The real estate industry is a booming business, and there are many different aspects to it. For instance, you can work as a broker, an agent, a property manager, or even a developer. There are also many different properties that you can work with, such as commercial, residential, or industrial. So no matter your interests, there is sure to be a place for you in the real estate industry.
Homeowners also play a vital role in the real estate industry alongside people who don’t own any property. They are the ones who provide the housing stock that is necessary for the industry to function. Without homeowners, there would be no real estate industry.
Those who don’t have property are still potential investors. Essentially, anyone can have a stake in the real estate industry even if they don’t possess any assets. Here are some easy ways to make some money in the real estate industry without taking too much risk.
Invest in REITs
What are REITs, you might ask? They’re short for Real Estate Investment Trusts, and they trade like stocks on stock exchanges. They own or finance income-producing real estates, such as apartments, warehouses, office buildings, shopping centers, and hotels. When you invest in REITs, you get to enjoy owning real estate without actually having to go through the hassle of buying a property yourself.
There are many different types of REITs, but the two most common are equity REITs and mortgage REITs. Equity REITs own properties and use the rental income to pay dividends to their shareholders. Mortgage REITs lend money to property owners and investors using mortgages as collateral. These loans are then used to buy, build, or improve properties that generate rental income.
Why it’s Not Risky?
REITs are as risky as investing in stocks. However, at least you can dictate how much you put into your investment, unlike investing in properties, where you have to worry about maintenance and mortgage costs.
Getting involved in short-term rentals
Short-term rentals are becoming more and more popular as people are increasingly looking for alternatives to traditional hotels. And with the rise of platforms such as Airbnb, it’s now easier than ever to get started.
This strategy involves finding a property, usually through a rental platform, and renting it out for short periods (usually no more than 30 days). The key to making money with this method is to charge enough to cover your costs. And since you’re only renting out your property for short periods, you won’t have to worry about the hassles of being a landlord, such as finding tenants and dealing with repairs.
Why it’s Not Risky?
The most considerable risk when it comes to short-term rentals is that you might not be able to find a tenant when you need one. However, if you do your research and choose a popular tourist destination, you should be able to find a tenant with relative ease.
Flipping houses
Another way to make money in the real estate industry is to flip houses. This involves buying a property, usually at a below-market price, and then fixing it up and selling it for a profit. The key to making money with this method is to find properties that are in need of minor repairs. This way, you won’t have to spend too much money on renovations.
Why it’s Not Risky?
The biggest risk when flipping houses is that you might not be able to sell the property for a profit. This can happen if the repairs end up costing more than you expected or if the housing market crashes. However, with prices of brand new homes soaring higher than before, flipped homes are a great alternative for homebuyers who are on a budget.
Doing Inspections
If you’re not interested in any of the above methods, you can always become a home inspector. Home inspectors are hired by homebuyers to inspect properties before they purchase them. This is to make sure that the property is in good condition and free of any hidden problems.
As a home inspector, you’ll need to have a keen eye for detail and knowledge of building codes. But if you’re up for the challenge, it can be a great way to make money in the real estate industry. You can also do an aerial drone inspection service for extra money. Many commercial properties are required to do this, making it an essential service.
Why it’s Not Risky?
It’s not risky because you don’t own a property, and the only asset you own is the drones under your service. Aside from that, everything is yours, including the income you get from your work. The harder you work, the more income you can get.
Conclusion
Now that you know about some ways to make money in the real estate industry, it’s time to get started. If you’re looking for a low-risk way to get involved in real estate, consider becoming a home inspector. But if you’re willing to take on a little more risk, flipping houses or investing in short-term rentals can be a great way to make money. Whichever method you choose, make sure you do your research before getting started.
