Real estate is considered to be a stable investment for many investors. However, not many people know where to start. This article will cover various ways you can make money in the real estate industry, with some requiring very little cost to start.
How is the Real Estate Industry During the Pandemic?
This might be the very first question that popped into your head. The reality is that every industry in the US is hit by the pandemic, with some being hit harder than most. Thankfully, the real estate industry didn’t take that much damage from the pandemic.
The residential property industry had a few buyers during the onset of the pandemic but this changed as the months passed by. More buyers have entered the market once quarantine restrictions were lifted this year. However, prices for homes continued to soar high, increasing the competition in the market for buyers, but not for sellers.
When it comes to the commercial industry, many office spaces have been abandoned, leading to lower revenues for this subsector. However, experts believe that this will not last for long as more business owners will look for offices when the pandemic subsides. Additionally, malls and other recreational spaces will once again function later on this year, leading to a perceived increase in demand.
So how do you get started in the real estate industry? There are many options, but we will talk about the most practical ones.
The most practical choice for you is to become a real estate agent or sell your properties. Arguably this is the best way to earn money in the industry, but it does require a lot of effort from your side.
Becoming a Real Estate Agent
Becoming a real estate agent takes a lot of time and effort, but it is one of the most rewarding careers in the industry. The requirement may differ from each state but the fundamentals stay the same: take a prelicensing course, participate in a licensure exam, and then activate your license. After this, you can work your way up to a realtor and start appraising properties yourself.
This can easily take many years off your life, but if you want a stable career choice in the industry then this is for you. At some point, you can build your real estate company and become your own boss.
Sell Your Properties
Another way you can earn money in real estate is to sell the properties you own. May it is from your hard work or inheritance, properties are the best way to earn money in this field.
The first step of selling your properties is to find yourself a real estate agent. If you are a real estate agent yourself then you don’t have to worry about a cut. But if you’re not then you’re better off finding a real estate agent to sell your properties. Yes, they will get a cut from the purchase but it’s better than doing the selling yourself.
This can easily be the most lucrative option among the others on this list, especially if you have residential properties to sell. As stated earlier residential properties are on an all-time high this year, making it more worthwhile to sell any properties you might have.
The next one on this list is to make direct and indirect investments into the real estate market. It’s like stocks, and much like stocks your earnings can fluctuate and increase depending on the state of the market.
Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) are known to be the stock market of the real estate industry. If you invest in a REIT, you are essentially giving your money to a property management franchise. They will then use that money to manage the properties they have in their possession and give you a percentage of the revenues by the end of the quarter. The higher you invest the more revenue you can get out of this option.
Lastly, you can choose to be a landlord. There isn’t a real qualification to become a landlord, as long as you have a property and you can lease it, you can start a business out of it. It’s much easier than becoming a real estate agent, but your earnings rely on whether if you someone renting your property.
Ideally, it’s good to invest in the property first than purchasing it outright. Many real estate companies offer this choice for landlords who want to work for them. Eventually, you can pay that particular property through dividends, and make it your own.
Here are the best options you have if you want to make money in the real estate industry. These options are ideal and practical. They will also give you a career that you can have for the rest of your life. The best time to start is now when people are still looking for properties during this competitive time.