Real states have been one of the biggest ways to produce wealth. There has been an even bigger boom since the start of the pandemic. If you go to social media you’ll find an array of experts and real estate enthusiasts sharing how they’re making an income through real estate.
So what’s stopping you? There are plenty of people that are skeptical about real estate and it’s understandable to see why. In order to buy real estate, you have to have capital, you have to have money.
That is completely true, you do indeed have to have capital. But contrary to popular belief, you don’t need to have a lot of capital in order to buy real estate or even to invest in the real estate industry. No credit, huge amounts of capital, or even major assets are needed. While it’s not a cakewalk to invest in real estate, it doesn’t need to be something that only the rich can afford either. So once you figure out how to invest in real estate, how can you monetize it? What if you already owned real estate, how can that be monetized? These are some proven ways to do just that.
Sell Your Home
If you’re a homeowner, then you could just sell your home. This is one way that plenty of families are making an income. If you sell your home, you can then downsize somewhere else leaving you with extra money after downsizing. A great example would be the migration that’s happening in the US right now. Thanks to remote work, a lot of people from major cities are moving to other areas such as small towns and rural villages. These areas outside of the big city are drastically less expensive than real estate in big cities.
So these families are selling their city homes and apartments and moving to an area with a lower cost of living. While these are great examples, you’ll have to see how the market is in your current area, plus you’ll need to have a plan after selling your house. Don’t forget to make your house the best it can be before selling it too, as you want to make sure the house is appealing for homebuyers.
Long Term Residential Rental
This is one of the more common ways that people are making money through real estate. People are always going to need a place to live in, and this is especially more apparent for cities. So heavily keep the location in mind before you begin this process. So how can long-term residential rentals help you? Well, there are two major perks to it.
The property value will increase over time, so when you choose to sell it you’ll make a nice income. But you’ll be making income from long-term tenants. While contracts can vary depending on the tenant, the average long-term residential rental is around 2 to 3 years.
This is one of the more lucrative ways to profit from real estate. If you live in a high-traffic tourist area, then you can make some serious money this way. Major cities and towns close to national parks are some of the best examples of major tourist traffic. It is important to know that there is some work that has to be involved. This includes making the vacation rental look appealing to guests, such as decorating it in a sort of way that would make people want to stay there.
This includes all the amenities as well, but even the location. A great example of a vacation property would be Door County vacation rentals. They show off all the great amenities their property has and it’s marketed in such a way that guests will flock to it.
This could go under the vacation rentals section as there are plenty of vacation rentals that get posted to Airbnb. But even if you have an extra room or a guest house on your property, it could be utilized for short-term rental to guests. So, if you only have one property and it’s the property you live at, and you have some extra room, then you can utilize it this way.
House flipping has been making massive waves over the last decade, and there is plenty of content on YouTube, social media, and even TV about it. This is where you buy a property such as a run-down house for very cheap. You then look into ways to fix it up and make it livable, and afterward you make a profit from it. There is a lot of work required but it could be a great way to manage it. Just keep in mind that there are some advantages and disadvantages of this.