There are several different ways to earn money in real estate. For example, you can invest in real estate yourself and then rent it out to tenants, or you can buy a property and sell it for a profit later on. Either way, there are always ways to take advantage of this lucrative market. Here are some tips for real estate income that you can use to get started.
Read Also: Why is House and Lot one of the Safest Real Estate Investments For Beginners?
What are the three (3) types of real estate properties?
Before learning how to make money in real estate properties, it is important to know what type of real property you own.
- Residential – specifically a real estate land and building property defined as a residence place, a house, a home, or a pad.
- Commercial – is a real estate or non-residential property that is intended for generating business income.
- Industrial – it is a real estate that develops and manufactures products. Some examples are Showroom buildings, general warehouses, research and development, and data centers.
Here are the ways How to earn in Real Estate under each classification:
For Residential Real Estate:
1. Long-Term Residential Rental
· Long-term rentals are anything that is longer than one month of rental, specifically; they are within the contract of the twelve (12) month period of the lease.
· It is the reliable income that you can expect within a period
· Since it is long term there is a minimal cost of maintaining the property.
2. Short-Term Rental for your Property
· These are potential income for your property that is on a daily basis, weekly or monthly basis.
· There is a greater potential income since the generation is on a short period. You can always do and decide whatever you want to do with your property without waiting for a long period.
· The perfect example of a shorter rental is Airbnb or Air Bed and Breakfast, a service or accommodation that caters to travelers looking for space to stay. Airbnb booking is a maximum of 28 days per night, it is flexible, and can accommodate travelers or those who need spaces around the metro for a short period.
3. Buying and Selling Property
· This income property generation in this real estate is you must refurbish-to-generate. It is neither a quick profit nor a fixed expected income, this scheme or stream real estate is you buy the cheaper property and flip it into a new one to sell it on a more profitable income.
· There is a need for a proper strategy of choosing the right property and location, and equipped with market information from demographics, business updates, renovation expenses, and its value before buying the property. Also, you must be prepared and equipped with a big budget for your renovation plan for the property and the underlying needed fees of the property.
For Commercial Real Estate – while residential real estate is for family homes and its residences consist of one to four units; commercial properties are properties that are to anything with five units up or several units.
Read Also: The 1% rule you need to know in Real Estate Investing
Here are some ways to earn income from a commercial property you own.
1. Rent out for office space – commercial real estate is the business property intended for generating income. A space for student facilities and a storage facility can be your options.
2. Advertising – unlock the income stream by offering your commercial property space for creative income solutions like marketing publications, signage, and for billboards. Expand the possibilities of generating income by offering your commercial property as a space for great access to social media and trade platforms.
3. Generation Income Services – Make use of your resources around your property by enabling fees for parking and additional fees for maintaining the area.
Industrial Real Estate is a real estate property that can massively generate income through the following business: production, manufacturing, warehousing, research, storage facility, and Logistics.
Advertising your Real Estate Property
To maximize your potential of running your real estate property in an income-generating business, advertising is important. Whether your property estate is for long-term or short-term, for Airbnb, for commercial rental estate, or for buying or selling, winning the question of How to earn in real estate falls on how you are going to advertise your property or where to promote it. The main objective and importance of advertising are to connect your business with people, with your target market, and be able to create strategies on how you can properly pitch your business. Eventually, these markets will be your customers and repeat customers as well. Proper advertising can result in a chain of generating income continuously.
Here are the ways how you can set down a market aim promotion target for your property:
1. Social Media is a medium where you can channel your power brand of advertising your property with a real-time time audience. Around 78.5 million Filipino people are using social networks and that benefits you in promoting your real estate business on Social Media. You can use all the platforms by engaging with your customers; make use of the Reels of Facebook, Tiktok, the creative studio of the Facebook page, and Instagram as well.
2. Digital Publishing world such as creating a website for your real estate rentals, email marketing, and posting your property to a website that advertises property listing.
3. Use Advertising standard marketing flyers and leasing signage to campaign your property.
Key points in how to earn in real estate:
The most important tips and things in earning in real estate are to diligently and constantly have your platform filled with all the details you need in doing the business, continuously do your research, and educate yourself about the real estate market, what’s new and what’s progressing. Learn about its procedures, its risk, its factors, the network, and its overall stream deals. Be committed and active to your objectives. Always have an updated handful of information about it and a concrete feasible plan to maximize the earning potential.
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Written by Rowena Lansang