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. 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. 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. The following are methods of earning money in real estate without becoming an agent.
A real estate non-agent can make money through rentership. A lot of people are looking for rental units. In rentership, a property is bought or established and then rented out. Renting it out will help you to pay the mortgage without getting the money from your pocket. It is advisable to start by offering triplexes and duplexes. You can also invest in commercial property which has several units. To understand rentership better, please read this guide.
Another way to make money in real estate without being an agent is wholesaling. Wholesaling does not require you to purchase any property. By looking for a deal from a seller, writing the deal and selling it on a higher price, you will earn an income. If you have improved negotiation skills, wholesaling will be favorable for you.
Fixing and flipping is another way of making money in real estate. The 70% rule has made fixing and flipping a success. You only need to buy an old property. Then you should repair the property and sell it at a higher price. To become a successful flipper, you need to abide by the flipping rule.
Some real estate non-agents earn an income through hard money lending. A lot of people who want to buy homes dont qualify for loans. The many requirements needed in borrowing conventional loans have pushed some borrowers away. 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. The other name of note is a deed. Once a lender has issued a mortgage loan, he/she gets the deed. 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.
Finally, Property management will enable you to earn money in real estate. In property management, you will earn about 8% of the total payment made by tenants.