If the current global pandemic taught us anything, it is that no source of income is immune to unforeseen circumstances. Companies that were once rock-solid have been knocked on their heels by a virus that has forced most Americans to stay isolated in their homes. This revelation has motivated many individuals to explore various ways to create additional streams of passive income.
Investing in real estate has always been a popular idea amongst those who promote diversifying your income. However, not many of us have the extra cash available to purchase another home or a building filled with offices. Therefore, we tend to see investing in real estate investments and income properties as opportunities reserved for the wealthy. You may be surprised to learn the types of real estate investment options that are available to you.
Renting Out A Spare Room
The real estate market is not just about purchasing and renting out additional properties. Fundamentally, it is about owning space you are not occupying and renting it out to someone who needs it. An unoccupied room in your home can be rented out with ease. Now, you may not be open to having a permanent house guest, but it might not be so bad if someone occasionally rented out that room while they were in town.
Think about the company you work for. Do they often have employees visiting from other offices? Instead of the business spending hundreds of dollars on a hotel room, they can pay you to host that employee for the night. If you live in proximity to a business park, you can strike up a partnership with those companies. Research how much the average hotel room goes for and then offer to charge the company half. That is money that can go towards paying your mortgage or paying off credit card debt.
Converting Your Basement
Investing in real estate is all about getting creative with space you already own. Your basement is equipped to handle more than just Christmas decorations and boxes of your old stuff. This is especially true if your basement has been built to function as an apartment. For example, does it come equipped with amenities such as a bathroom, kitchen, and separate entrance? If yes, that is a prime space for rent out to an individual or couple.
To start, you will need to find a space for all of your stuff to go. If you plan on renting out a storage unit, make sure the cost is less than what you will be receiving as rent from your new tenants. Then, have a professional cleaning crew come in to ensure the space is sanitary and liveable. Lastly, you can begin showing the space to prospective tenants. We highly suggest you research what makes up an ideal renter and make sure you have all your paperwork in place ahead of time.
Invest In Real Estate As A Group
As we mentioned before, it is possible you may not have the capital necessary to purchase a rental property to make money in real estate. However, investing in real estate does not have to be a solo venture. Make a list of family and friends who you feel are reliable, trustworthy, and smart enough to be your partners in this type of venture. Together, you may be able to combine your money and purchase a property to rent out.
The key is to start small and work your way up such as buying a beach house or small office building. This will allow you to generate income quickly that can be reinvested in future rental properties. Before you begin, everyone must sign a written agreement regarding how profits will be distributed and how costs will be handled. If someone is putting in more money, they should be getting a larger percentage of the profits.
Property is the most lucrative item that you can inherit from a family member who has passed away. It is tempting to take the property and put it on the market to score some quick cash to pay off debts or go on a nice vacation. However, what if you took a long-term approach when deciding what to do with this new house you now own? What if you kept the property and rented it out to make passive income every single month?
Believe it or not, there is a market for people who want to live in a home but not own one. This may seem a bit odd but the reasoning is quite valid. For starters, they have no interest in paying a massive mortgage payment each month nor do they want to be locked into a 30-year commitment. These are people who are willing to commit to living in one place for an extended period of time but want the freedom to pick up and move at the end of their lease.
Investing In Self Storage
When thinking about investing in real estate, we tend to limit our options to traditional properties such as homes, apartments, and office buildings. However, you may be surprised to learn that self-storage facilities are one of the fastest-growing real estate investment options on the market today. This is due in large part to their ability to survive and thrive during both the 2008 recession and the current COVID-19 pandemic.
If you think about it, investing in self-storage is a creative strategy and can be considered a safe bet. When the economy takes a hit, people tend to lose their jobs. Therefore, they are often forced to move out of their current living arrangements and move in with family or friends. This requires them to store their additional furniture and other items in a storage unit for at least a few months. In terms of obtaining funds, it is easier to convince a bank to provide you a loan for a business that has been proven to benefit in the current economic conditions.
Being able to invest in real estate may be closer to becoming a reality than you may think. Just because you are not rich does not mean you cannot find creative ways to generate income via real estate investments. This includes renting out space you already own or joining with trusted family and friends to split the cost of purchasing a new property. The key is to start small, have an open mind, and focus on ways you can reasonably invest the capital you have to begin generating passive income by investing in real estate.