In the wake of a pandemic that has had serious impacts on household incomes, many people are looking for creative ways to make extra money. One such way is through real estate investing. If you’ve been thinking about getting into this industry, now may be an ideal time because it just so happens that there's never been more interest from potential investors than right now!
Some popular side hustles include buying homes at foreclosure auctions or renting out rooms in your own house when you don't use them, but there are other opportunities for making money through real estate that you may not have considered. For example, you could become a real estate agent or property manager and get paid to help people buy or sell homes. You could also invest in fixer-uppers and then either sell them for a profit or rent them out to tenants.
There are a few things to keep in mind if you're considering investing in real estate. First, it's important to do your research and understand the market before making any decisions. You don't want to buy a property you can't sell or rent because the area is in decline. Second, be prepared for some work! Real estate investing is not a get-rich-quick scheme - it takes time and effort to see results. Finally, don't forget to consult with a professional if you're not sure where to start.
Real Estate Side Hustles
REIT investing: Investing in a real estate investment trust, or REIT, can be an excellent way to diversify your real estate portfolio by investing across different asset classes. The returns are generally higher than with stocks or bonds, and there is no need for you personally manage any aspect of these investments since they're professionally managed on behalf of shareholders. There's also the potential for attractive recurring dividends if high-yield trusts pay out 7%+.
Fix and flips: This is when you purchase a property, make renovations, and then sell it for a profit. It can be a great way to earn some quick cash, but it's important to have a realistic idea of the costs of repairs as well as the market value of the property afterwards so that you don't end up losing money.
Rental properties: This is a more passive form of real estate investing where you purchase a property and then rent it out to tenants. The income from rental properties can be significant, but it's important to factor in the costs of maintenance, repairs, and vacancy when you're calculating your expected return on investment.
Property management: If you don't want to be a landlord yourself, you could become a property manager and get paid to manage other people's rental properties. This can be a great way to earn some extra income without having to deal with the hassles of being a landlord, but it's important to make sure you're aware of the responsibilities involved before taking on this side hustle.
Vacation rental: If you want to make extra money and enjoy the local culture, then a vacation rental might be right up your alley. When people from out of town want an affordable option for their stay in a certain area, it can generate serious cash flow because they often prefer this over expensive hotels that offer little service or amenities outside room rates alone.
Wholesaling: The wholesale market in real estate is a little more complicated than just flipping houses. In wholesaling, a wholesaler enters into a contract to sell a property on behalf of the owner. The property is usually a distressed and/or off-market property that the owner wants to sell, but doesn't want to undertake the preparations necessary for a traditional sale. The wholesaler takes over the search for a buyer and typically handles all necessary repairs, showings, and tax implications. Wholesalers agree contractually to sell the property for some minimum amount in a delineated time frame - if the property is sold for more than the minimum amount, the wholesaler pockets the profit.
Wholesaling can be a lucrative endeavor that doesn't require too much investment up front, especially when compared to other real estate investment options; however, there are other considerations to keep in mind. Because your income is tied to whether or not you can sell the property at a higher amount than what's in the contract, your profits can be unpredictable. Additionally, if you're doing this professionally rather than solely as somebody's investor/partner, you'll need to find your own properties to wholesale too, not just rely on one person's sale.
Bookkeeping: Bookkeeping is the bane of most small business owners' existence. But if you're looking to make some extra money on your real estate investments, bookkeeping might be just what's needed! With successful investors knowing how important numbers are when buying or selling property, they generally outsource this task so that their focus doesn't get distracted by the accounting work at hand. Free rental property financial software like Stessa automates income and expense tracking, which makes running reports easy as pie.
Photographer: If you’re already a great photographer, taking pictures and videos of property just might be an ideal real estate side hustle. One thing that makes this particular type unique is the fact that it doesn't require much effort on your end other than being available to work whenever needed. Managing all those pesky little details like lighting setup can take some time, but once you have them down pat you can take beautiful photographs for real estate professionals that are ready for display online as well as off.
Social Media: Imagine a world where you could generate repeating income from social media without the time commitment. Social Media Consultants can provide this service for real estate professionals by creating engaging and informative content on their behalf, which can then be shared across various platforms including Facebook, Instagram, YouTube, and/or LinkedIn. With these methods in place, it becomes easier than ever before not only to market yourself as an agent but also to establish thoughtful relationships with clients who may need help searching for or buying property.
Notary: Notaries are an important part of the real estate process. They provide services like witnessing document signings, certifying copies and administering oaths - all things that help make your work easier! Not only do notaries have to meet certain qualifications to become one, but there are also different rules depending on where they'll serve (for example, some states allow anyone while others require residents).
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