There are many different ways the average person can make money to support themselves and build a comfortable life, such as a nine-to-five job or owning a business. However, anyone looking for the potential to make more significant gains might start exploring real estate investments.
While a great deal of research and some capital can be required to enter the world of real estate and make healthy returns, you might be surprised at the earning potential in some of the following areas.
Commercial Real Estate
Ask any real estate investment manager, developer, and industry innovator, like Investa, and they’ll likely tell you that commercial real estate presents a genuine opportunity to make lucrative returns.
While you might assume that flipping commercial properties is the only money-making opportunity, you can also develop them, add value, and increase your net income through upgrades and renovations. The key to a successful commercial real estate transaction is identifying potential and seeing where you can add value.
Residential Real Estate Rentals
Despite commercial properties being one of the most lucrative property investment options, residential real estate is also high on the list regarding rental potential. Start exploring properties in desirable locations that will be easy to rent out or add value to.
Residential Real Estate House Flipping
Not every savvy investor wants to be a commercial or residential landlord, managing tenants and taking care of their every need. When you don’t see tenant management in your future, you might like to explore residential real estate house flipping.
This can require finding affordable properties with potential, renovating them, and on-selling them to make a profit. To be successful in house flipping, it can be essential to build relationships with industry experts, such as building contractors, to ensure that the properties you purchase will be cost-effective to repair.
Short Sales
While not everyone wants to capitalize on the bad luck of homeowners, short sales can be an option worth considering when you’re trying to make money on a property without putting in a great deal of effort with renovations.
A short sale describes when a homeowner is behind on their mortgage repayments, with their property potentially about to enter foreclosure, and all parties agree to sell it for less than the mortgage owed. While you typically need to pay cash for such a property, there’s potential for lucrative returns without undergoing extensive renovations.
Vacation Rentals
You might not want to be a landlord, but that doesn’t mean you can’t make a passive income from residential properties. Consider purchasing houses in desirable vacation destinations and renting them out on a short-term basis. In many situations, the money you earn from a short-term rental can surpass the potential income from a long-term rental with less effort.
Making money in real estate takes time, research, capital, and planning, but it can be achievable. Focus your attention on the above real estate investment options, and you might be surprised by the profit potential.
