If you’re looking for an easy way to make money, there are certainly easier ways than becoming a digital nomad and traveling the world while digital influencers snap your photos and chime in about how amazing you look online. No, seriously, those are some of the easiest ways to make money online. But what if you want to stay in one place and be comfortable?
Well, you could always go back to school and get a formal education in a big city where the cost of living is astronomical. Or you could become a certified public accountant and start a firm in your city. Or you could become a lawyer and start a law firm. There are indeed easier ways to make money than sitting at a computer all day long, but you have to be willing to put in the work. In today’s world, however, hard work is often equated with money-making, and it’s not. It’s an uphill battle to be sure, but it’s one that rewards you greatly in the long run.
The Earned Income Approach
Let’s say you decide that you want to try your hand at being a real estate agent. You could start by taking on clients and negotiating favorable mortgage terms on their properties. You would then need to find customers and make sales. To do this, you would need to start an agency and begin to gain support from local banks and credit unions. You’re still in business for yourself, but you’ve opened a door to a new business opportunity. This is the epitome of the earning income approach. You’re starting from scratch, but you have a proven business model because you’re using a tangible product (a house) and you’re creating a service (real estate agency) that people can get value from. When you bring in revenue, you can feel confident that you’re on the right track. It’s a win-win situation.
The Least-Cost Ap.
The least-cost apartment strategy is very similar to the earned income approach. However, with this strategy, you’re not starting from scratch. You’re leveraging an existing asset (a house) that you can rent out. The only difference is that with this strategy, you’re looking for the cheapest apartments that you can find. The idea is to get ahead as soon as possible because you know how real estate speculators purchase properties in cheap neighborhoods and turn them into gold mines. By living in a more affordable place, you can feel secure in the fact that you won’t be out of pocket much money because you’re not paying for major appliances and amenities that you don’t need. In essence, you’re providing a product that people need and value, and in turn, you’re creating a revenue stream. Nowadays, this approach is often referred to as “location, location, location” because in the eyes of real estate investors, accessibility is more important than actual cost. If you can find a place that’s within your reach, it makes you more accessible to customers, and therefore, it makes you more likely to make a sale. Just make sure that the location is safe and has good schools or that you can get a good education there. Be realistic about your expectations as well because a lot can go wrong. In nearly all cases, you’re going to have to put in the legwork to prove to customers that you’re a stand-up person who can be trusted. It’s not like you’re flipping houses for profit, but there’s no denying that making money is easier than ever before thanks to the internet.
Three Types of Real Estate Investing
There are three distinct types of real estate investing that you need to consider (and eventually, you’ll want to specialize in one of them):
- Direct investment
- Indirect investment
- Pooled investment
Direct investment is when you purchase property (usually a house) and you’re responsible for repairs, renovations, and landscaping. This type of arrangement can work well if you’re a DIY (do-it-yourself) type of person who enjoys being involved in the contracting and building process. If you’re looking for a passive investment that you can use to fund renovations and repairs to increase the value of your house, consider doing it yourself. The advantage of this type of real estate investing is that you have complete control over what happens in your property. The disadvantage is that you have to be physically present to handle any repairs or renovations and you’re responsible for the whole process. If you choose this option, make sure that you’re familiar with home improvement and construction (in particular, plumbing, electrical, and carpentry).
Indirect investment is when you purchase property (usually a house) that you later rent out. This type of arrangement can work well if you’re looking for an easy way to make money from an existing resource (most likely, a house that you own). When you rent out a previously owned property, you’re offering customers a home that they can’t live in because either they don’t have enough credit or because they lost their job and couldn’t pay their rent. The advantage of this type of real estate investing is that you don’t have to be physically present to manage the property. The disadvantage is that you don’t know how the property is going to perform until you invest in it. If you choose this option, be sure to consult an expert real estate attorney who can advise you of the myriad of challenges that you will face. You will not be able to offer the customer the full benefits of owning a home unless they can afford it. In most cases, you will end up owning the property for longer than expected because the legal process associated with real estate investing can be extremely complicated.
Pooled investment is when you combine resources (usually, money) together in order to make bigger purchases or to take on more risk. This type of arrangement is common in commercial real estate because investors need to be able to trust one another in order to operate successfully. The advantage of this type of real estate investing is that you don’t need to be present to oversee the property. The disadvantage is that you’ll need to be ready to deal with disagreements and split the profits when everything is said and done. If you choose this option, be sure to consult an expert real estate attorney who can guide you through the legal and financial aspects of real estate investing. You should also look into structuring a property pool where you can split the profits with other investors. It’s a win-win for all involved because you’re using your combined resources to make an investment that will hopefully yield greater profit than you could have made individually. The more people who participate in the pool, the greater the potential for profit. Don’t forget, you’re in this for the long haul. Setting up a property pool is a lot of work, and you need to be ready to commit to the project for the long term. Real estate is a very complicated subject, and being able to work together to make money is usually the key to success.
Real Estate Agent Vs. Buyer’s Agent
As a real estate agent, you will be representing your clients (usually, buyers) in the purchase of real estate. A buyer’s agent, on the other hand, represents the interests of purchasers in the negotiation of real estate contracts. So, in essence, you are acting as an advocate for the buyer and working to negotiate the best possible outcome for your client. Your client will be better served by having a specialized agent who is familiar with the legalities and procedures pertaining to real estate transactions. It is not uncommon for real estate attorneys to also be buyers’ agents because they often end up handling many of the transactions for their clients. Make sure that you are familiar with the ins and outs of real estate law and know how to navigate the legal process successfully. Working with an experienced real estate attorney who can provide you with sound legal advice is invaluable. You will not be able to properly prepare your client for the complex process of buying real estate without their input and involvement. They will have to sign numerous papers, and you’ll have to make sure that they understand what they’re agreeing to. You may also need to help them navigate the process of buying real estate because they’re often not familiar with the workings of a real estate purchase. Be sure to take your time and do this in a manner that is comfortable for your client. Remember, you’re working for them and your goal is to make sure that they’re satisfied with the outcome. The key to a successful real estate transaction is full disclosure and open communication between all parties involved. You should be prepared to put in the work to ensure that your client realizes the benefits of owning real estate. It may require some research, and it is certainly not an easy task to negotiate a profitable real estate deal. However, with careful planning, research, and communication, it’s certainly possible. Real estate is a proven, viable, and profitable means of making money, and it’s easier than ever to get involved. Just make sure that you’re doing your homework and consulting with an experienced real estate attorney who can guide you through every step of the way. You’ll be glad that you did.