Real Estate Incomes: 3 Types To Know About
Over 3 million people in the US have real estate licenses, but did you know there are other ways to get involved in real estate to earn an income?
A lot of people think that getting into real estate to make money is easy. Real estate yearly income reports that you might hear about in the news, for example, tend to be pretty high. But how do they do this?
The main way you can get real estate passive income is simply by waiting for the property to appreciate and increase in value over time. Of course, if you’re looking for a faster way to get some cash, you have other options when it comes to your real estate investments.
Keep reading below to learn about the three main ways that people earn real estate incomes.
Considering Rental Income Options
Basic rent is a huge part of residential property income. If you have a property with tenants, they will pay you a fixed amount every month that you can use as income. Short rentals, such as Airbnb or vacation rental websites, are also an option to consider.
In addition to that, you may also own commercial properties that also require basic rent. These also often have fees for commercial tenants related to contractual options or requests.
Lastly, if you own land, some companies can give you royalties for structures or discoveries that they make on that land. You can also rent it out for different types of production, such as agriculture.
Earning Income From Working Your Residential Property
Another option is to start buying and flipping properties. This is when you buy a property, add some high ROI repairs or fixes, and sell it again for a higher price. These methods specifically take a little bit of know-how, so be careful if you haven’t done this before.
It’s also important to note that even if you’re the owner of a property you’re renting out, you still are making money on it over time. The value of the property will increase and as you make upgrades over time, you’re actually leading toward a higher payout later when you sell.
Money From Trusts and Securities
If you’re looking at investments strategically, you can consider investment alternatives that go a step farther than simply owning property. Your main options include:
- Real estate investment trusts
- Mortgage investment corporations
- Mortgage-backed securities
- Real estate investment groups
Each of these works a little bit differently (and have different structures), so it’s a good idea to talk with your financial advisor to get more information.
Real Estate Incomes Exist in Various Forms
If you’re interested in obtaining real estate incomes, you have several options to consider. Not all of them are the right move for each person, so think carefully about what you want to get out of your property before you take the next steps.
Did you find this information useful? If so, be sure to take a look at some of our other articles next.