3 Legitimate Ways to Make Money Investing in Real Estate
The world of real estate can seem intimidating to some, and while many understand the principle behind it, a lot might see it as a risk. However, virtually anyone can get started with real estate, and it’s much less complicated than many might imagine. You have all sorts of options open to you, whether you want to make some residual income, make a quick flip, or have a reliable store of value. Let’s take a look at some of the ways that you can make money investing in real estate.
Home flipping is when you buy a home that you feel is underpriced and sell it fast for a profit. A lot of people assume that flipping automatically has to involve major repairs, but that’s not always the case. In some cases, you might only need to make some minor esthetic adjustments to significantly increase the perceived value of the property.
Another thing you could do is work with local home investors. For instance, you could find great deals and sell it back to companies who will transform these units. Local home investors like SFL Partners, for instance, purchase homes in the South Florida area to renovate and turn into rental properties. They could help take some properties off your hands and make the sale process much easier and faster. Local home investors will usually have an offer for virtually any type of property based on a specific formula. If you can constantly make great finds, this could be a way to get a steady stream of income.
Become a Landlord
You also have the option of becoming a landlord. One of the things that make it a great option is that you’ll be able to get some leverage as you get equity on the properties you buy, which will allow you to make more investments. However, being a landlord is a lot of work, and not everyone is ready for it. There’s also the issue of dealing with bad tenants and vacancies.
Land development is another great option that many people think is out of their reach for some reason. But land development is more accessible than some might imagine. Being a developer is about finding pieces of land that you can develop, and build on them, simple as that. You can decide to start small with a single-family unit or go for multi-housing complexes or condos.
However, you will have to get familiar with zoning laws, and what makes a plot of land desirable. You'll have to consider things such as utility, soil, and water conditions, for instance. You’ll also need to learn a bit about housing design and construction management, entitlements, and sales.
These are all ways any investor can get in the real estate game. All of these options have their pros and cons and could be more suited for one person than another, so make sure that you look them over in more detail, and see which one would be the best for you.