How to Make Money in Real Estate Without the Need of Becoming an Agent
The business of managing, renting, establishing, selling and buying property is known as real estate. Since land, building and houses have a high value, yet they are immovable, they are part of the real estate property. The increase in population and the appreciation feature of the real estate property has led to tremendous growth of this industry. One of the major players in real estate is an agent. The work of the real estate agent is to connect real estate buyers and sellers. Many people believe that they must become agents to make money in real estate. The following are methods of earning money in real estate without becoming an agent.
A real estate non-agent can make money through rentership. The demand for rental units has increased. In rentership, a property is bought or established and then rented out. Renting out property will enable you to service your mortgage loan and earn an income. Duplexes and triplexes and other multi-family dwelling are the best properties beginners should purchase. By renting out commercial property which has several units, you will make more money. To understand rentership better, please read this guide.
Real estate non-agents earn income by wholesaling. Wholesaling does not require you to purchase any property. Real estate wholesaling involves offering deals to buyers at prices which are relatively higher. If you have improved negotiation skills, wholesaling will be favorable for you.
The real estate non-agents also make a profit by fixing and flipping. The 70% rule has made fixing and flipping a success. In fixing and flipping, a poorly maintained property is bought. By fixing the property and selling it later, you will make a profit. To become a successful flipper, you need to abide by the flipping rule.
Hard money lending will enable you to earn money in real estate. If you dont qualify for a loan which is conventional, you can still own property. The many requirements needed in borrowing conventional loans have pushed some borrowers away. Hard money lending will enable you to make more money since the hard money attracts a higher interest.
You need to buy notes and you will make money in real estate. Notes are also known as deeds. Once a lender has issued a mortgage loan, he/she gets the deed. Mortgage lenders issue the deeds back after receiving the total mortgage back. If you buy the notes, you will be receiving the monthly payments made by the borrowers.
Finally, Property management will enable you to earn money in real estate. By collecting rent, dealing with evictions, managing tenants and many more, you will earn 5% to 12% of the amount paid monthly by the tenants.