Ways of Earning Money in Real Estate Without Being an Agent
The building, buying, selling, renting and managing valuable and immovable property is known as real estate. Examples of real estate properties are land, houses, and buildings. A lot of people have discovered that real estate property is always appreciating and this has led to high demand for the real estate property. One of the major players in real estate is an agent. The work of the real estate agent is to connect real estate buyers and sellers. Many people believe that they must become agents to make money in real estate. The following tips will make you discover new ways of earning an income from real estate if you dont want to be an agent.
Venturing in rentership is a good way of making money in real estate if you dont want to become an agent. A lot of people are looking for rental units. You only need to buy a property and rent it 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. Duplexes and triplexes and other multi-family dwelling are the best properties beginners should purchase. You can also invest in commercial property which has several units. To understand rentership better, please read this guide.
Wholesaling is another way of making money in real estate if you dont want to be an agent. Wholesaling does not require you to purchase any property. Real estate wholesaling involves offering deals to buyers at prices which are relatively higher. 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 in house flipping has made this method a success. You only need to buy an old property. By fixing the property and selling it later, you will make a profit. To become a successful flipper, you need to abide by the flipping rule.
You can make money in real estate without being an agent by lending hard money. Some people who cant be issued with conventional loans want to own property. Many people who want to own property dont like borrowing from conventional owners because of the many requirements. Hard money lending attracts an interest which is higher.
The real estate non-agents also make money by purchasing deeds. Deeds are also known as notes. After borrowing a loan, you will issue the deed to the mortgage lender. The borrower is supposed to repay the mortgage loan to get the deed. If you buy the notes, you will be receiving 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.