All of us want to know how to make more money. Here’s a thought: invest in real estate.
Investing in real estate is one of the best ways to make money. The benefits, both short-term and long-term, are plentiful, the time is ripe, and the process is easier than ever before. If you really want to know how to make more money, we can’t recommend investing in real estate enough.
Why You Should Invest in Real Estate
Variety of Benefits
1.) Ka-Ching, Ka-Ching!
This is such an obvious reason. Real estate investments are a great way to make some cash. With rental income as your bread and butter, and positive cash flow as your goal, making a lot of money in real estate is very possible.
2.) Appreciation
Real estate does not equal income properties or rentals. You can invest in real estate by simply buying investment properties. Then, once a real estate property increases in market value, or appreciates, you can sell the property and make a lot of money. Appreciation isn’t always the first answer when asking ‘how to make more money’, but it’s a surefire way to do so.
3.) Tax Benefits
Nobody smiles when filling out their 1040s… except real estate investors. That’s because they can claim expenses used for their rental properties. Expenses used to maintain a rental property and mortgage loans are just a couple of examples of the expenses claimed in tax forms.
The Time Is Now
1.) Low Interest Rates
Interest from many loans is easy to rack up but not as easy to pay off. Interest on real estate mortgages, on the other hand, can be easily paid off if the rental income is more than the required payment. This is often the case, especially with great investment properties. On top of that, interest rates have been at historic lows. An uptick has occurred in recent years, but not to concerning rates.
Related: All You Need to Know About a Mortgage for Rental Property
2.) Prices are Pretty Good
Property prices have begun increasing, but they are not unaffordable at all. Real estate property prices are still reasonable, plus qualifying for a mortgage has become easier. Also, if you can get a good or even great deal, you’re in for some good cash. You can also opt to purchase foreclosures.
3.) Great Retirement Plan
To avoid hearing your future-self trying to answer ‘how to make more money’, invest in real estate while you’re young! It’s a great retirement plan. You can even use real estate investments to pay off current debt you own, like student loans, and still can retire with your pockets full. When done correctly and successfully, real estate investing could possibly help you hit financial independence sooner than you think!
How to Make Money in Real Estate
There are many, many ways to invest in real estate. Here are just some of them:
Related: How to Make Money in Real Estate: 7 Different Ways
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Long-Term Investments
If you want to know how to make more money in real estate, long-term investments are a great place to start. The main benefits of long-term real estate investments are obvious and desirable: positive cash flow and real estate appreciation. There are a variety of properties that are suitable for long-term investments. Perhaps the most notable are single-family homes. These are popular rentals for tenants and even buyers. Also reliable are multi-family homes. Residential real estate isn’t your only option with long-term investments. You can also check out commercial real estate and even house wholesaling. Long-term real estate is a great answer to the infamous ‘how to make more money’ question.
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Airbnb
Not interested in traditional real estate? If so, consider renting through Airbnb. This short-term rental platform has been trending for years now, and for a good reason. Real estate investors tend to make more through Airbnb than with traditional investment properties. Also, tenants tend to be in better moods when moving into Airbnb rentals, so less headaches for you! The only issue with Airbnb is that some cities have legal issues with the platform. Some cities have specific taxes and zoning rules for Airbnb properties. In others, though few, the platform is outright banned. Before considering to join in on Airbnb, know your city’s legal status with the platform.
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Passive Investments
Ever wondered how to make more money, but passively? Real estate still has the answer. There are many options for passive real estate investments. You can decide to go nice and simple by renting out a part of your house. This is a great way for how to make more money, but there’s a catch. Some cities may outlaw this activity, while others may have some limits and regulations.
Related: How to Make Money in Real Estate Passively
What if you’re interested in investing in skyscrapers, malls, and other commercial buildings? You can do so, passively also, through REITs. Real Estate Investment Trusts are companies that invest in large real estate projects. Returns through REITs are high, and tax rules are simple. But still, these same taxes can be a burden to a real estate investor.
Here’s another passive investment idea: real estate crowdfunding. It may be called passive, but it’s more of a middle ground between active and passive investments. It’s active in the sense that a group of investors decide on a certain property. It becomes passive in the amounts put into it. You could invest as little as a few thousand bucks and get some great returns. Your returns depend on the market, so if it isn’t doing well neither will your returns.
Knowing how to make more money is something we all wish we knew the answer to. If you asked us, or any real estate investor, the answer will be to invest in real estate. The benefits are many, the process is not difficult, and the experience is superb. You could choose real estate investing as a full-time or a part-time job and still reap great returns. Consider becoming an investor today!
Wanting to know how to make more money is one thing, taking the steps towards doing so is another. Take that first step by searching for an investment property with Mashvisor!