6 Ways To Make Money In Real Estate

Real Estate

How do you make money in real estate? Well, there's a lot of different ways but if you don't have any money? Don't worry there are options for you, well, what if you have lots of money, still don't worry there are options for you too.

Real estate is a whole industry of its own so in this article, I want to go over 6 ways you can make money in real estate


1. Real Estate Brokerage

The first way you can make money in real estate is about being a real estate sale agent. You don't need a whole lot of money to become a real estate sales agent but most people do require you to take a class and pass an exam, you don't need a real estate license to buy real estate

The license is, you can help other people buy or sell their properties and make a commission on that, they usually paid a percentage of the sales price of the home, if a home sells for $1,000,000, you'll typically make between $20,00 - $60,000, 2- 6$, depending on how many agents are involved in where you're located.

But you're not just limited to home, once you get your real estate license you can be a broker for any kind of real estate, you can sell apartment complexes, office space, land, it's a good way to network and meet people that are involved in real estate

When you get your real estate salesperson license you have to join a brokerage who's supposed to guide you and help make money because the more money you make, the more money your brokerage makes

That also means that you'll probably have access to a lot of free sales classes and training because your brokerage want to see you become very successful because that's how they get paid
I do want you to keep in mind that the world is moving digital so the demand for traditional real estate agents isn't what it used to be so if this is something that you want to do remember that you have to be creative.

2. Real Estate Wholesaler

When you wholesale a product you buy it for cheap and then you sell it for a higher price and that difference is your profit. It's the same with real estate except for this time you don't have to put in any money to buy the property, you let somebody else do that

To give you a simple example,  you'll enter into an option contract to buy a home for $100,000, you're not going to put in any money yourself but you're going to go and find the buyer for the home and once you do that you're going to sell down the contract to buy the home for $110,000

That $10,000 difference is what you get to keep, and if you can't a buyer, you get to tear up the contract and you don't owe anybody anything

You're not improving the property or putting in any of your own money, you're connecting people who can't sell their home with people who wouldn't normally buy a home. In most places, you do not need a real estate license to do this because you're not actually selling real estate you're technically just selling a contract

But you should always speak to an attorney in your area so you understand your local laws

When you're wholesaling real estate, you can't cater to everybody, you have to find a special type of buyer and a special type of seller.


3. Investing in Real Estate

When you invest in real estate you buy real estate for the long term while letting somebody else use your property in exchange for rent payment every single month

One way to do this is by buying single-family homes, you buy a home and that way, every single day a tenant lives in your home you get paid, but you're not limited to single family homes either, you could invest in any kind of real estate, you combine office space and retail building or an apartment complex, you buy this property once and then you get paid forever because the tenant use it.

Plus if you know what you're doing and you buy in the right area your rent payments are going to go up every year and your property will become more valuable, so not only can you make more money every year, you can sell your property for more than what you bought it for.


4. Property management

When you're property manager you're hired by the real estate investor to manage their investment, so you'll be the one in communication with the tenant to make sure that they pay rent on time, you'll be the one making sure that the bills are paid and you'll be the one making sure that the tenant is taking care of the property

Property management is a good way to get experience with real estate investing without investing your own money because you'll be the one running and managing the real estate investment.


5. Flipping real estate

You've probably seen people flipping homes on TV, you find a home that needs work and then you buy it and then you renovate and remodel it hoping you can sell it for a higher price. 

I'm personally not a fan of flipping real estate because it's so speculative and if you buy a home to flip it at the wrong time, you're screwed, you don't know how much money you're going be able to sell the property for, and every day you own the property, you're losing money so you want to sell it as fast as possible

That's why I prefer real estate investing, every day you own the property you get paid and you don't really have to do any work. Now there are people that make good money flipping real estate.


6. Real estate development

Real estate development is when you build something from the ground up and then you sell it or lease it or a mixture of the two. When you develop real estate you have to be creative and think outside of the box, it's like just starting a business

You're creating something new that doesn't exist and your job is to attract the most customers as possible, the more demand you can create for your development the more customers you will have and the more money you'll make

Development is different than investing because when you invest in real estate you're buying something that already exists. Yeah, you might do some rehab or some renovation, but for the most part, you're just buying an income stream

There's a lot of skill required to develop real estate because there are so many moving parts, you got to deal with architects, city planners, and contractors who all have their own opinion, but you can also make the most money because you're creating something brand new

Real estate has opportunities for everyone, you just have to find what's right for you because there's really no limit to what you can do in real estate, and as they say, rich people keep their money in real estate 



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Author:

Hi, i am Micheal, the guy behind Roadtosuccesse. I share tips and tricks to help take a business to the next level, show which systems I personally endorse and use, share what I learn as a student of the game, and help people with personal development so that they can reach their full potential.

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