Many people have earned a fortune in the real estate market game, and while you may not have your sights set on becoming a millionaire, there are still a few ways that you too can make some decent cash by playing around with real estate.
Although the housing market has seen better days, there are still plenty of opportunities for you to capitalize on the current market. Whether you’re looking to hit it big or make a few extra bucks a month, the following are three ways that you can make money in real estate.
1. Become a landlord.
Being a landlord is a great way to make some cash in the real estate market, especially in today’s real estate market. Thanks to the large amounts of foreclosures, many people are unable to get a mortgage, which means there are more people looking to rent a home. Plus, thanks again to the large amounts of foreclosures, you can usually get a decent home—or even a building to be the landlord for businesses—for a cheap price, making it a less risky investment on your part.
As a landlord, you can reap the benefits of having your mortgage paid for every month as long as you have renters. Once the mortgage is paid off, all that rent money will now be a profit for you.
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Keep in mind that there are laws regarding being a landlord that may vary from state to state, so be sure to educate yourself on those laws before diving into the landlord game.
2. Flip a property.
With all the DIY shows on TV, you easily have the resources to buy an old, beat-up house, put a little TLC and elbow grease into it, and sell it for a profit. With the foreclosures, you can usually find a very outdated home for very cheap. Then, you can either spend the money for a massive upgrade or perform some minor fixes,such as adding hardwood flooring and repainting the kitchen cabinets.
By making upgrades throughout the home, you can sell the home for much more than you bought it for. Just be sure that you’re making smart upgrades to flip the home so that you get the best possible price.
And even if you’re not the DIY type, you can usually hire a contractor to do the work and still reap a profit, as long as you’re smart about which contractor you hire.
3. Become a Realtor.
If you don’t want to make the financial risk of becoming a landlord or flipping a home, you still have an opportunity to make money in real estate. You can do so by becoming a Realtor.
If you’re personable and have some sales qualities, being a Realtor can be a great way to get into the real estate game without the financial risk. Realtors make their money on commission, so if you focus on selling higher-priced homes, you can make a hefty commission just by selling one house.
You will need to get your Realtors license in order to become a Realtor, but this is done by taking a class. Then, you can either work for a company, or try it on your own. See what works, and make the necessary changes to become successful in real estate.