Tips On How To Make Money In Real Estate
Real estate is often positioned as the safest and surest way to make money in a changing economy. Without a significant amount of money, though, it can seem like an impossibility for younger investors. For millennials who want to get into the property market, though, there are a few options. Below are ways that millennials can start making money in real estate.
Go for Quick Flips
The best way for anyone to get started in the property market is to fix up a relatively intact home and to sell it for a profit. If you have the money to buy a foreclosure or a home that’s going for less than market value, you can quickly get yourself in the right position to begin developing and selling properties. Though this does require a substantial investment up-front, it can pay off major dividends. Fortunately, many people offer fix and flip loans expressly for the purpose of flipping and profiting off houses like these.
If you can’t make the investment alone, why not work with partners? If you have the ability to put in at least some of the money—or maybe to provide important skills—you can work with partners to make your first investments. This will allow you to buy and flip larger properties, which should allow you to make more of a profit. This is a good first step for those who have the drive but might not have the funds they need to participate in the market.
Go with Rentals
Those millennials who already own homes can make a fairly reasonable profit by working with services that temporarily rent out spaces. While there can be a fair bit of work related to readying a room and keeping it in a state that’s fit for travelers, it’s also a good way to leverage existing investment. This might not be the end of the path to making a reliable passive income with real estate, but it can be a very useful first step.
Buy a Home
Perhaps the surest way, though, that a millennial can make money off the real estate market today is to get himself or herself in a position to buy a home. This allows the individual to start building up the kind of equity that will be necessary to more fully enter the property market in a few years. Though saving the money for a down payment isn’t always easy, those who are willing to stay in one place for a few years might soon find themselves able to sell their homes for more than their initial investments.
The first steps into the property market are always the hardest. Saving up money or finding partners can be tough, but it is worth your time. Once you make that first sale, you’ll understand why so many people are active in this market.
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan