As the retirement age window continues to expand thanks to medical and lifestyle improvements, we’ve had to start seeing retirement in a completely new light. People are living longer, and that means their retirement funds need to sustain them a lot longer too. Many people also don’t want to stop working or taking part in business ventures just because they aren’t in the traditional workforce anymore.
If you’re looking for a way to earn money, one of the best channels is real estate. Real estate investing is a simple way to earn more money, give yourself financial freedom, and even help your children with college tuition or their own business ventures.
The only challenge is, for most people the idea of investing in property sounds expensive and quite daunting, but it doesn’t have to be. There are some simple strategies you can get started with that don’t require a lot of money. Here are a few.
Wholesaling has gained a lot of attention as an investment strategy in the last year. Actually, if you search the term in Google Trends, you’ll discover that interest in it has skyrocketed. For people looking for an easier way to step into the world of investing, it’s a great model to consider, but what exactly is wholesaling and how do people make money with it? When wholesaling, you would look for a discounted property, put the house under contract, find a new buyer, and then charge the buyer a fee. What makes this model so great is that you’re usually looking for distressed properties which have become a burden for the owner and taking it off their hands, and then you get to earn your profit without even renovating or flipping the home. It’s a more hands-off investment strategy, making it perfect for retirees who want to jump into real estate without massive projects that last months and months.
How do people leverage the equity they have in one home into multiple rental properties? They use a method known as BRRRR, which stands for buy-renovate-rent-refinance-repeat. People use the equity in another home to basically recycle their capital and then apply it to buying more homes. If it's done with good business sense, it actually gives you the opportunity to scale up quickly, and build a solid portfolio without putting a whole lot of money down. If you have a mortgage already, you could use your equity to fund your BRRRR strategy. Using a reverse mortgage calculator, you can find out how much you can get, and use that to get a massive investment into your portfolio.
You don’t have to actually have a house on a property to earn money from it. Many investors would rather not deal with the hassle of property taxes, tenants and other challenges that come with rentals, so they decide to just buy and sell vacant land. Land is great because for starters, you don’t need a whole lot of capital to get started, and all it takes to find investments is to drive around the outskirts of your city, spot some land, research the owner and contact them to make an offer. You can sell the land to developers, or you can hold it for the long haul so that the land value increases. Land is an often-overlooked strategy that actually works well for people who would rather not deal with the headaches of being a landlord.
Not every investor can easily get a loan from the bank in order to fund their deals. What most of them do is find people in their circles who would want to be their private lenders. If you have some cash, you can become one of these private lenders, and invest in real estate without having to do the heavy lifting. By just providing the money they need, you can earn an amazing return with relatively low effort, and if you’re working with someone who is really good at what they do, they can grow your investment across multiple deals. It’s another great way to take part in investing without the challenges of doing it full time.
The great thing about all the methods mentioned is that you can get started without prior experience by investing in coaching and educational programs that leverage the knowledge of other people. Finding the information you need is as simple as doing a Google search, watching a few YouTube videos, and signing up for a program. This is where you’ll get the support that will set you up for success.