Real estate investing reality shows can convince anyone to take a chance on the market. Finding properties at a low rate, making improvements, and selling them for thousands in profit seems like a dream come true. However, what isn’t always disclosed is the many risks an investor endures. It’s not uncommon for investors to purchase properties that need extensive (and costly) work. Some decide to make the necessary changes only to receive an offer that results in investors breaking even or going into debt.
Even some of the most successful investors have a few stories about the bum deals they’ve encountered. How do they manage to recover and succeed? Top investors develop multiple strategies to generate income that accommodates their lifestyle and provides capital to take advantage of other opportunities. Check out these money-making solutions listed below.
Wholesaling
You don’t have to buy real estate to make a lot of money. Wholesaling is a quick, low-risk way to generate sizable revenue. You don’t need much education, experience, or cash to start. You can sign up for an online course that teaches you how to wholesale real estate in Florida, and in a few weeks, be on your way to earning serious money.
As a wholesaler, you are the intermediary between property owners and buyers. You find people interested in selling their homes at a reasonable price within a short period and offer to take on the task for them. You negotiate a contract to find a buyer by the agreed-upon date and then advertise the property to buyers. Since you’re an investor, chances are you know a few people with steep pockets that would purchase the property.
Once you have someone, you assign the rights of the contract over to them and negotiate an assignment or finders fee. Is wholesaling real estate in Florida legal? Although this revenue strategy seems too good to be true, the answer is yes. Many people have made sizable profits on their first sale without the hassle or risks of investing.
Do It Yourself
If you consider yourself a handyperson, why pay someone else to do the job for you? When you hire contractors, it eats your profit. Therefore, consider working on investment properties yourself. Mass cleanings, demolition, painting, installing flooring, and lawn care are all relatively easy to complete without assistance. Then, you can hire the pros for more extensive work like electrical, roofing, plumbing, or HVAC.
As noted by the folks from The Roof Doctor, even if you have some experience, leaving the roofing work to professionals is crucial to ensure quality work and avoid potential safety hazards. The same goes for other highly technical and risky tasks.
Repairs and maintenance aren’t the only things investors can do themselves. You can also complete the role of a real estate agent. If you’re familiar with the market, you can advertise your listing, stage the property, host an open house, and ultimately find a buyer.
Referral Programs
While most investors have strategies to find vacant properties for sale, it can hurt to consider other avenues. Create a referral program and gain access to more earning opportunities. For instance, ask property owners and buyers if they know people interested in purchasing or selling a home. If they give you a referral that turns into new business, you can provide them with a fee.
Since the referral came from someone they know, your chances of converting them to sales and generating revenue increase. Ultimately, if you find a new property or get a buyer with a sizeable offer, it’s worth the few hundred bucks you paid for the referral. Not to mention, as people get paid for their referrals, they’re likely to recommend the program to others, which expands your investment venture exponentially.
There’s no denying that you can make a lot of money as a real estate investor. However, there’s no guarantee that you’ll continue to rake in thousands of dollars every time. That’s why it’s essential never to put all your eggs in one basket. While taking risks is part of the job, having other ways to generate revenue is ideal. Considering the above concepts enable you to earn more money to help sustain your business and lifestyle.
