Just when you thought earning money from real estate investments during tougher times is impossible, here come various investing methods that are taking the market by storm. Even in today’s market condition – the economy still recovering from the recession – these methods have been proven as effective sources of income. Here are some of them.
Rentals. You bought a second home before the market went into a slowdown and now you need money more than an extra property. However, you also don’t want to sell it because property prices are still on a low level. What to do? Open it for rentals. Many people are letting go of their homes for various reasons – paying mortgage is becoming a burden, needed repairs are too costly, urgent debts need to be settled first. Where will homeless people go? They will rent an apartment or a house for now.
Rentals are a good way to make money in real estate today if the property is in a good location. A good location is one that’s near business districts or college towns. Workers who cannot afford to buy a property or shoulder mortgage are likely to rent instead.
Students in college towns are also prospective tenants. Although rent will not give you the full capital you used for real estate investments, it will give you a steady stream of income. You get little money today and you get to keep the property until prices are up again.
Rehabbing. You have a property that’s been idle for years. And years of neglect apparently has taken its toll on the property, which now has broken windows and faded paint. The house is also probably just worth half its actual value when you bought it. It’s hard to sell it to end-buyers because they want homes that are ready for occupancy. You can’t sell it to wholesalers and rehabbers as well because they’ll purchase it for a bargain price. In this case, you can rehab the house yourself.
Instead of watching idle real estate investments be eaten by the earth, repair them and sell them instead. Rehabbing is a good way to make money in real estate, especially if you are a handyman. Handymen love doing home improvements. However, you will need financing for this investing option. You can go to private lenders and use the property as collateral. There are a lot of private individuals who are looking for opportunities to earn money with their extra cash today.