It’s tangible, it’s solid, it’s beautiful. It’s artistic, from by standpoint and I just love real estate. — Donald Trump
Real Estate is arguably the easiest to understand among all asset classes, while stocks, bonds, gold and cash may require certain priming.
The government cannot save you or your family, or ensure your financial freedom. Set your mind right about earning money. More cash = more freedom! Money itself won’t make you happy, but it will give you the ability to provide a better life for yourself and your loved ones.
You must invest with income streams that give you positive cash flow, learn to leverage your debt, learn to handle inflation and take control of your physical assets.
Real estate sales agent
You don’t need a whole lot of money to become real estate sales agent but both spaces do require you to take a class and pass an exam.
You don’t need a real estate license to buy real estate. The licence is so you can but help other people buy and sell their properties and make commission on that.
They’re usually paid a percentage of the sales price of the home so if a home sells for a million dollars($1,000,000) you’ll typically make between 2-6% of that($20,000- $60,000).
Depending on how many agents are involved in and where you’re located but you’re not just limited to homes, once you get your real estate license you can be a broker of any kind of real estate so you can sell apartment, complexes, office based land.
Real Estate Wholesaling
The second way to make money is by being a real estate wholesaler.
When you wholesale a product you buy for cheap and then you sell it for a higher price and the difference is your profit.
It’s the same with real estate except this time you don’t have to put in any money to buy the property.
You let somebody else do that. to give you a simple example you would enter into an option contract to buy a home for a $100,000.
You are not going to put any money yourself but you’re going to go out and find a buyer for the home and once you do that you’re going to sell down the contract to buy the home for $110,000 and that $10,000 difference is what you get to keep.
If you can’t find a buyer you can tear up the contract and you don’t owe anybody anything.
You’re connecting people who can’t sell their home with people who couldn’t normally buy a home.
Real estate investing
My favorite way to make money in real estate is by investing in real estate.
When you buy real estate for the long term while letting somebody else use your property in exchange for rent payments every single month.
One way to do this is by buying single-family homes. You buy a home and every single day a tenant lives in your home you get paid.
But you are not limited to single-family homes either, you could invest in any kind of real estate. You can combine office space and retail building or an apartment complex.
You buy this property once, then you get paid forever because the tenants use it plus if you know what you’re doing and you buy in the right area then your rent payments are going to go up every year and your property will become more valuable.
Related : How to Invest in Share Market
The fourth way to make money is by working as a property manager or by working with property manager.
You’re hired by real estate investor to manage their investments so you’ll be the one in communication with the tenant to make sure that
- They rent on time.
- The bills are paid.
- The tenants are taking care of the property.
Property management is the good way to get experience with real estate investing without investing your own money because you’ll be the one running and managing real estate investment.
Real Estate Flipping
You’ve probably seen people flipping homes on TV . You find a home that needs a work and then you buy it and then you renovate and remodel it hoping you can sell it for a higher price.
I’m personally not a fan of flipping real estate because it’s so speculative and if you buy a home to flip it at wrong time, you’re pretty much screwed.
You don’t know how much money you’re going to be able to sell the property for and every day you own the property you’re losing money so you want to sell as fast as possible.
That’s why I prefer real estate investing and I prefer passive investment.
Real Estate Development
When you develop real estate you have to be creative and think outside of the box, it’s just like starting a business.
You’re creating something that doesn’t exist and your job is to attract as much customers as possible. More customers you will have and the more money you will make.
Development is different than investing because when you invest in real estate, you’re buying something that already exists.
There’s a lot of skill required to develop real estate because of so many moving parts.
You got to deal with architects, city planners and contractors who all have their own opinion but you can also make the most money because you’re creating something brand new.
So real estate has opportunities for everyone. You just have to find what’s right for you because there’s really no limit to what you can do in real estate.
Like this post? Don’t forget to share it!
Here are hand-picked articles you should read next :