The global real estate market is massive, complex and confusing. It’s also full of opportunities for people who are willing to think creatively about how they can make money in this field. Opportunities to invest directly in real estate are limited, but the industry offers plenty of other ways to make money. The real estate market requires a lot of initial capital to invest in properties or build new ones, but there are plenty of opportunities for people with smaller pools of cash as well. Working in the real estate industry may not be right for everyone, but that doesn’t mean you can’t find a way to make money from it. Here are 5 ways you can make money in the multi-billion dollar real estate industry:
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Real Estate Investment Trusts (REITs)
REITs are investment funds that specialize in real estate. It’s easy to confuse real estate funds with funds that invest in actual properties, but the two are very different. Real estate funds own partial shares of properties. For example, if you invest $100,000 in an REIT that owns 10 different properties worth $1 million each, you’ll own a 1% share of all 10 of those properties. Once you own a share of a property, you’re entitled to a portion of the rental income the property brings in. Of course, you’ll also be responsible for paying your share of the mortgage on all 10 properties. REITs are a great way for people who don’t want to deal with the challenges of property management to make money in the real estate industry. REITs offer low-risk and reliable returns. REITs are publicly traded, so you can sell your stake in the fund whenever you want. REITs are especially attractive to people who want to make money from real estate but don’t have the initial capital to invest in properties.
If you would like to learn more about investing in REITs, check out this article to see if this investing option is best for you.
Co-Owning Properties For Income
If you want to make money in real estate, you have to start by owning real estate. This can be as simple as co-owning a property with one or more partners. You and your partners can co-own any type of property, but it makes most sense to start with commercial properties. Commercial properties generate income every month, whereas residential properties only generate income when people move in and start paying rent. Commercial properties are much easier to find and buy than residential properties. If you can find a commercial property that generates enough income to pay the mortgage, you’ll make money every month without lifting a finger. Co-ownership is a great way to start investing in real estate with little to no money. However, make sure you know the laws in your state and follow them to the letter. This way, you’re protected in case one of your partners wants to break the contract and take the property away from you.
Develop Real Estate And Rent Out Rooms
If you want to invest in real estate and make money from it without having to buy a whole property, you can develop an apartment building and rent out the rooms. You don’t need to own the entire building. You can take out a mortgage to fund the construction of a new building and then find tenants to rent out the rooms. You can even use short-term rental platforms like Airbnb to make extra money off your rooms while they’re unoccupied. Once the building is complete and tenants are living in the rooms, you can start making monthly rental payments on the mortgage you took out to fund the construction. Depending on the type of building you construct, you can even use government funding and grants to help with the costs. There are a number of organizations that provide low-interest and even no-interest loans to people who want to develop properties and then rent them out.
Become A Property Manager
If you want to invest in real estate without actually owning the properties, you can become a property manager. This is a great entry-level position for people who want to work in the real estate industry but don’t have any experience. A property manager makes sure that rental properties are maintained and that the landlords get paid on time. You’ll also be responsible for finding new tenants when people move out and making sure they pay their rent on time. Some property managers work for a company, while others work for property owners directly. Working for a company is great for people who want to break into the industry and get trained. Once you have some experience and know what you’re doing, you can start working for property owners directly and make significantly more money.
Create Software That Helps The Industry
If you have computer programming skills, you can make money in the real estate industry by creating software that helps people in the field. There are a plethora of problems in the real estate industry that desperately need to be solved with software, from managing property rentals to streamlining the purchasing process. If you have the skills to create a solution for one of these problems, you can find a way to make money in the industry. You can find clients in the industry by attending networking events or reaching out to people in your social circle. You can also create an online product and sell it through a marketplace like ClickBank.
Conclusion
The real estate industry is massive and complex. It’s also full of opportunities for people who are willing to think creatively and come up with ways to make money in the field. Opportunities to invest directly in real estate are limited, but the industry offers plenty of other ways to make money. The real estate market requires a lot of initial capital to invest in properties or build new ones, but there are plenty of other ways to make money in the industry without owning a cent of property.
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