Real Estate is one of the classic passive income sources. It is, in fact the basis of most of the wealth in the world. Property provides food, minerials to make things with, places to live and work, and is where we raise animals.
If you are going to turn real estate into an income producing part of your life instead of just a costly place to live, start by figuring out how to get started. Here are some ideas:
1. Start at home. Can you rent out a spare room? Would you like a homestay student? What about cleaning your junk out of the garage and renting it to someone else to store their stuff? Can you sell parking space?
2. Can you rent or borrow agricultural land to generate income? Look around for property that is not being used and approach the owners for permission to clean it up and use it. Even an acre can support a small herd of sheep. Grow some wool, fill the freezer with lamb, and sell of the fattened sheep at auction. Chickens are another possibility. Even on a city apartment balcony you can suppliment your budget by growing vegetables in pots.
3. Consider a real estate based business such as mini storage. It may make sense to rent a warehouse or vacant large store and divide it up into smaller cubicles to rent out. While it takes effort to lease up a mini storage once clients are in they tend to stay for a long time. If you have more time than money you could approach the owner of a suitable space with a business proposal to set up the mini storage at their cost, with you providing the management. You would split the revenues with the property owner (they get the biggest share).
4. Learn about lease options. There are techniques to buy real estate on a lease option, than resell it to someone who can't qualify for a bank loan, making a price and interest rate spread.
5. Marinas are a specialized type of real estate that generally involve leased foreshore rights, constructing docks and renting out the berths you created.
6. A corporate housing business can be built with other people's real estate. This specialized sector of the travel business continues to grow as people realize there are residential alternatives to extended stay hotels.
7. Invest in private mortgages and notes. This takes cash and you need to make sure that you are properly secured, but private mortgages can offer much better rates of return than putting your cash in a savings account. The banks are just going to invest in morgages with your money anyway.
8. Study up on flipping properties. With the right business plan you can get an investor to back you in buying a property, fixing it up and reselling it. Many people don't have the time or skills to flip property but would love to back someone who knows how to do it in exchange for say 50% of the profits.
There are many other ways to create recurring income from real estate without actually owning it, so look around, read some good real estate investing books and find those opportunities.
If you are going to turn real estate into an income producing part of your life instead of just a costly place to live, start by figuring out how to get started. Here are some ideas:
1. Start at home. Can you rent out a spare room? Would you like a homestay student? What about cleaning your junk out of the garage and renting it to someone else to store their stuff? Can you sell parking space?
2. Can you rent or borrow agricultural land to generate income? Look around for property that is not being used and approach the owners for permission to clean it up and use it. Even an acre can support a small herd of sheep. Grow some wool, fill the freezer with lamb, and sell of the fattened sheep at auction. Chickens are another possibility. Even on a city apartment balcony you can suppliment your budget by growing vegetables in pots.
3. Consider a real estate based business such as mini storage. It may make sense to rent a warehouse or vacant large store and divide it up into smaller cubicles to rent out. While it takes effort to lease up a mini storage once clients are in they tend to stay for a long time. If you have more time than money you could approach the owner of a suitable space with a business proposal to set up the mini storage at their cost, with you providing the management. You would split the revenues with the property owner (they get the biggest share).
4. Learn about lease options. There are techniques to buy real estate on a lease option, than resell it to someone who can't qualify for a bank loan, making a price and interest rate spread.
5. Marinas are a specialized type of real estate that generally involve leased foreshore rights, constructing docks and renting out the berths you created.
6. A corporate housing business can be built with other people's real estate. This specialized sector of the travel business continues to grow as people realize there are residential alternatives to extended stay hotels.
7. Invest in private mortgages and notes. This takes cash and you need to make sure that you are properly secured, but private mortgages can offer much better rates of return than putting your cash in a savings account. The banks are just going to invest in morgages with your money anyway.
8. Study up on flipping properties. With the right business plan you can get an investor to back you in buying a property, fixing it up and reselling it. Many people don't have the time or skills to flip property but would love to back someone who knows how to do it in exchange for say 50% of the profits.
There are many other ways to create recurring income from real estate without actually owning it, so look around, read some good real estate investing books and find those opportunities.
Original Articles. Constant-Content.