INVESTMENT STRATEGY
HOW TO MAKE MONEY
17 Ways You Can Make Money Investing in Real Estate REAL ESTATE INVESTING REQUIRES PATIENCE, TIMING, AND A WILLINGNESS TO GET CREATIVE.
by Luke Babich
7 SHORT SALES Short sales are a way to
vacation rental platforms. This is a great idea to start building cash if you live in a popular area such as a major metropolitan area or near a vacation destination. 4 LONG-TERM RENTALS Long-term rentals provide perhaps the most traditional path to real estate investment. Becoming a landlord by renting a new property to long-term (a year or more) renters can be a stable way to build equity. There are pitfalls to this investment, but if you find the right tenants, it can be an easy way to get started. 5 COMMERCIAL PROPERTY RENTALS Compared to residential properties, commercial property rentals generally require more money to start up, but they can be quite lucrative in the long-term. It is critical to understand everything from property values to foot traffic when getting into this type of investment. 6 RENT-TO-OWN A HOME While not quite as straightforward as buying your own home outright, a rent-to-own situation is a good way to enter into real estate investment if cash is scarce and your credit isn’t great. And on the other side of that, offering seller financing when you sell a property not only returns the favor for cash-poor investors but also adds to your profits in the long run.
I nvesting in real estate is a solid way to build generational wealth. Here are 17 ways you can make money investing in real estate—plus eight ways to get started with less money than you think. 7 MOST COMMON TYPES OF REAL ESTATE INVESTMENTS 1 BUYING A HOME It seems pretty straightforward, but buying your own home is the first piece of property you should invest in. If you buy with an eye toward getting the most out of your home’s value, this one property could be the start of a diverse and expansive real estate portfolio. 2 HOUSE FLIPPING You might buy a distressed property and plan to live in it as you rehab and flip it. The profits on this first flip may not provide a full-time salary, but the process will help you gain valuable experience and set you up for your next move. Remember, the cost of selling a home eats into your profits, so make sure to account for that as you budget your flip. 3 AIRBNB/VACATION HOME RENTALS Some people begin real estate investing by renting out some or all of their own home on Airbnb or other
purchase a distressed property at a much lower cost than its value. A homeowner who is unable to pay the mortgage can ask the bank to accept a short sale—a sale for less than the mortgage. This has been a highly competitive arena since the recession in 2008, but there are still good deals to be found. Some short sales may be in bad shape, but others might need only cosmetic improvements. 10 LESS COMMON, BUT STILL PROFITABLE, REAL ESTATE INVESTMENTS 1 BUYING AND SELLING LAND “Flipping” land is less common (and less understood, even by seasoned investors), but it can be an incredibly lucrative process. The main advantage of this investment? Since fewer investors understand how it works, there are fewer competitors—and there’s more money to be made. 2 SHORT-TERM RENTALS Many investors shun short-term rentals because of the risk involved with so many tenants. But there are many ways to make this a safer and more profitable bet, including: ● Renting furnished properties for higher prices.
12 | think realty magazine :: march – april 2023
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