Ways of Earning Money in Real Estate Without Being an Agent
In real estate, a property is established, bought, sold, managed or rented. Examples of real estate properties are land, houses, and buildings. The increase in population and the appreciation feature of the real estate property has led to tremendous growth of this industry. The real estate industry could be different if there are no agents. An agent links real estate buyers to sellers. Some people would like to make money in real estate, but they dont want to become agents. 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. 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. You can also invest in commercial property which has several units. This guide has more on rentership.
Another way to make money in real estate without being an agent is wholesaling. You dont need personal investment to become a wholesaler in real estate. You only need to fetch for deals from sellers, publish the deal and sell the deal at a profit. If you have improved negotiation skills, wholesaling will be favorable for you.
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 need to buy property which needs repairs. By fixing the property and selling it later, you will make a profit. You cant succeed in fixing and flipping if you dont know the 70% rule.
You can make money in real estate without being an agent by lending hard money. If you dont qualify for a loan which is conventional, you can still own property. 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.
You need to buy notes and you will make money in real estate. Notes are also known as deeds. The mortgage lender holds on deeds after issuing a loan to a borrower. The note is issued back after the borrower has paid the mortgage. You only need to purchase some notes, and the monthly payments will be issued to you.
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.