You don’t have to work for the FBI, earn £70,000 every payday and tick all of the other “rich” boxes to make the most out of real estate. On the contrary, this is a field which is open to absolutely everyone – regardless of your income or general status.
Sure, it’s sometimes ringfenced with so-called “experts” often claiming that investments are only available for the rich and famous. In short, these experts are a fraud and you only have to take a look at the Adrian Rubin Crunchbase page to see just how effective wise real estate investment decisions work.
Following on from the above, let’s probe real estate in further detail at the various ways you can make money from real estate (in a legal way, without falling foul of RICO).
The cash flow income option
If you’re in the business to make money through the rent of a property this is undoubtedly the best option. In short, this involves purchasing a property before generating cash flow from tenants.
Of course, these properties don’t have to be apartments or other stereotypical buildings. They can be commercial enterprises as well, which is why this option is even open to the inexperienced investor.
The appreciation option
Next on the list is something of a long-term solution, but one that can really pay dividends if you’re happy to remain patient.
While you might read about victims who have suffered because of a market crashing, if you are seriously prepared to stick out real estate for the long-term you won’t fall into this group.
History shows that real estate prices rise and if you wait long enough, you can take advantage. The savvy investors will tend to choose opportunities which are about to change; for example, something like a new shopping mall is being built nearby to boost prices.
Due to the long-term nature of this option, it should go without saying that it’s a little riskier than the previous investment solution we spoke about.
Income related to real estate
This last form of investment is a little trickier to get your head around, and in truth it varies substantially from the other two options we have looked at.
When we talk about real estate related income, we’re referring to professionals who deal within the space. For example, a real estate broker falls into this category. While some of these have something of a bad reputation, with several scamming stories donning the news, overall their role is crucial in the real estate circle. They can earn exceptionally generous commissions by working within this space, and just buying and selling property on behalf of clients.
A completely different type of real estate related income could be in the hotel space. The company which is sourced to operate the front desk, hire the maids and all of the other everyday maintenance tasks will usually be due a percentage of the room sales.