How to make money at home through real estate?

by Speedprop on July 31, 2018

Is it possible to make money at home through real estate? Yes. Possible. But, how? Rental properties. Become a landlord and earn a passive income every month. Bear in mind that becoming a landlord comes with great responsibilities. If you think you’re not feeling up to it, hire a property management professional to manage your rental properties. Property management eliminates the need to invest your time and effort dealing with your rental properties. This, of course, comes at a price. Be prepared to extract 10% of each month’s rent for property management fees.

Small apartment buildings

If you have such amount of money to invest in rental properties, aim for small apartment buildings. This is because apartment building has less competition. They were also considered too small for many experienced investors to compete, and too large for new investors to consider investing in. Thus it became a good option for you to invest if you have the cash. Once you have invested in the apartment unit, hire a property management to handle your rental property.

Investment groups

Yes, there’s such thing as investment groups. Investment groups work similarly like mutual funds but are limited obviously to rental properties. What’s interesting about investment groups is that it allows you to own invest in several rental properties. It also eliminates the need to manage the property on your own. An investment group invests or buys apartment buildings and lets other investors invest in the property through the group. The group will bear all the responsibilities to manage the property, from interviewing its tenants to advertising its units.

REIT

Another important consideration is the Malaysian real estate investment trusts (REIT). REIT allows investors to invest in the same manner investors invest in stock market. What’s more is REIT also allows partial ownership. REIT then uses investors’ money to purchase investment properties. Dividends obtained from such investments will then be equally divided among participated investors.

Turnkey

Turnkey is the right kind of strategy for real estate investors who are looking to make money easily without much effort. How does it work? You buy an investment property, a sort of property that doesn’t require make-overs and is ready to be rented out. You rent it out and start earning money.

Conclusion

Rental property investments are not the only way to earn passive income, there are other strategies out there that allow investors to enjoy the same perks the passive income has. Subscribe to SpeedProp to receive updates on our new blogs and features.