5 Other Ways Of Generating Extra Income While Investing In Real Estate
Success in real estate, is not something that happens overnight. It takes time to learn the pitfalls, along with perseverance, when times become tough. To keep your business afloat you’ll need to keep funding it with new capital. More capital allows for more lead generation, advertising and marketing, which will bring in more prospects and greater returns. Finding the money for this capital can be daunting, especially when first starting out, but with the right mindset and planning it can be done. Until your business is up and running, you should look for other money making methods. Here are 5 ways you can generate additional income, while investing in real estate.
- Keep your day job. You might be tempted to quit your day job and pursue your real estate investments full-time, but until they’re bringing in a steady stream of income it might be best to keep your regular job. There’s no denying, it’s not easy juggling a full-time job and a real estate business at the same time but people do it and with modern technology, it’s a lot easier than it used to be. These days you can manage a lot, just off your mobile device and it’s easier than ever now to hire a virtual assistant. Having a regular job, not only gives you a steady income, it also provides healthcare and other benefits. That guaranteed check at the end of the month, can allow you to invest further in your real estate, without money grubbing fears of having to land another deal soon. Keep your regular job, until your confidence as a real estate investor has grown along with the income stream.
- Get your real estate license. As a real estate investor, you need to grow as many new income streams as you can. A way to open up more of these streams is by getting your real estate license. The great thing about real estate investing is that you can do everything on your own terms. You just need to find a broker that can approve your plan. You can then use your license on a regular basis to secure more deals. With your real estate license, you can close a limited number of small deals each year and keep a steady stream of extra income. The first place to start is with friends, family and co-workers. In any large group of people, there will always be someone who needs a real estate agent. Who better to trust than someone you know personally? Keep in mind though that a license is neither free nor easy to get. You’ll need to balance the initial time and money investment with what you think you can get out of it.
- Make a wholesale deal. Not every deal will come to fruition but you can still make some money from those deals you turn down. At times, you will encounter deals that won’t suit you, either for personal or professional reasons, however, that doesn’t have to mean money lost. This is where making a wholesale deal can be the best way forward. This is when you find a discounted deal and then connect the seller with the end investor. The end investor then pays you a flat fee for doing this. It won’t make you rich but it will make you some money off a deal that you would have otherwise gotten nothing out of. Once your flat rate is collected, you can dust your hands of everything and move on. No need to worry about closing procedures or what to do with the rehab.
- Start a real estate blog. A great way to make some extra money and learn more about real estate is by blogging. You can start your own blog or make pitches for guest posts on established websites. If you have a specialized area of expertise in real estate, finances or management you can definitely market that to bring in some extra income. Your knowledge of real estate investing will grow as a result and, what’s more, you’ll build up a network of useful contacts that could come in handy one day.
- The bird dogging process. Through your networking and conferencing, you might meet another investor that you strike up a friendship with. They might inform you that their trying to move into a specific market but are having trouble finding deals. You could offer to help by finding deals for them. Bird dogging is when you search a market for vacant or distressed looking properties. You then find the owner through the address and try to persuade them to sell. Any leads you do find, you can then pass onto the investor. In return, you’ll receive a percentage of each deal made or a set fee for your time.
Being a real estate investor is no easy task, but if you are committed and willing to make small sacrifices to start with, it can bring in huge rewards. These ways, will help you move things a little more quickly and smoothly.