Real estate investing has emerged as one of the most popular investing options in the recent years. Real estate investing gives the power to the investor to own a physical asset, the value of which gets appreciated year on year. Investing in real estate can be challenging if you do not have much knowledge about the how to find the best properties and bid on it. There are various ways through which you can start earning from making some investments in property such as renting out the unused part of your property, offering your apartment or building on lease for a fixed period of time.
Types of Investment Opportunities in Real Estate Investing
Rental Properties Income
As part of your real estate investing journey, you can start with renting properties that you own or you can simply buy a property on Loan and give it to a tenant on rent. obviously you will charge the rent a bit higher than the monthly cost of interest that you are paying as interest on loan amount. Rental property business can be a headache for some people as it involves continuous coordination with the tenants. Rental properties need regular renovation, servicing and repair of old building material.
A person who owns the property and gives it on rent to a tenant is called a landlord. A landlord earns money from rental income generated from renting the property. The sum of money that is charged as rent depends on multiple factors such as the current market conditions with respect to real estate business. A landlord also makes money from the property through appreciation in the value of the property or asset.
Generating income from sale of rental property is a good side hustle to earn an extra passive income from just renting out you unused apartment or building. You can rent out your properties by easily listing them on online property aggregator platforms and get the clients very easily.
Income from Flipping Houses
A real estate flipper is different from a landlord in one sense that a landlord owns a property for a very long time and the main intention to buy or keep the property is not for investing purpose but to create an asset. Whereas a flipper buys a house just to keep it with him for a very short period of time, until some buyer get ready to buy the house or property a a good profit.
A house flipper generally holds a house for a few months and sells it after upgrading it, when the value of that house grows up and it is possible to sell the house at a good profit. A house flipper generally owns a house with the intention to sell it at a good profit after some time and not with the intention to keep it for personal use or for further investment purposes.
This method of real estate investing is followed by property dealers for decades, they are always in a plan to acquire a property at a good price and then sell it after some renovation and overhauling. Flipping a house is not very easy always, it takes great efforts to look for the perfect buyer to give a good amount of money in return of that property.
Real Estate Investment Groups
Real Estate Investment groups are small group of investors and builders who share a mutual interest in owning and renting properties or giving them on lease. Joining a real estate investment group can be a good option for those who wants to invest in property but do not want to be the landlord and take care of the maintenance of the property.
In this case Real estate investment owner takes care of all the risks and takes care of the property under their name only. The company will be responsible for building apartments, houses etc. and then the investors can buy property through the investment groups. All the headache of owning and maintaining the property remains with the company and investor just need to share a percentage of money with the company on every sale of any unit of properties.
Rent Out a Part of your Building
This is again a very interesting and easy way to make money and start investing in real estate with whatever property you have at the moment. If you are living in your own house or an apartment and you are using only a part of that apartment and not the whole apartment, then there is an opportunity for you rent out the unused part of that apartment. You can offer the available rooms as paying guest to students or travelers as per their needs. you can give some extra services to guests, such as cleaning, laundry, meal, snacks, WIFI, and other amenities.
There is no need to onboard some long-term tenants, you can start it with short term paying guests and students, who will rent the apartment for a few days and leave. This business model can generate good passive income for you from the unused part of you living house.
If you think that the area of the building or the rooms that you are trying to give on rent is of good size then you can even think of renting out the property for commercial purpose which can yield you more money.
Conclusion
Unlike other investment options, investing in real estate is just a matter of time and capital to invest. If you have time and can deal with the household issues that arise at the end of the tenants, you can become a good investor in real estate by following these simple methods. Real estate investing can be a simple game if you have the desired knowledge on how to choose the best properties and take big leaps on your investment journey. Happy investment journey in real estate and other assets creation methods. For more such useful content follow InvestmentGroww and stay updated with the growing world of investing and making big money.
