14 Ways to Make Money in Real Estate Investing

Besides owning their own business, more millionaires have earned their millions through real estate. There are a multiple of methods of making money investing in real estate. Here are 14 ways:

1. Cash flow from rental income. This method is the traditional way of investing in real estate. You buy a property and then have a tenant that pays off your mortgage for you. The difference between your income and expenses is your cash flow which is monthly income for you.

2. Quick flips. Flipping is the art of purchasing a property well below market value. You then either quickly sell it to another investor who will do the rehab or rehab it yourself and sell it to an owner-occupant buyer.

3. Wholesaling. You buy houses as low as .10 cents on the dollar and then turn around and sell them after a marginal mark-up in price. Traditionally wholesalers will purchase REO properties in bulk from bank that allow them to get a substantial discount on the price

4. Bird dogging. Investors will pay people who bring them a good deal in which the investor will be able to profit. Bird dogging is the process of finding these properties and then selling the lead to investors.

5. Become a real estate agent. Real estate agents are paid commissions when properties they have listed are sold. Agents can also work as a buyer’s agent whereby they are paid commissions when their buyers purchase a property. Most states require real estate agents to be licensed.

6. Become a real estate appraiser. Most of the time a buyer will have an appraisal done a property they are considering purchasing to determine a fair market value. As a licensed real estate appraiser you can perform these appraisals.

7. Rehab for other investors. If you are a very skilled handyman, then you can do the rehab work on properties purchased by other investors.

8. Private money/Hard money lender. Some investors are unable to obtain traditional financing so they will utilize financing provided by private and hard money lenders. You will lend out money you have in exchange for a rate of return on the loan and points charged at closing.

9. Short sales. Property owners who are behind on their mortgage payment and on the verge of foreclosure are the targeted candidates for a short sale. You are able to purchase the property from the bank up to a 40% discount on market value. You can then turn around and sell the property at market value.

10. Probate properties. Probate is the legal process of administering the estate of a deceased person by resolving all claims and distributing the deceased person’s property under the valid will. Heirs may not be interested in the property but would be interested in selling the property at below market value so they can receive the cash proceeds from the sale.

11. Buy notes. Property owners will sometimes sell properties and finance the sell directly. You can purchase the note and the payments associated with that note at a discount.

12. Buy NNN leases. NNN is a triple net lease when the property owner is responsible for paying for all property repairs, taxes and insurance. When a Burger King opens a new store, they will generally create a 20 year lease for the property and then sell that lease so they can recoup some of their costs in building the building. If you purchase this lease you will receive monthly payments from the property owner without any obligation in maintaining the property.

13. Property management. Investors may not have the time to manage their own property or are unable to manage it if it is out of town. As a property manager you can get paid for managing their properties for them.

14. Become a coach. If you have extensive real estate knowledge, then you can charge to become a mentor or coach to newer investors. Beginning investors will pay to gain from your expertise.