Ways of Earning Money in Real Estate Without Being an Agent
The business of managing, renting, establishing, selling and buying property is known as real estate. Land and houses are good examples of real estate property. The increase in population and the appreciation feature of the real estate property has led to tremendous growth of this industry. A real estate agent is a great player in real estate. The work of the real estate agent is to connect real estate buyers and sellers. You dont need to be an agent to earn money in the real estate industry. Below are ways you can make money in real estate without being an agent.
Venturing in rentership is a good way of making money in real estate if you dont want to become an agent. The demand for rental units has increased. In rentership, a property is bought or established and then rented out. If you bought the property by using a loan, renting it out will assist you in repaying the loan and still earn some money. If you are a beginner, you need to start investing in multiple family dwellings such as duplexes. Commercial property with more than 4 units is also recommendable. This guide has more on rentership.
Wholesaling is another way of making money in real estate if you dont want to be an agent. You dont need personal investment to become a wholesaler in real estate. By looking for a deal from a seller, writing the deal and selling it on a higher price, you will earn an income. In wholesaling, you need to have improved negotiation skills and the ability to look for deals.
The real estate non-agents also make a profit by fixing and flipping. The 70% rule has made fixing and flipping a success. You need to buy property which needs repairs. By fixing the property and selling it later, you will make a profit. The successful people in fixing and flipping abide by the 70% rule.
You can make money in real estate without being an agent by lending hard money. A lot of people who want to buy homes dont qualify for loans. Some people do not want to borrow conventional loans because of the numerous requirements. You can lend hard money which has short repayment periods and higher interest rates.
The real estate non-agents also make money by purchasing deeds. The other name of note is a deed. After borrowing a loan, you will issue the deed to the mortgage lender. The note is issued back after the borrower has paid the mortgage. You are supposed to buy the deeds, and you will collect the monthly payments made by the borrowers.
If you would like to get a share of the income made in real estate, but you dont want to become an agent, you should start managing property. 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.