Earning $250,000+ Annually Through Savvy Real Estate Investments

96

I’ve been a full-time real estate investor for many years now. I got into it out of necessity—I had a Master’s degree but no job or money. With no experience and no funds, it seemed promising because of the potential for huge profits. I didn’t know anything about real estate or even how to fix things. I couldn’t even invest $1,000. The only advantage I had was my dad, who was an outstanding mentor and a classic entrepreneur.

Nowadays, there are easier ways to start investing in real estate. Online platforms like Fundrise let you start with just a small amount of money and get exposure to real estate investments nationwide. It’s now one of the top ways to earn and build long-term, passive wealth in real estate. When people say you can buy houses with no money, they’re telling the truth. Today, I’ll share four of the best ways to make money in real estate, and we’ll go over the pros and cons of each method.

4 Ways to Make Money in Real Estate Investing

1. Online Real Estate Investing Sites
2. Lease With an Option to Buy
3. Option a Property
4. Sell Wholesale

Online Real Estate Investing Sites
Online investing sites have totally transformed the game recently. They allow you to own fractional shares of real estate projects. This means you get involved in real estate without needing to put up a lot of capital or deal with tenants. It’s a hassle-free income strategy.

With platforms like Fundrise, you can start investing with as little as $10. You open an account and choose from various portfolio options. Fundrise charges a low management fee, around 1% per year. In 2021, their annualized return was 22.99%, and even in a less favorable 2022, the return was 1.5%, which was better than many REITs.

Pros

• You get a lot of freedom.
• You can invest in real estate with very little money or effort.

Cons

• You can’t leverage any local expertise you might have.
• You miss out on the pride of owning, improving, and visiting a real estate project yourself.

Lease With an Option to Buy
This method involves leasing a property from a seller with the exclusive right to purchase it within a certain time frame. You then find a tenant-buyer willing to lease the property with an option to buy, creating what’s called a "sandwich" lease option.

Pros

• You can acquire and make money from property without your own funds.
• You make money from the non-refundable deposit and the monthly lease paid by your tenant-buyer.

Cons

• Most tenant-buyers have poor credit, and only a few will end up purchasing the property.
• You may have to deal with evictions and property damage.

Option a Property
This is similar to leasing with an option to buy, but the seller doesn’t accept monthly payments. You have the exclusive right to buy the property at a set price within a certain period.

Pros

• You avoid dealing with tenant issues and evictions.
• You only make money if you find a qualified buyer within the option period.

Cons

• If you don’t find a buyer, you don’t make any money.

Sell Wholesale
Wholesaling involves buying properties at a low price and selling them to rehabbers or end-users without making any repairs. It might require cash, but it’s often the quickest way for both new and experienced investors to earn money.

Pros

• It’s quicker and easier than other methods.
• You make money by finding good deals and selling them without doing any rehab.

Cons

• You need to make a lot of offers to get one accepted, especially from banks.

What’s the Best Way to Make Money in Real Estate?
The key is to be versatile. Successful investors don’t focus solely on one strategy like rentals or rehabs. They become masters of negotiation and relationships, understanding that the real money is in managing transactions, not fixing properties. As you build your career, maintain a variety of transaction types to maximize your opportunities.

For newcomers aiming to make millions, focus initially on options and wholesale deals. As you advance, acquiring some cash through private lenders or banks can make the process easier and cleaner.

Making money in real estate investing doesn’t always require money, but it helps. As you grow, so will your confidence in managing deals and the money at risk. My first small check gave me the confidence to keep going, and the larger checks followed with proper training, hard work, and a little luck. Let me show you how to get there.