The Fastest Way To Make Money In Real Estate
There are many ways to make money in real estate. However, some prove to be slower than others. Here is one quick way to make money through real estate:
Flipping Houses Is the Fastest Way to Make Substantial Money In Real Estate
Even though the business of flipping houses can be risky (especially for first time flippers), it makes up for this risk by offering substantial rewards. According to Attom data solutions, house flippers in the US have generated more than $50,000 in gross profit for flip, in each and every quarter for the past 9 years. This data suggests that if you can pull off a successful flip, there is plenty of money to be made, even if the housing industry is currently experiencing a shortage in supply.
While Attom’s house flipping stats make it clear how much money you can potentially make, it is also important to understand the basic timeline involved in a typical fix and flip. For instance, most investors will aim to complete the entire house flipping process in less than a year, with 6-9 months being a perfectly attainable goal. In other words, it is feasible to flip multiple properties per year, if you have the industry knowledge and project management skills required to do so.
It is also important to understand that when dealing with properties that have appreciated in value, the investor will make the most amount of money when they exit the deal by selling the property. This applies to house flippers and buy-and-hold investors alike.
This is not to say that rental property investing isn’t a lucrative business model. The intention is simply to point out that if your goal is to make money quickly, you should aim to generate as many house sales as you possibly can. House flipping offers a viable way to actually make this happen, especially if you know how to execute high ROI renovations.
Easiest Way To Make Money In Real Estate
You can start investing in wholesaling real estate properties with little cash. It is not the quickest way to get money in real estate, but it is the easiest. Wholesaling is almost the same as flipping. The difference is you will not make any repairs as a wholesaler. What you do is contract the real estate property with the homeowner.
You then put out the word to potential investors. Once you find someone interested, you give the contract to the investor. You will gain the profit made between the money from the investor and the money in the homeowner’s contract. Easy as pie!
There is a catch to this wholesaling business in real estate. You will need a license because it is considered a brokering business. Some states, such as Florida and Washington, are strict, and they find real estate wholesalers. If your state has a problem with this, the best thing is to get a license then practice. After saving enough cash, you can buy the properties and sell them.
Ways To Make Money In Real Estate Without A License
What if you want to enter the real estate game without a license? There is a solution for you too.
Rent Out Your House:
If you were unable to sell your old property at the price of your choice, you can rent it out. Do not let your home sit vacant while you could be making money out of it. You can rent out the house as the land appreciates.
Purchase An Investment Property And Rent It Out:
If you have enough cash, you can choose to purchase an investment property. You do not need a license to rent out a property. The only thing to remember is that the property you get will give you a good return investment.
Do A Live-In Flip
If you are a real estate enthusiast and do not mind doing the job 24/7, this is the job for you. It involves buying a real estate property, living in it during the renovations, and then selling it for a higher price. This method can give you a significant amount of profit if you execute it successfully.
Syndicate With A Real Estate Agent
No license? No problem. All you need is someone with one. You can get valuable insights from a trusted real estate agent. If they can access MLS(Multiple Listing System), then the better for you. You can access information on all the deals that are active for sale. MLS also helps you figure out deals that are still on sale and withdrawn or expired deals.
Through this partnership, you can stay ahead of the curve and analyze the housing market. Additionally, you will get wiser at making real estate decisions. If you walk hand in hand with an expert, you can make decisions faster and get great investment returns.
Short Term Rentals
Renting a hotel is the norm while traveling. But things are changing. People are into short-term rentals, and it can be a great way to earn some cash without a license. If the area of your property is in the city or a popular destination, take advantage of this opportunity.
How To Make Money In Real Estate With No Capital
If you do not have capital, there are some ways you have to invest in real estate.
- Wholesaling– As mentioned earlier, you can always wholesale properties. This is where you put the property under a contract with the homeowner. Once you get a buyer, you transfer the contract to the buyer. You then get money by taking the profit between the buying price and the contracted price. It is not a walk in the park, but it can get you cash if you have no capital.
- Real Estate Investment Trust (REITs) – If you have almost no capital to work with and you can’t meet the need for a 10% deposit when purchasing an investment property (or a fix and flip), Real Estate Investment Trusts could be the ideal solution to your problem. There are a number of high paying REITs that require less than $100 to get started.
- Owner occupant – If you have an enormous house with plenty of rooms, you can rent out a part of it. Finding occupants on vacation rental websites is easy. If you are wondering how to start your real estate business, do not look far. Start with one room in your house, and you can expand later when you have capital.
Real estate investing offers a number of great ways to make money it continues to create more millionaires than any other form of investing. Fortunately you don’t need to be a millionaire from the get go. Instead, if you focus on one or two key strategies and follow all the best practices when executing those strategies, you can make great leaps on your wealth building journey.