Investing in real estate is a fantastic way to generate income and build long-term wealth. Many consider real estate a pathway to financial freedom thanks to its potential for appreciation, cash flow, and tax benefits. This blog will delve into how to make money in real estate with little to no money.
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What are The Best Ways To Make Money In REal Estate With Little To No Money
Here are my top picks for the best ways to get into real estate when you don’t have a lot of money:
- Become a Real Estate Agent
- Become a Real Estate Transaction Coordinator
- Real Estate Wholesaling
- Invest in Tax Liens or Tax Deeds
- House Sitting
- House Hacking
- Staging Homes
- Real Estate Photography and Videography
- Notary Signing Agent
- Property Preservation
- Real Estate Crowdfunding
- Invest In Real Estate with REITs
- Real Estate Mutual Funds
- Real Estate Notes
- Short Term Rentals
1. become a Real Estate Agent
There’s no better way to learn about the real estate market than having your real estate license.
Real estate agents help guide buyers and sellers through the home-buying process.
As a real estate agent, you can earn a commission on each sale or rental you complete.
Another terrific way to make money as a real estate agent is through referrals.
Referrals are when you refer a potential client to an agent or brokerage for a fee.
2. Become a Real Estate Transaction Coordinator
If you’re organized and detail-oriented, start a side hustle as a real estate transaction coordinator.
Real estate agents are often managing many clients, which means various deadlines. You can help make their lives easier by helping them with their transactions.
You’ll manage all the paperwork and communication between buyers, sellers, and agents.
3. Real Estate Wholesaling
For many money-strapped investors, wholesaling is an excellent way to get started in real estate investing.
In this business model, you get distressed properties under contract and then assign that contract to a buyer (investor) for a fee.
4. Invest In Tax Liens or Tax Deeds
Tax liens and tax deeds are legal processes that allow investors or buyers to buy properties at steep discounts.
A tax lien is a claim placed on a property by the local government to secure payment of unpaid taxes. Tax liens are purchased by investors or buyers willing to pay delinquent taxes in exchange for a lien on the property.
Tax deeds are like tax liens, except they transfer property ownership from the current owner to the investor or buyer who pays off their taxes. Tax deed sales happen when a homeowner fails to pay their taxes and/or does not respond to notices from the local government.
The states that conduct tax lien sales include:
- Alabama
- Arizona
- Colorado
- Florida
- Illinois
- Indiana
- Iowa
- Kentucky
- Maryland
- Mississippi
- Missouri
- Montana
- Nebraska
- New Jersey
- North Dakota
- Ohio
- Oklahoma
- South Carolina
- South Dakota
- Vermont
- West Virginia
- Wyoming
The states that conduct tax deed sales include:
- Alaska
- Arkansas
- California
- Georgia
- Hawaii
- Louisiana
- Maine
- Massachusetts
- Michigan
- Minnesota
- Nevada
- New Hampshire
- New Mexico
- New York
- North Carolina
- Oregon
- Pennsylvania
- Rhode Island
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- Wisconsin
Rules and regulations surrounding tax sales vary by state and county; consult a professional before investing in tax liens or deeds.
5. House Sitting
House sitting is when someone pays another person to stay in their home while they’re away.
You’ll be responsible for looking after the house and ensuring everything is in order. House sitting can be an excellent job for someone who wants to explore different cities or towns.
7. House Hacking
House hacking is a real estate investment strategy that involves buying a property with multiple units, living in one unit, and renting out the other units to generate income.
The rent collected from tenants may cover your mortgage payment – allowing you to live for free.
The best part of house hacking is using a traditional mortgage loan to buy your property. Rental income is generally factored into how much you can borrow, meaning you can afford a bigger house.
7. Staging Homes
Home staging is for you if you’re looking for a more creative outlet and love interior design.
As a home stager, you will ensure that homes look their best before they go on the market. According to the National Association of Realtors, home staging can increase the sale price of a home by up to five or ten percent.
8. Real Estate Photography and Videography
Another creative way to make money in real estate with little to no money is by starting your own real estate photography or videography business.
As a real estate photographer, you can take pictures of properties or offer to take pictures of the real estate agents for their marketing materials.
If you have more of a knack for making videos, consider offering video marketing services too. With over 91% of businesses using video as a marketing tool, video will be crucial for real estate agents.
You’ll need a good camera, lighting equipment, and some photo editing software knowledge.
9. Notary Signing Agent
In some states, real estate transactions require the presence of a notary to make sure that documents are correctly signed and witnessed.
As a Notary Signing Agent, you will be responsible for witnessing the signing of important documents in real estate transactions.
You can find jobs through local title companies or online services like Notarize.
#10 Property Preservation
Property preservation is often an overlooked way to make money in Real Estate.
Property preservation is not like regular house cleaning as it involves many tasks beyond the scope of housekeeping.
You’ll be responsible for repairing and maintaining foreclosed or abandoned properties. Tasks include, but are not limited to:
- mowing lawns
- removing debris
- turning on utilities
- changing locks
- painting walls, and more.
These tasks help properties to look their best before they go on the market.
11. Real Estate Crowdfunding
Want to get started in commercial real estate investing but don’t have $6 million lying around? I’m right there with you!
Real estate crowdfunding is an affordable way to invest in large-scale real estate projects.
In this investment strategy, a sponsor pools money together from investors to invest in commercial real estate projects.
If you want to get started in real estate crowdfunding, there are plenty of online platforms like RealCrowd, Crowdstreet, and RealtyMogul.
12. Invest In Real Estate with REITs
In Real Estate Investment Trusts (REITs), you buy shares in a corporation that owns a portfolio of properties.
While you don’t have direct ownership of the properties you invest in, you reap the rewards through the profits generated by these investments.
REITs are traded on public stock exchanges and must return at least 90 percent of their taxable income to shareholders as dividends.
REITs allow you to invest in various real estate projects for a fraction of the cost. They are also a great way to diversify your investments while reducing risk at the same time.
Many REIT types are available, so it is vital to research before investing.
13. Real Estate Mutual Funds
Real Estate Mutual Funds provide investors access to a portfolio of stocks and bonds, which a professional manages.
Investing in real estate mutual funds is less expensive than physical real estate investment and more liquid, allowing investors to sell their shares and access their capital quickly.
14. Real Estate Notes
Real estate notes are short-term debt securities that are secured by real estate. Since they are debt securities, investors can purchase them at a discounted price and then collect their interest payments over time.
15. Short-Term Rentals
If you have an extra bedroom or second home, consider renting them out to make some extra money as a short-term rental (STR).
STR is different from house hacking in that house hacking is more from long-term rentals (rental contracts of a year or more).
Short-term rental platforms like Airbnb and Vrbo make it easy to start earning income from your space.
Conclusion
Making money in real estate with little to no upfront cash is possible, but it requires a bit of creative thinking. Researching and consulting with professionals before attempting these methods is a good idea.
FAQs
Is Real Estate Get Rich Quick?
No, real estate is not a get-rich-quick scheme. It requires patience, hard work, and dedication to make money in the long run.
What’s the Best Way to Make Money with Real Estate?
The best way to make money in real estate varies depending on your goals and risk tolerance.
Do You Have To Have A Real Estate License To Make Money In Real Estate?
No, you don’t need a real estate license to make money in real estate.
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