The constant hunger for gaining wealth by climbing the financial ladder is what keeps us alive. Real estate investing offers real estate investors a platform to be making money in real estate.
All investors have to do is follow the footsteps of others before them! Real estate investors who began real estate investing early in their careers, now experience a lifestyle of financial security and even luxury. But how? Invest in real estate, my friend! It’s your path to salvation.
Making money in real estate requires investors to calculate income and expenses and the difference between the two is what you’re making through your real estate investment. Simple. But there are more variables to it along with multiple methods to utilize a property well.
What are the best ways for making money in real estate?
Let’s cut to the chase; here are the best methods for making money in real estate. Whichever one you choose, it has proven to be worthy of your time and money.
Good old-fashioned rental properties
Rental properties are one of the most common methods of making money in real estate. Why? Well, it’s mainly derived from the buy-and-hold rental strategy, meaning it’s a double win for the real estate investor. You make money through rental income and you end up making money through real estate appreciation. The perfect combination to make a real estate heaven. In any case, residential rental properties fall into two categories:
Traditional rental properties
Traditional implies the traditional tenant-landlord dynamic. You will offer an investment property that you have to be rented for the long-term to a potential tenant as a means to making money in real estate. From here on, you will take care of maintenance and expenses while cashing in the rent checks every month. For this reason, traditional rentals remain the most secure rental income generating machine; you know exactly what you’re getting every month. In addition to that, traditional long-term rentals are highly sought after for any investment portfolio, and you must own a few just to get a taste of what they can offer you.
Airbnb rental properties
The newest addition to the rental properties genre is Airbnb rental properties or vacation rentals. How do these work? What most real estate investors and landlords do is list their furnished properties on short-term rental websites and mark up the nightly prices to generate a rental income. Simple, but effective! Short-term rentals have a lower occupancy rate when compared to long-term rentals. That’s mainly because, with long-term rentals, you rent month-by-month or even year-by-year. However, with short-term rentals, guests book on a nightly basis. Airbnb rental properties are the big thing right now, grab your opportunity while you can.
Note: If you’re unsure of the laws in your area or town regarding Airbnb rentals, read this blog to get enlightened: “Where Is Airbnb Legal?”
Fix and Flips
Don’t ever get the wrong idea about fix-and-flips through TV and HGTV, simply because it’s all staged. If you’ve ever had a knack for watching such shows, you’ll realize that the numbers simply don’t add up. Additionally, flipping a house does not and should not contain so much luxury and décor. What successful real estate investors do with fix-and-flips in real life is give the property a makeover in a sense, within a certain budget, and they never fall for aesthetics. Now, that’s surely not the case on TV.
All things considered, when buying a distressed property for the sole purpose of fixing it up, you must carefully plan your investment strategy. This also entails counting for every expense and cost. If you want to know more about fix-and-flips, here’s a blog post to tell you many major points that you’ll have to deal with when it comes to fix-and-flips: “How to Fix and Flip Foreclosed Homes.”
Become a real estate agent
Becoming a real estate agent involves making money in real estate without having to own an investment property yourself. It’s a career choice for many professionals, and the perks are pretty enticing. Of course, becoming a real estate agent requires a state license, but all you have to do is get your state’s pre-license required education and pass your license examination.
Getting your license is not the only obstacle in your way, however. Becoming a real estate agent requires communication skills and personal generation of constant motivation. If you think you have what it takes, read this: “Real Estate Agent Pursuit of Client Happiness – 10 Ways to End Up with Happy Clients.”
What real estate agents have found useful to reach their goals is making use of real estate investment tools and conducting a real estate market analysis. This can simply help both the real estate investor and the real estate agent to get their facts straight. With Mashvisor’s real estate market analysis, expect the best of the best and get it. Real estate investors can use the investment property calculator to find analytical metrics such as ROI, Cash on Cash Return, and Cap Rate. Whether you’re a real estate agent or a real estate investorhttps://www.mashvisor.com/blog/investment-property-calculator-success/, click here to know what Mashvisor can offer you.
Real estate wholesaling
You might hear the word real estate wholesaling every once in a while, but it’s a lot more common than you think. Both beginner real estate investors and expert real estate investors have utilized it to generate wealth.
The entire concept behind real estate wholesaling falls under finding undervalued properties and contracting them from the owner. Subsequently, the wholesaler advertises and searches for the right buyer. Once a deal is made, the wholesaler assigns the contract to the new buyer and makes a nice wad of cash along the way.
After all, real estate has proven to be a stable and lucrative investment choice. Ultimately, finding the right real estate investment strategy to match your strengths and be making money in real estate for you is what matters. Just make sure to begin saving and investing for your future! It’s never too early, so start today!
Start making money in real estate now with Mashvisor. Look for and analyze the best investment properties in your city and neighborhood of choice by clicking here.