19 Guaranteed Ways to Make Money with Real Estate
There are countless ways to invest and make money with real estate. In this post, we’ll be covering 19 different property types and investments so you can broaden your knowledge about the opportunities in the industry. Now, let’s jump right in!
Fix and Flip Properties
A.k.a “house flipping”
The most basic form of real estate. You own and live in your home and expect it to appreciate in value.
A multi-unit home, town homes, or small apartment buildings.
Long Term Rentals
Own your own property (or an entire row of them) and have tenants cover the mortgage and then some each month.
Short Term Rentals
Rent out a room or home with platforms like AirBnB and HomeAway. Learn how to get your first booking on AirBnb here. Sign up as an AirBnB host here.
“Extra Space” rentals
Renting out unused space in your home to tenants. Usually the basement.
Two Year Flip Strategy
Buy a primary residence and sell it within 24 months. You gain profits from your home appreciating in value tax free.
Real Estate Investment Trusts
REITs are corporations that have a large portfolio of real estate properties. Usually they are on major exchanges and they allow anyone to buy shares in it if it’s publicly traded. This provides investors to have a liquid stake in the real estate market.
Real Estate Mutual Funds
A diversified investment that will be professionally managed by someone for a fee.
Real Estate ETFs
A real estate exchange-traded fund is like owning a basket of REITs. It works like an index.
In addition to the land, you can make income from what the farm produces. Either by splitting profits and collecting rent from someone or operating it yourself.
Purchasing raw land can be subdivided and resold, built upon, or both.
Commercial Real Estate
You can find buildings to rent out to a business, a row of shops, or offices which can be multiple tenants at once.
Real Estate Notes
When borrowers have stopped paying for their mortgage the bank will sometimes sell these mortgages at significant discounts to investors. The investor then collects payments for the mortgage plus interest.
Crowdfunding Real Estate
Developers raise money from multiple individuals and organizations. In return, the investors get a potential profit.
Mobile Home Parks
Purchase the land for a park and lease out slots to residents who own their own mobile homes or rent them from you as well.
The same as above but without owning the land/park.
Sandwich Lease Options
An investor rents property from the property owner and then leases the property to another tenant for a higher price usually. The primary investor both collects rent and pays rent in this situation.
Tax Lien Certificates
A tax lien certificate is when homeowners refuse to pay their taxes so the government forecloses the home and resells the property. Generally sold to investors through an auction.