One of the greatest benefits of any investment is generating a passive income. Whether you’re investing in the real estate, stock, or any other market, the goal of any investment is to make money, preferably with a minimum amount of work. However, there are several ways to make money, so what sets investments apart?
It is the joy and advantage of being able to earn money without having to actually work for it. But not only that, it’s also the ability to make EXTRA money on top of your normal full-time job salary, which is NOT a bad thing. This blog aims to explore the available options in the real estate market for generating a passive income or with other words – how to earn money in real estate while also working in a full-time job.
How to earn money in real estate?
Let’s get to it.
How to Earn Money in Real Estate: Rental Properties
When asked “How to earn money in real estate?”, the first answer that comes up to most people’s minds is through rental properties. And since we’re talking about passive income, or real estate properties that can generate an income without having to commit a lot of time and effort into them, rental properties are among the best methods to earn money in real estate.
Although rental properties specialize in generating monthly income, there are certain aspects to keep in mind when considering a rental property as an investment without putting a lot of time and effort into it.
One of the most important aspects of a rental property is property management. In order for your rental property to succeed as an investment, it has to be well maintained and managed. This means investing time and effort, which is exactly what you’re trying to avoid if you have a full-time job.
This is where property management comes in handy; for an extra cost, which should always be taken into account when doing your investment calculations, professional property management can take care of all the daunting tasks that you do not have time to take care of, such as tending to tenants or repairing a broken sink, giving you the opportunity to enjoy your free time after your full-time job without having to worry much about your investment, while also enjoying the positive cash flow that it’s generating for you.
Thus, how to earn money in real estate? Purchasing a rental property might be the best answer for you.
How to Earn Money in Real Estate: REITs
REITs (Real Estate Investment Trusts) are amongst the best ways to earn money in real estate with the least amount of effort.
Related: What is a Real Estate Investment Trust (REIT)?
Investing in REITs is very similar to investing in bonds. You contribute with a certain amount of money, which goes to a pool of funds, which is then invested by the REIT in a real estate property, giving you some ownership over the property and a share of its profits.
Most REITs specialize in commercial property investments such as shopping malls, apartment complexes, hospitals, etc., while other REITs specialize in investing in mortgage loans, earning money primarily through net interest margin.
REITs are a great way to earn money in real estate due to the fact that they require no time or effort to be invested in them. The entire process of choosing properties, purchasing them, and generating money through them is carried out by the REIT, giving the investor the advantage of making money without having to work for it, in addition to giving the investor some ownership over commercial buildings.
How to Earn Money in Real Estate: Real Estate Partnerships
There are several ways of how to earn money in real estate. We are, however, looking for ways that require the least amount of time and effort. But this might leave us with fewer options and opportunities for higher returns. This is where partnership investing comes in.
Whatever kind of real estate investment you’re interested in can be achieved by finding the right real estate partner. Even if you do not have the time or the energy to invest in your own property, you can always find a partner who is fully aware of the situation and of your desires, and who is able to fill the other half of the cup on your behalf.
Meaning, if you have a full-time job and you are not able to find a good real estate investment opportunity without having to leave your job to tend to your investment, find a partner who perhaps does not have a full-time job, or who lives closer to the property than you do, or who is simply more willing to invest time and effort into the property than you can.
Related: Real Estate Partnerships Are Not All Roses: Beware of These 7 Potential Traps
When it comes to profits earned through real estate investment partnerships, you have to keep in mind that having a partner means having to split the rental income between the two of you, but it also means having to split the costs. This can be both a good thing and a bad thing, but in the end, it shouldn’t affect your cash on cash return on investment.
How to Earn Money in Real Estate: Virtual Real Estate
Virtual real estate refers to digital properties or properties that do not physically exist in the world. How to earn money in real estate that doesn’t even exist?
There are many ways. But among the most popular methods is investing in websites and domains. The best part about this type of investment is that it requires the least amount of time and effort, and in most cases it is less costly to get into. And although the returns from this type of investment aren’t as high as those from tangible real estate, in some cases the domain that you’re investing in can suddenly grow in value exponentially, earning you more money than you had planned or imagined possible.
How to Earn Money in Real Estate: Conclusion
The number of ways of how to earn money in real estate is numerous. The real estate market offers tons of types and methods of investment that can suit the needs and desires of any interested investor. Some people, however, simply do not have the time to invest in real estate due to having a full-time job, leading them to either quit their jobs in order to invest or quit their dreams of investing in order to focus on their job. But in the real estate market, there is always a way to make a passive income.
If you’re looking for your opportunity, but you can’t find the right property to invest in, give Mashvisor a try; it will help you find the best property to invest in whatever city or neighborhood you choose, in addition to providing you with a lot of data and real estate investing tools that can help you optimize your property investment and make the best investment decision.