Investing in real estate is one of the most guaranteed ways to make money and become a wealthy investor in no time. It is by far one of the most lucrative investment options out there.
Unlike the stock market, for instance, real estate performs much better than stocks in a slow market. Actually, real estate investment is considered one of the best investment sectors that generate income even when the market slows down.
In order to make money really fast in the real estate market, you need to arm yourself with all the information you need about the market status as well as the required knowledge about the inner workings of the real estate market.
Here we give you 5 ways to make from investing in a real estate property.
1- Consider long-term residential rentals
This here is a guaranteed way to make money out of your real estate investment especially if you are renting out more than one property. Look for tenants who are searching for long-term rentals and approach them.
However, in order to ensure your rental will get rented for long periods of time, you need to pick a rental that is located in a sought-after area which lies extremely close to big companies, schools, shopping malls, schools, hospitals ….etc.
Such rentals will guarantee you a regular income stream from your tenant/s.
Long-term residential rentals are known to generate positive cash flow. A positive cash flow means your net profit after attending to all the financial obligations related to the property you are renting such as maintenance fees which you can use to invest in another property or spend it on yourself and family.
2- Invest in vacation rentals
Investing in vacation rentals in a highly-trafficked tourist locale is another way for you to make money out of your real estate investment. Savvy travellers know that the best way to save money during their travels is to resort to a vacation rental instead of paying loads of money on a fancy hotel.
Look for areas that have high demand from tourists in peak seasons so you ensure your property won’t stay vacant during these seasons.
One thing to know about investing in vacation rentals is that there is a high chance they won’t get rented during the offseason, which is why experts recommend lowering your rental cost during the off-season to give your rental a chance to get rented from travellers who only seek such seasons to relax and unwind.
3- Resort to short-term rentals for quick cash
Investors looking for a quick profit should consider short-term residential rentals. Such rentals will definitely guarantee that an investor makes a good source of income on the short-term.
However, you should know that it isn’t easy to manage short-term rental properties for they require constant marketing and extra effort to find good and suitable tenants every one or two or three months.
Short-term rentals are extremely popular these days especially for those who are visiting a certain place for a couple of days and need an affordable place to stay in.
There are tons of online applications where you can manage your short-term rental that is known to have high-traffic from users looking for these type of rentals in particular.
4- Look for a flipper house
Buying a flipper house is always an excellent option for those looking to make tons of cash out of their real estate investment. The most important thing when investing in a flipper house is to look for undervalued homes that need to be renovated then invest in renovating them and selling them to earn a profit.
Profits from investing in flipper houses come from either buying low and selling high (often in a rapidly rising market), or buying a house that needs repair and fixing it up before reselling it for a profit.
Savvy investors know that such investment can be costly especially if they are planning to do repairs then sell; this is why they search for houses at discount prices and ones that don’t require major repairs.
But when buying a flipper house with the intention to repair and sell, make sure that the low selling price is because the landlord is in a hurry to sell for relocation purposes for instance and not because the property’s condition is an extreme mess and the owner can’t afford to fix himself.
5- Commercial real estate rentals
To make the most out of investing in a commercial real estate – especially for first-time investors – consider buying office spaces and renting them out. With the huge number of startup businesses rising these days, the demand for office spaces is extremely high.
Let’s face it, people will always be in need of office spaces and retail spaces all the time to manage and operate their businesses.
Leasing commercial real estate can be far more lucrative than leasing apartments only if you know how to study the neighborhood and evaluate its profitability.
Investing in a commercial real estate is also a great way to diversify your real estate portfolio and diversify your cash flow.