Creative Real Estate Investing: 7 Proven Ways to Earn Money in Real Estate

The real estate investing business has seen significant developments in the last two decades. Thanks to the age of the internet, smartphones and computers that have broken down the barriers associated with traditional real estate methods.

Creative real estate investing is any non-traditional strategy of buying and selling real estate. These strategies can help take your real estate strategy to the next level.

These non-traditional strategies have become an art of investing, where professionals in the real estate industry are always competing against each other on new ideas to achieve a higher return on investment.

Below are 7 creative ways to earn money in real estate.

1. Invest in Short-Term Rentals

Short-term rentals are continuously on the rise, providing an excellent opportunity for property managers and agents to earn extra income. They’re a sought-after creative real estate investing avenue amongst current and potential real estate investors. This investing, however, isn’t pursued as a long-term business opportunity.

Renting a room or an entire investment property for a short period has been one of the most flourishing strategies in recent years. With global tourism on the increase, short-term rentals provide the need of the hour.

Airbnb, for example, demonstrates this investing strategy’s success. This platform allows homeowners and investors to list their properties on the website. It also lets you be as creative as possible, which has seen many millennials rent their homes to help finance their monthly mortgage payments. FlipKey and HomeAway are also ideal sites to list your property for short-term renting.

2. Join Virtual Brokerage

Becoming a member of a real estate brokerage company is a good way to receive leads continuously. A virtual brokerage lets you work from any location.

The top tech-powered brokerage firms consistently generate online leads for their agents. Plus, their charges are often very affordable. This may mean, you don’t have to pay for an expensive office lease if this creative strategy works for you. Some firms even offer real estate professionals their personally branded app.

3. Profit From Short Sales 

Short sales happen when a property owner is behind on their mortgage but the property isn’t listed yet for foreclosure. For this to occur, the parties involved have to reach a transaction agreement since the investment property for sale costs typically less than the existing mortgages.

Short sales can be tricky because you often need to pay for a property outright in cash. Even then, they are better than auctions since you get the chance to visit a site and see the property before entering into a negotiation process.

While short sales aren’t quick, the potential return on an auction can be instantaneous, as you may make instant equity right off the bat.

4. Commercial Real Estate

Commercial real estate is the place where ‘big’ money is, but it’s not an area for everyone. It’s a high risk, high stakes, high reward business.

Digital Marketing Platforms that Real Estate Agents Love

You can run a commercial real estate business if you own a building. The building can be your office, whose value keeps appreciating over time.

Commercial real estate spaces can also be anything from a coffee shop to a dry cleaner. In commercial real estate, you may buy an office space or a building and rent it out to earn monthly income.

5. Fix and Flip Houses

When you’re starting in the real estate business, property flipping can be a good entry point. To be successful in the fix and flip business, you need to have a good understanding of creative real estate investing. Knowing how the market operates is crucial in assessing whether a real estate property is a real deal or a flop.

Flipping means that you buy a property for the sole purpose of reselling. You can buy fixer-uppers and, after doing some renovations, you sell the investment property at a profit.

One of the most important things to remember before purchasing property for flipping is the cost of repairs. So, it makes sense going for distress deals; those whose owners need money on an urgent basis and who often sell their property at a discount. These kinds of deals allow you to make enough profit to cover both the cost of the asset and renovations.

Making money on home renovation should be rather straightforward, provided you understand the potential value and underlying costs. For this reason, some experts advise investors to go for the ugliest homes in the nicest neighborhoods.

6. Work as a Broker

Open an office and recruit real estate agents. Start by bringing in a few agents and grow from that point. Most states will only allow you to become a real estate broker weeks or even months after getting your license. Yet it’s worth the wait.

As a broker, your responsibility will be ensuring all agents aren’t involved in illegal dealings. You’re supposed to fix problems before they arise to earn a fraction of your agents’ commissions, as well as advertisement fees from agents.

7. Turnkey Properties

With this investing opportunity, you don’t have to stress yourself about purchasing a property, managing it, and real estate agent services. This is a good way to make money, particularly if you have a full-time job and want to try your hand in lucrative creative real estate investing.

This is a type of property investment in which an investor procures a recently upgraded property that’s under the management of a real estate company. Then, the company takes care of everything associated with that property, from finding tenants and collecting rent to managing them and selling the property on your behalf.

Try These Creative Real Estate Investing Ideas

As technologies, cultures, and ideas become universal, real estate markets all over the world are opening to new innovations. This makes success as a real estate investor mostly dependent on how creatively you can solve problems.

Today, buyers, real estate agents, and sellers can connect via the internet, meaning creative real estate investing will continue to grow in a way that will benefit investors.

For more real estate tips and advice, check out our blog.

The post Creative Real Estate Investing: 7 Proven Ways to Earn Money in Real Estate appeared first on ELMENS.



source https://www.elmens.com/business/creative-real-estate-investing-7-proven-ways-to-earn-money-in-real-estate/

Comments

Popular posts from this blog

What are the Myths and Risk Factors Surrounding Diastasis Recti?

Things to Prepare When Planning a Trip to the US

Common Reseller Hosting Issues and How to Avoid Them