When it comes to real estate, there are two main ways to make money. You can work in the industry and you can invest in the industry. You can get a job in real estate, or work for yourself, such as becoming an agent or opening a brokerage.
But you can also build wealth through real estate by investing in it, even if your day job is not real estate-related. There’s a lot of money to be made in real estate either way, and there’s enough room for everyone to get a piece of the pie.
Want to know what the best real estate strategies are for making money? Whether you prefer to be hands-on, so you can get the best deals, or hands-off, so you can focus on other things, there’s a strategy available for you.
Keep reading to discover the five winning strategies you need to consider today.
1. Become an Agent
Becoming a real estate agent is one of the most common ways to make a living in real estate, as millions have already discovered. Plus, it’s a strategy you can use on the side of your day job, too.
The best agents can easily make a seven-figure income each year. And you get the opportunity to find your own deals if you’d like to invest in real estate at the same time.
If you are interested in learning more about the industry and want to get the most hands-on experience, this may be the best approach, unless you already have a really high-paying day job.
2. Buy and Hold
The most common real estate investment strategy is to buy and hold rental properties. After buying the property, you rent it out to long-term tenants and hold the property for years to come.
With a house rental, you make money each month through the rent that comes in, but you also make money in other ways. Your mortgage gets paid down by your tenant, increasing your equity. Plus, you earn money through appreciation, since houses always increase in value.
One of the biggest benefits of long-term rentals is leverage. You can obtain a rental loan, borrowing the money to secure your investment.
And if you want to grow your portfolio of rentals fast, you can use the BRRRR strategy.
3. Fix and Flip
Flipping properties is another popular investment strategy. You buy old, outdated properties in good neighborhoods, remodel them for a few months, and then sell them for a profit.
It takes a lot of work but can earn you a full-time living or more each year.
4. Wholesaling
Wholesaling in the real estate industry is one of the easiest strategies to get started with, particularly for newbies without any capital. You are essentially responsible for finding deals and getting them under contract. You can then sell the contract to an investor and earn a small profit.
5. Start a Business
There are plenty of businesses you can start in the real estate industry, aside from being a realtor. You can open a property management company, managing other investors’ rentals. You can become a mortgage broker or a lender. With so much opportunity, there are many ways to capitalize on real estate.
Choosing the Best Real Estate Strategies
There are plenty of other real estate strategies to consider, as well. What you pursue all depends on the amount of time you have to dedicate to real estate, the amount of experience you have or want, and the amount of capital you have at your disposal.
Those looking to build their life around real estate can secure a day job in the industry while also leveraging their experience to invest, rapidly building their wealth.
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