A lot of people turn to real estate to make some money. Maybe that’s how you found your way to creating your own portfolio. After all, according to John D. Rockefeller, “The major fortunes in America have been made in land.”
Initial purchases are fine, but eventually, what happens? That’s right – portfolios can begin to look dull or stagnant. Thankfully, if you take the time to make some real estate investment moves, you can elevate your portfolio and add some spice back into your life.
Are you ready to make this change? Here are 4 things you can do to increase your earnings.
1. Consider renting out the property that you own.
Offering your property as a rental is an option for increasing your funds – and it doesn’t matter whether you have a mortgage on the property or you don’t. More people than ever are opting to rent rather than buy. This means that if you have property available, by offering to rent it out, you can bring in additional income.
The idea behind renting out your property is to make sure that the rental income you bring in is higher than your mortgage and other expenses of maintaining the property. If you can’t swing this, then renting may not be the best option.
2. Take steps to increase the value of your property.
Even when the market is down, you can hold off long enough to likely make a profit on the sale of your property in the future. However, while you are waiting, there are a few things you can do on your own to try to increase your property’s value.
- Make the outside of the home desirable.
- Do minor kitchen upgrades.
- Consider adding a new garage door.
Avoid heavy remodels that tend to be costly and will likely not have as big of an impact on value as you’d hope for.
3. Buy property.
If you don’t own any real estate currently – or if you’d like to add to your portfolio – buy property. However, here’s that catch – you can’t just buy property any time. Well, technically you can, but if you are looking to make money, you want to buy smart and at the right time.
- Buy during the off-season. Most people tend to buy and sell during the summer months. If you want to get the best deal and be able to negotiate successfully, consider purchasing your property in, say, January or February.
- When the housing market drops, people (and investors) want to off-load their real estate as quickly as possible. This can be a great time to score a deal on property.
When others are running the other way, you buy – because you know eventually everything is going to turn around and that property is going to be desirable.
4. Own real estate without the hassle.
How is this possible? By buying into REITs. Short for Real Estate Investment Trust, an REIT is a way for you to own a piece of a real estate investment with many other people. You can reap the benefits of doing this without actually having to have the full weight of a property on your shoulders.
Many REITs are hotels, shopping centers, commercial business locations, apartment complexes, and more. You invest your money in these properties online with a brokerage account. Then, as a shareholder, you will receive dividends regularly.
While you will need to get the hang of buying and selling these REITs as if they were stocks, it is a great way to earn some extra income in real estate without all the struggles that come with it.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out atwww.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube, Bigger Pockets and REI CLub and LinkedIn.