One of the most profitable ventures for anybody to invest in is real estate. Because real estate usually increases in value, with very few exceptions, investing in real estate ensures a return on your investment.
As an asset class, real estate investment frequently performs independently of the stock market, meaning that it may give diversity to most portfolios, and tends to generate above-average returns.
Regretfully, the substantial amount needed to engage in real estate is beyond the means of most investors. Thankfully, there are now many ways to invest in real estate without being a homeowner thanks to the Fintech industry.
In this article, I will outline 10 ways you can make money from real estate without buying property:
1. Invest in REIT
REIT stands for real estate investment trust. A REIT is a business that makes money by either owning or running real estate assets that provide income. These assets might be office buildings, residential complexes, warehouses, shopping centers, hospitals, infrastructure projects, etc. By investing in a REIT, investors may increase their real estate holdings without having to buy or maintain actual buildings. This spares investors the trouble of having to pay high maintenance costs and go through the capital-intensive process of purchasing real estate.
Investing in a REIT is equivalent to making an indirect investment in commercial real estate. Your shares’ worth will increase along with the properties’ value, and you could someday be able to sell them for more money. Additionally, you can get dividends from your REITs, which would provide you with a passive income stream. As a result, you may earn appreciation and a monthly cash flow without having to manage or own rental properties.
If you’re looking for a relatively passive, hands-off investing option, real estate investment trusts could be the way to go. A real estate investment trust is the perfect option if you’ve always wanted to own real estate but don’t have the money to start making your property investments.
2. Become a real estate broker or agent
A real estate broker and agent are not the same but they are often used interchangeably. A real estate agent receives a commission upon closing a transaction and is authorized to assist clients in purchasing and selling real estate.
Real estate brokers perform almost the same duties as real estate agents, but they are authorized to operate independently and have the ability to hire agents. In addition to receiving commission payments, brokers often get a portion of the commissions earned by the agents they employ.
Regardless of whether you are a broker or agent, you will receive a commission each time you sell or rent out a property.
3. Real estate photography and videography
Since first impressions are often formed online in today’s cutthroat real estate market, expert photography and videography have become crucial tools for property promotion. Excellent images have a big impact on how a prospective renter or buyer views a home. This determines whether a listing stays on the market or sells quickly.
This creates a demand for people who can take quality pictures and videos of real estate. You stand to make a lot of money if you can market yourself well in this sphere, and of course, have the skills to match.
4. Short-term rental management
People travel all the time, and they may need a place to stay for a few days or weeks. Hotels are typically very expensive, and it might not be feasible to renew a contract every day for weeks, so they often opt for short-term rental properties.
You don’t need to own properties to make money from this system, you can manage a short-term rental property and receive a salary or commission. Your job may involve receiving guests, overseeing staff, and managing bookings.
5. Real estate content creation
If you are someone interested and knowledgeable in real estate, you can create content like blogs, YouTube channels, and social media pages and educate people about real estate, best practices, and the latest trends.
There are several ways you can make money as a real estate content creator. You could monetize your content through affiliate marketing, sponsored posts, and ads. You can also reach out to reputable real estate companies and become an ambassador for them.
If you decide to become an agent, it makes it much easier for you to get customers since you are already well-known in the field.
To establish an online presence, reach more customers, and form lasting connections with customers, real estate companies are placing more significance in digital marketing. Many real estate companies need people who can advertise their products online and manage their social media accounts.
If you have skills in Facebook ads, Google ads, SEO, and social media management, you can provide your services to real estate companies and make money.
7. Property management
Real estate owners are sometimes too busy to oversee their own properties. In return for certain payments, they often employ property managers, whom they pay to oversee the properties on their behalf.
If you are able to find enough customers and manage many properties simultaneously, there is great potential to bring in a sizable income.
8. Property inspections and appraisal
People wanting to buy homes usually require the services of home inspectors to assist them study the house and determine if there are any red flags or reasons why they shouldn’t acquire the property. Home inspectors fetch premium prices particularly when there is a spike in the real estate market.
Real estate appraisers, on the other hand, assist in assessing a property’s financial worth.
9. Interior design services
After purchasing real estate, people often hire interior designers to help them decorate their homes. This is a very profitable field, especially in big cities where rich people reside and are willing to spend a fortune to make their living spaces look beautiful.
To start, you must first learn the skills required, and then market yourself to prospective customers. A portfolio showing your best work is extremely important in landing your first job.
10. Wholesaling
Investing in wholesaling houses is an option if you lack the funds to purchase real estate. The fundamental idea is that you search for properties that provide attractive prices, put them under contract, and then sell that contract to another investor for a fee.
If you decide to become a real estate wholesaler, you must be prepared to work hard. First, you need to locate property at a lower-than-average price to be able to sell it for a profit. Typically, these are from people who are struggling financially or in some other way and need cash quickly, or the home itself is in a really bad state. The next step is to find a buyer who will purchase the property within a short time and for a higher price than the owner is willing to sell.
Conclusion
There is a lot of money to be made in the real estate industry and the opportunity to do so is not limited to property owners. You can make money from real estate without owning property as long as you have skills that are marketable in the real estate industry.
