower price. All you need to do is pay the lump sum and you can buy a property at a lower price and sell it with some huge profits. This is even a better way than flipping a renovated house because renovations need time while this approach can get you instant profits.
- Rentals for vacations: People love to spend their holidays at enchanting and breathtaking places. This opens a window for those who are interested in real estate investing. If you can buy a property at such a place then you can earn some “real profits”. The reason for that is, people love to spend their off time in calm, pleasant, less noisy and peaceful places. They are always very much willing to pay higher rents for such causes. Generally, you can buy a property at such places at lower or cheap prices. Yet, not everyone can buy such properties even at lower prices. Moreover, people do not like to invest a huge amount in a place where they just want to spend their vacations. So, they look out for rentals. You can cash in and earn a handsome amount if you can have a property at such a place.
- Agricultural Real estate: There is a very significant number of those countries where agriculture is the main source of income for most people. As far as real estate investing is concerned, this can be a very handy opportunity to make money in real estate. Prices of agricultural lands are very low as compared to properties used for residential or commercial purposes. You can buy such properties with low invest and it has various benefits attached to it. You can buy agricultural land and rent it for a specific time period. With this, you can earn income at regular intervals while keeping your investment (land) safe and secure. On the other hand, the price of your property will keep climbing with time because real estate is the only business where prices always follow an upward trend unless there are disastrous crises happening in the country. More importantly, you can sell your agricultural land whenever you want.
- Renting a property for commercial purposes: If there are humans somewhere, then, it is guaranteed that there must be a trading system there. Trade, commerce, business, these are some activities that are happening everywhere in the world. One of the most famous and widely practiced modes of real estate investing is renting a property for commercial purposes. You can rent your property to a franchise, shop, restaurant, shopping mall, school, and so many other options. Income and profits generated through commercial real estate are higher than other sources of real state. The commercial real estate business is very flexible. Even if you can not afford to buy a “huge shopping mall” or a “giant restaurant”, you can still buy a shop in that shop there and rent it out to earn money. You will always have the luxury to sell that shop whenever you want and that too at a higher price.
These were some points that answered the question “how to make money in real estate” and these are widely practiced and accepted methods but you might be thinking about the term (how to make money in real estate without money) that was mentioned earlier and the above-discussed methods need a handsome amount of money to work with. Well, here are some of those tricks that will help you to make money in real estate with no money or a very little amount of it.
- Leasing a property: If you have thought about real estate investing but you don’t have enough lump sum amount then leasing a property can be a very handy technique. Let us say, you want to buy a house but it is too costly for you to buy at once. Then, you can lease that house. There are certain benefits to this approach. You can pay installments and then at the end of the day, you will be the owner of that property. This has another advantage that you will pay less for certain property or you can buy a property at a discount. Let us say, you are leasing a property that has a worth of 50,000 USD and you will pay installments in 5 years. Now, if you buy that house after 5 years it worth will be more than 50,000. This means you are buying that property at a discounted value. Now, if you are worried about your installments, then, there is a solution to that. You can rent that property to someone else. That way, you can generate income and pay your lease installments easily. Once, the property comes under your ownership, you can do whatever you want. Even if you want to quit that lease agreement, you can sell the purchasing rights to someone else.
- Renting a rented property: If you have a smart and a thinking brain, then you can make money in real estate with no money at all. How? Let us say, you have rented a house or apartment and you will have to pay a certain amount of rent. If, you can find the right person or who needs to be in a place that you have already rented, then, you might cash in this opportunity. You can further rent it out for a higher amount of rent. People are earning so much with this trick. They find the right properties and the right people for that. It needs a little or no investment to start. This can earn you a lot of money but you have to be smart for it.
- Rent out a portion of your property: Let us assume that you own a house and you are living in it. But, you have a spare space or rooms that either you are not using at all or using them rarely. What if you rent that space and you can actually earn money with it. Honesty, If you are not renting such vacant rooms then you are actually suffering a loss. This needs no investment at all and it can help to generate a handsome amount of money. People all over the world are doing this to reduce expenses and generating new sources of income.
To start a career in real estate, you don’t need a lot of money but must have a thinking mind. You must be aware of the trends in the market and you must do your research properly. If you can do that, you can make money in real estate even with little or no money. Kent Clothier and Dean Graziosi, these two guys are the perfect examples for someone who wants to make money in real estate. They started with almost no money and today, they are very famous and successful real estate investors.