Generally speaking real estate investing success does not happen overnight. There are occasional exceptions to the rule but typically there is a process to the business. One of the ways to keep your business going is by constantly funding it with capital. Increased capital opens up the door to new ways of marketing and lead generation which will bring a continual flow of leads to your pipeline. Finding this capital can be a challenge but it doesn’t have to be. Once you make the commitment to invest in real estate you can still be open to other revenue streams. Until your business really takes off you should always be looking for ways to make money. Here are five ways to generate income while investing in real estate.
- Keep A Day Job. Investing in real estate doesn’t mean you have to make a full time commitment. There are thousands of investors who juggle their real estate business while still working full time. This can certainly be a challenge but with the increases in technology is much more realistic than in the past. Instead of having to physically talk on the phone and run to a fax machine you can do everything from your mobile device. There will be some tricky spots from time to time but you don’t need to quit your job before you have to. Not only does your full time job supply a bulk of your income but you also receive health care and other valuable benefits from your employer. Earning a steady paycheck also allows you to invest without having to watching every dime and worry where your next deal will come from. Investing full time and making it your business is great but only when you are ready to take the next step. Keep earning a paycheck from your employer as long as you possibly can.
- Real Estate License. As a real estate investor you always want as many different revenue options as possible. While investing in real estate may be your long term goal obtaining your real estate license can help you get there. Real estate is very similar to investing in that you can do it on your own terms. If you find a broker who is on board with your plan you can use your license as often or as little as you like. With a license you can close just a few deals a year and generate extra cash flow. Think about all of the people you know that may have the need for a real estate agent. Outside of your network you can also make or save money on the deals you are directly involved in. Getting licensed isn’t free and certainly isn’t easy but if you look at the big picture not only is it a great way to learn the business but you can also generate extra revenue.
- Wholesale Deals. You should always try to find ways to earn on every deal you are involved in. There are times when a particular deal may not be for you but it doesn’t mean you should walk away from it. If you come by an opportunity that may be perfect for a fellow investor you should consider trying to wholesale the deal. This is the process of finding a discounted deal and connecting the seller with and end investor. For your troubles the end investor offers you a flat fee. Once the contract is signed you collect your fee and simply move out of the way. You don’t have to worry about going through the closing process or what you are going to do with the rehab. Wholesale fees received won’t allow you to quit your day job but they can be a nice supplement until your next deal. The best part is that you can earn on a deal that you wouldn’t normally earn on.
- Real Estate Blogging. There are several other ways to supplement your income while building your real estate business. If you have passion and knowledge of the business you should look to contribute to as many blogs as you can. There are many websites and individual investors who will pay for your blog posts. Not only is this a great way to learn about specific areas of the business but you may be able to expand your personal network. Earning part time revenue starts with accepting that most income received will not be a home run. With blogging you will hit many singles but for the time you put in it is worth it.
- Bird Dogging. The more people you meet the better chance of finding someone you connect with. At one of your networking meetings you may bump into a fellow investor who tells you they are looking to expand into a particular market but are having trouble finding deals. Here is where you can offer to find deals for them. Bird dogging is the process of driving a market looking for vacant looking or distressed properties. With the address you attempt to find the owners information with the hopes of gauging their interest in selling. Any warm lead you get you can pass along to the investor you are working with. For your time and effort you may get a percentage of every deal that closes or a flat fee for the day. Either way you can make money doing something you may normally do anyway.
As a new investor there are plenty of sacrifices you need to make. If you really want to invest in real estate there are ways to generate income that will help achieve your goal.
