Real estate is one of the industries that will always make investors money. Regardless of recessions, everyone needs a place to live, so it’s a safe bet that the market will always bounce back and prosper. Many people think they need to be wealthy in order to begin investing in real estate, but that is just not the case anymore. By using creative methods and managing your funds wisely, you can start investing immediately. Here are 4 ways you can make money in real estate without being wealthy.
Long-Term Residential Rentals
Everyone needs a place to live. Find a location that is likely to hold value or increase in value over time and buy while the prices are still low. The more appealing a location, the more likely you are to find long-term tenants which will provide long-term income. This can be more expensive upfront, but will provide a stable profit over time, especially if market values increase.
When venturing into a lease on a property, find one with an option that allows you to buy. This works best when the real estate market is climbing because you will create a set price where you can later purchase the property regardless of price fluctuations in the area. If the market climbs significantly once your purchase the property, you would also have the option to sell at a high profit.
Flipping houses has become an international sensation. While there is tons of money to be made here, it is a more expensive way to do so. If you already have knowledge of the real estate market and have a background in renovation or interior design, this could be a great option for you. Opt for the ugliest homes in the nicest neighborhoods and expand from there as you build capital. If you’re new to the flipping gig, talk with a financial advisor before committing as the costs can sometimes outweigh the profit.
If you already own or can find an inexpensive home to buy in a highly-trafficked tourist destination, you could set yourself up for some serious income. Don’t want to commit to buying a vacation home? You can still make money. Use your network and build a reputation as a vacation rental manager and earn income that way. It may take more work, but either way you will be earning extra income. Signing your property up for rentals through Airbnb or Vrbo is quickly becoming a lucrative business that requires little to no costs on the homeowner.