By: Catherine Wray
Flashy t.v. shows, countless magazine features, and Pinterest boards, have made real estate investing more popular than ever. Whole t.v. channels dedicated to flips, rentals, and renovating homes, real estate investing has never been so much in the public eye. With everyone talking about earning money with real estate, many are starting to feel like they are missing out.
Earning money with real estate is a great way to grow your passive income, retire early, and build your own fortune. Of course, that is all if you invest in the right real estate properties. While different real estate investments present various difficulties and investments, it’s important to choose the types of investments that work best for your portfolio and strategy. Investing in real estate presents its own risks and rewards, so always do your research and find the best opportunities.
Thankfully investing in real estate is easier than ever. Follow these easy tips to maximizing your earnings with real estate!
Maximize Your Earnings With Rentals
Rentals are a great way to build your passive income, and can be the perfect opportunity for beginners to expert investors. From renting a bedroom, a house, or a multi-family unit, rentals offer many different types of opportunities for investors to maximize their earnings.
When choosing a rental opportunity, one of the biggest choices investors will have to make is whether it will be a short-term or long term rental. Long term rentals, are your standard rental agreement, generally about 12 months leases. Long term rentals may require more maintenance, and finding the right tenants for your property is key, but generally will have steady payments, and are easier to maintain long term. Real estate investors sometimes use private money lenders to fund the repairs for their properties to make more money off them long term.
Short term rentals, such as vacation rentals, or Airbnb can have leases that last from one week to one night. These can be real money earners in well-traveled areas but can be harder to keep full and to keep money flowing from. For those who are investing without properties, this is a great way to get your feet wet for renting!
Here are more ways to maximize your earnings with rentals:
● Airbnb: Perfect for one night rentals, perfect way to start building a passive income.
● Vacation Rentals: have a property in a must-see location? Vacation rentals are a great way to build passive income seasonally.
● Long term renting: Whether renting a home or bedroom, long term rentals are perfect for building a steady passive income. With longer lease terms you can see a steady influx of income with this type of rental.
● Multi-Family Rentals: Renting to multi-family or residents is a great way to get more bang for your buck. Whether you buy multi-family units, duplexes or more, serious investors maximize their earrings with multi-family properties.
Maximize Your Earnings By House Flipping
Real estate investors love to maximize their earnings with house flipping. House flipping, is when an investor buys a property that is in need of repair, makes repairs to the property that helps maximize its value, and then sells the property for a profit. House flipping is a great way to get large earnings for one time flips.
Oftentimes, House flippers will use hard money loans for their flips. Hard money loans make flipping a home easy as they allow you to buy properties, make repairs, and flip the homes for profit. Hard money lenders Arizona offer asset-based loans that are used for many types of real estate home rehab loans, and house flipper loans. These loans are based on the property after repair value, so they can be used to fund the purchase, and repair of a property.
Maximize Your Earnings With Commercial Real Estate Investments
Real estate investors can maximize their real estate earnings easily using commercial real estate! Commercial Investments offer many different styles, types, and endless possibilities for every investor. Similar to long term rentals, picking the right type of investment, and the right type of tenant is vital.
3 common types of commercial real estate investments are:
Apartment Buildings: Large Multi-family units with lease terms to one year or more. Lots of tenants, passive income opportunities, and maintenance! The highest cost for this investment would be managing the property.
Offices and Coworking spaces: Offices are a great investment for commercial real estate investors looking for steady passive income and easy tenant management. Payments are more reliable from companies, and leases run five-year to ten -year range. Depending on your local job market it may be easier to fill these spaces, but always make sure to offer the most for your tenants to hit zero vacancy.
Industrial and Warehouses: Industrial opportunities are great for those looking for low maintenance tenants, but can be costly to insure. From distribution centers, manufacturing, and even factories, a typical tenant lease might be 5-10 years. Make sure to do your research and state requirements for different types of industrial investments.
Commercial investments offer a more professional client, with more timely payments. These types of investments will be costly upfront depending on the state of the properties, but offer low maintenance tenants.
Summary
Building wealth with real estate is not only the dream of most investors but one of the top ways to become a billionaire. How you choose to build your passive and active earnings with real estate all depends on your market, portfolio, and investment strategies.
Here are the top 3 easy ways to maximize your earnings with real estate:
● Rentals: Whether you choose long-term or short-term rentals, these are great ways to start investing and see passive and steady incomes. Depending on your area you can even build income using vacation rentals during peak seasons.
● House Flipping: Buy, repair and profit, house flipping can really be that easy! House flipping is a great way for real estate investors to see large one time payouts for properties, perfect for investors looking to transform properties and profit!
● Commercial real estate investments: Office spaces, and warehouses can make for great passive and steady income for long-term leases. Picking the right properties will depend on the local job market, and great opportunities will vary from region to region.
What is your favorite type of investment?
About the Author: Catherine Way is a freelance writer and content marketer for business, mortgage, and real estate industries. She currently writes and reports for Prime Plus Mortgages- Hard Money Lenders Phoenix