Earning money steadily is one of the most surefire ways to save up and prepare for the future. However, this can take a few years or decades before you finally reach financial independence. On the other hand, some people try their best to include an extra source of income while working a 9-5 job. These people are the ones who reach success quickly.
If you also want multiple sources of income, you might be interested to know that owning a property can provide that. This article will teach you how you can monetize your real estate property.
How to Monetize Your Real Estate Property
If you own a real estate property, but you’re not living in it, you have two options. You can either let it become a liability since it would probably cost you a few hundred dollars every few months to maintain it, or you can let it become a source of income. If you chose to have the latter, below are some of your best options to monetize it.
The first money-making option is to open it up for residential rental, also known as a long-term rental. This is one of the most common methods to monetize a real estate property, and it’s also one of the best. The first advantage is that you will earn a steady monthly income from rental payments. The next benefit is that the title of the land and property still belongs to you. The only downside to this is the cost of regular maintenance.
The next method you have is short-term or vacation rental. This can generate lots of money into your account and can earn significantly higher than a residential rental. However, the outcome depends on how frequently your place is booked. Furthermore, your property should be somewhere near popular establishments or tourist destinations. Otherwise, people would not have a good reason to rent your place.
If you want to earn a significant amount of money in a single transaction, you can consider selling it. This will provide you with hundred-thousands of dollars, but you will, of course, lose the ownership of the home. Selling a property is often an option for owners who wish to use the money for other investments and expenses such as hospitalization or a startup. One of the biggest challenges of selling a home is finding a potential buyer. It’s quite stressful, but you always have the option to hire highly qualified estate agents. They will be the ones to look for a buyer, and in exchange, they will get paid anywhere around 5-15% of the deal.
Now that we’ve mentioned it, you can also use your property to start a business. There are lots of business opportunities that can start at home, but you might need to shell out some of your funds for renovation. Salons, coffee shops, and clinics are all business ventures that require little renovation. You just need to find qualified employees to guarantee your success. One major advantage of starting a business in a property you own is that you don’t have to pay for a lease or rent.
How to Own a Property
If all of the things we’ve mentioned above sound interesting to you but you don’t have a property, just know that there are plenty of methods for you to own one. To help with that, below are some of the most common options.
Applying for a loan is perhaps the most common method to own a property. However, you will need a good credit score to get approval. If you currently live someplace else and you just want to expand your assets by owning multiple properties, then there’s a way for you to pay for a mortgage without going bankrupt. Once you applied for a loan and it gets approved, put the property up for rent. Through this, renters will pay a huge amount of the mortgage, but the title of the property will belong to you.
If you were able to save up a considerable amount of money through years of hard work and financial intelligence, then you can always buy a property in cash. Your best method would be to look for distressed sellers who are looking to sell a house for a lower price because of their urgent need for funds. However, you may want to have the property inspected first to ensure that it does not require major renovations.
The real estate market is quite diverse, which means there are plenty of methods for you to earn money just by owning the property. You just have to be creative and think of all the possibilities in front of you.