Real estate investing/residual income/flipping house
Over the years, real estate investment has turn out to be one of the most successful means of creating more wealth. Only few other investments generate as much wealth as investing in land and property. In the history of investing, real estate investment seems to be most reliable and consistent means of wealth building.
Some of the world’s richest people build their wealth by investing heavily in real estate. They invest in real estate to create a residual income earning opportunity. And residual or passive income through real estate can develop into a massive wealth.
Talking about residual or passive income, it is technically the type of income that you continue to receive long after an initial effort has been put in place. One continues to generate residual income on a regular basis (monthly, quarterly or yearly) with little effort in the management of the investment.FLIPPING HOUSES CLICK NOW
Residual income is something many people work hard to build for themselves and their loved ones. There’s hardly anything more satisfying than one to continue earning from their hard work or investment.
There are different ways of generating residual income through real estate investment. These are:
• Rental properties
• Flipping houses, and
• Crowdfunded Real Estate Investment
Rental property involves buying of properties (residential or commercial) and renting them out to tenants for purpose generating recurring income. Investing in rental property is one of the most lucrative means of earning residual income. The success rate of investing in rental properties is high. This can be attributed to the fact that renting remains the best option to many people. In most cities, the number of renters is increasing day by day due to mobility of labor. And the increase in demand for rent has made the renting cost to go high. While this may not be pleasant to tenants, it is surely a good thing for real estate investors.
This is when real estate investors purchase properties, improve them by putting in some ‘sweat equity’ and then sell them at a profit. The term ‘sweat equity’ simply means the effort the investor put in to remodel, renovate or improve the property. Houses for flipping are usually purchased at auction or from a state of foreclosure. They are often sold at a lesser price than the estimated value of other properties in the same location. But most of them always require lots of effort from the investors to put them in a saleable state. The houses are then flipped and sold at a huge profit. Flipping houses are extremely profitable and it is another way real estate investors earn residual income.
Crowdfunded Real Estate Investment
Crowdfunding unlike rental property and flipping houses is an indirect way of investing in real estate. The investors don’t have full control of the property. It is usually done through Real Estate Investment Trusts (REITs) and does not involve direct or immediate ownership of the property. In Crowdfunding, properties are professionally managed and investors don’t have to worry about the maintenance of the properties. It is the new opportunity for real estate investors to generate passive or residual income.
Although, there are many opportunities for earning additional income in the real estate market, but investing in it is more complicated than buying stocks. To be successful in real estate you need to have adequate knowledge of the market or hire someone who knows.