For a subsequent number of decades, the real estate industry has proved to be one of the most lucrative options for generating wealth regardless of an investor’s financial status. There is a lot of gold mine in the venture, as outlined in the five magical ways to generate income with real estate below.
1. Fix it and flip it
If you are good at leveraging geospatial data tied to the real estate industry, then the fix it and flip it phenomenon is for you. Fix it and flip it is simply a culture that has been around for quite some time, and can be your source of fortune. Upon harnessing the powers of location, all you need are excellent bargaining skills that will land you a property at the most viable price with a potential of yielding large returns on investments upon renovation. Atop that, knowing what the market contemporarily needs in terms of designs could play to your advantage since offsetting your revamped property will be easier. Be sure to check out Realty Management Associates, Inc for options and help!
2. There are hot leads from divorced couples
According to various statistics, there is approximately 50% divorce rate in the US alone, with more than one million couple filing for divorce every single year. As a real estate entrepreneur, you could take the fullest advay good deal that will terminate their marriage within the shortest time possible. Here lie some of thntage of divorce leads characterized by thousands of motivated sellers willing to meet ane most incredible deals you can ever come across in the real estate business.
3. Offer long-term residential rentals
Apart from focusing on the numerous buy and sell real estate options, you could also spread your risks on investments through buying and holding prime residentials. As you hold a property, you could rent it out to long-term tenants with the potential of providing a substantial cash flow over certain prolonged periods of time as per your contract.
This approach of making money comes with two advantages; firstly, you will not only make your down payments but also accrue profits at the same time if you bought the property on credit, this again depends on your bargaining power. Secondly, your property will appreciate in value over time depending on the market shift, which can be translated into a higher liquidation value in the long run. One potential extra cost as well is that you may need home guardians to look after your property when it is unoccupied.
4. Short sales are great options if you aren’t for the idea of lengthy renovations
If you have some good capital base and do not cherish the lengthy renovation hassles associated with the fix it and flip it approach, you can opt for the short sales which requires you to pay for the real estate property in cash after which you can either liquidate at a profit or hold and rent to long-term tenants.
5. Vacation rentals in tourists hotbeds
Finally, this is also tied to leveraging geospatial information as aforementioned. Since tourists usually arrive at their peaks at certain given times of the year, you could invest in vacation rentals in popular tourist destinations and even go ahead and engage the services of a property manager to effectively promote your property during both the high and low tourist seasons.