How to make money from real estate in 2024

If you are someone seeking lucrative wealth creation for financial freedom then real estate can be a game changer for you. Out of all the financial sectors those have created wealth for individuals, real estate is the topnotch. In this post we will discuss 08 proven strategies to make money from real estate in 2024.

08 Proven strategies to make money from real estate in 2024

1. Rental Income
2. Fix and flip properties
3. Vacation rentals
4. Real estate investment trust
5. Real estate crowdfunding
6. Wholesaling/ real estate broker
7. Real estate development
8. Property appreciation

1. Rental income

This is considered to be the most consistent income method in real estate where the owner acquire residential / commercial properties and rent out them to tenants to earn regular rental income. Along with the rental income the appreciation of the property over the period of time gives an hefty returns to the investors. Rental income is the primary source of making money from real estate.

2. Fix and flip properties

Fix and flip properties is a great way to make money from real estate. In this method the investors search out for distressed properties, purchase them in a discounted price. Then renovate the property as per market standard and then sell them with a great profitable cost. In this method the investor can make more money however it requires a careful observation and search of the property. Good assessment and management need to make more profit in this business.

3. Vacation rentals

This is another lucrative investment option where you can make money from real estate, here you need to invest in properties located in popular tourist destinations. Further manage them to host tourist/ vacationers on short term basics to earn good income. Nowadays websites like Airbnb has made it easier for the market to increase occupancy and profit for the property owners.

4. Real Estate Investment Trusts (REITs)

It is the method of owning real estate with out physically holding the property. Here big companies own the property and give the opportunity to the Investors to own the REITs of some portions of it. The investors can earn good returns by investing in REITs for a period of time. Generally investors invest in REITs to diversify their portfolio. If you are someone who don’t have time to visit property, in this method you can make money from real estate with out actively indulging into real estate.

5. Real Estate Crowdfunding

Real Estate crowdfunding enables the investors to invest small amount of money in big real estate projects for big gains. The investors can avail various cloud founding platforms to raise money in order get good returns. In investors prospective it gives the opportunity to the investors to invest small amount of money in different real estate projects which gives diversification and better earning to the Investors. To be successful in real estate crowdfunding the investors needs to find out the right platform. Out of multiple options available online for real estate crowdfunding some of the best platforms are fund rise, origin Investments etc. This is another method of making money from real estate.

6. Wholesaling/ Real estate broker

The real estate broker act as a middle man between the seller and the buyer. It requires no investment but networking with high value individuals and negotiation skill is a must. The real estate broker earn the commission from the owner/ companies after locking the deal with the clients. The commission may raise between 6% to 20% depending upon the project. The broker look into the documentation and formalities during the process. To become a real estate broker one must need to be aware of the land law of the state as well as should have good communication skill and negotiation skill. Now a days various courses and certification programs are being conducted by various institutes. One must have obtain the necessary license from the appropriate authority. These days brokers are taking advantage of the social media to reach out the people.

Once you mastered the skill it’s easy to make money from real estate. It’s required patience and hard work to established as a real estate broker.

7. Real estate development

In this process you have to develop the raw land to real estate projects or redevelop an existing property to create value for you. This is required a huge investment and government approval. The profit is also significantly more.

8. Property appreciation

This is the the most common type of real estate investment to make money. In this process investors need to own a real estate and to hold that property till it gives substantial returns then it’s initial cost of investment. While investing in the property the investor must analyze future developmental aspects in the locality to get better returns on investment.

Conclusion

All the strategies mentioned in the article are proven method of making money from real estate but required ones careful observation, skillset, hard work and positive attitude to get success in real estate. Real estate is not a short term game it required investment and patience to make money in the market. For your reference you can see this you tube video on how to make money from real estate.

Also refer to this article for more details https://corporatefinanceinstitute.com/resources/commercial-real-estate/real-estate/