HOW to MAKE MONEY IN REAL ESTATE WITHOUT BEING A PROPERTY OWNER?

This post may contain affiliate links which may compensate us based on your interaction at no cost to you. Please read the disclosures for more information.

Although real estate is one of the wealthiest industries, people are still hesitant to enter the market. Most people believe that they must have loads of money to purchase property but that isn't always the case.

Even if you're just getting started, you can still make money in real estate without owning property just by being knowledgeable about how to maximize your money. Let's explore.

WHY YOU SHOULD INVEST IN REAL ESTATE
So why should you look into real estate to generate income? There are a number of other ways to do so like starting up an online business or venturing into content creation among others.

According to Terré Holmes, there is a need for the racial wealth gap to be closed and investing in real estate can help people of color earn the financial freedom that they desire and provide economic security and opportunities.

From her own experience, after going through a divorce, Terré emphasises how it  is important for women to have their own sources of income so they are not left helpless when a relationship goes south especially when the money was the primary bread winner.

Other also reasons include;

• The considerable ability to generate cashflow from real estate - For both rental owners and renters, a substantial amount of money can be generated if a rental property is well priced by a rental owner or utilized for cashflow generating options like AirBnB by the renters.
  
  
• Real Estate values appreciation - If you invest in your property by renovating, you increase it’s value and this gives you  greater return on investment . This applies also applies to both the owner of the property and renter. 
• You may be eligible for tax deductions - If you are able to buy a property and rent it out, you own a business rather than just an investment. This allows you to take many deductions just like you would if you owned a brick-and-mortar store.These can be expenses you incur to maintain the property or even conduct business. Any expenses you incur to maintain the property, handle business, or even conduct business can be written off reducing your tax liability and increases your profits.​

---

WAYS TO GENERATE MONEY IN REAL ESTATE
Now that we clear on the WHY part, here’s how to make a living in real estate without owning the property. 

• Rent your Rental - This can also be called rent arbitrage. Renting a home with the goal of listing it on Airbnb is the concept here. So, you sign a long-term lease on a home with the owner at a certain price, and then you turn earn profit by listing the property on Airbnb at a price that will pay for your rent and then some! But not everyone can do this because you have to get your landlord's approval before subletting their property. If your landlord isn't happy about the concept, you can propose to share in the earnings; this might assist to close the sale.

• Real Estate Wholesaling - Without making a sizable initial investment, real estate wholesaling is an excellent option for people to enter the real estate market. It is a type of property flipping where the investor, also known as the wholesaler, signs a contract to purchase a house they think is being overpriced. The property is then profitably sold to the end user. A novice might learn crucial bargaining skills and gain understanding of the real estate market via the process. The charge associated to the transaction, which is often a fixed percentage of the total cost of the property, is how the wholesaler makes money.
• Invest in Home Construction - Real estate is more than just acquiring property. The creation of new neighborhoods in expanding metropolitan regions is the responsibility of an entire industry of homebuilders. These businesses could be involved in several stages of the building process for homes. Consider all facets of the company while assessing homebuilders. If the company is only focused on very high- or low-end properties, consider whether the company is focusing on an area with bad real estate performance and compare the focus to real estate trends.​

• Invest in a REIT - Companies that own and, most often, manage income-producing real estate properties are known as REITs. They are perfect for people who want to produce passive income and diversify their financial portfolio. Although each REIT runs differently, they all usually strive to make money through real estate-related activities and distribute dividends to shareholders. Due to their conservative nature and potential for growth investors are attracted to investing in them because they are the best way to profit from real estate without actually owning any investment property. 
• Real Estate Mutual Funds - This is another way to make money in real estate without owing property. It is probably the cheapest and easiest way for investors to get started on real estate investing. Since property values are less volatile than traditional stocks, real estate mutual funds have the advantage of providing investors with strong inflation protection. This kind of stability lowers the risks generally present in conventional mutual funds while also providing investors with higher return rates.
  
  
• ​Real Estate Notes - Another option for investors who want to invest in real  estate but don't want to deal with actual physical properties is real estate notes. Banks and private investors both sell real estate notes. When you purchase them  from the bank, you are actually doing so at a price that is much lower than what most retail investors would be willing to pay. They can  also purchase these notes from other individual investors who are actively looking to buy or remodel real estate properties. If you want to use this strategy to generate money in real estate, just be sure to do your research.
  
  
• Online Real Estate Investing - It is now possible to generate money in real estate remotely because of technology with the help of  real estate crowdfunding platforms. This enables investors to pool their funds with other investors. With the help of crowdfunding, anyone can now participate in projects that were previously only open to wealthy investors. Investors can start using several online real estate investment platforms for as little as $500. Contrary to common assumption, it is highly feasible to profit from the real estate market without actually owning any property. The opportunities are there; it just takes a bit more time and attention to find them.
  
  However, conduct your research, double-check and seek advice from others who are more knowledgeable before committing all of your money to a particular investment opportunity. By doing this, you'll have a better chance of making a solid investment return and growing your portfolio
  
  

Still in doubt about investing in real estate, listen to Terré Holmes in Episode 105 of The Money Exchange podcast where she shares how you can make it happen. You can also check it out here on YouTube.​