With more and more investors getting involved in real estate investment, it is important to think outside the box and find creative ways to make profits on real estate investments. In our latest post, we will discuss creative ways people are making money in real estate!
Real estate investment is a great way to generate revenue for you and your family. There are all sorts of niches you can pursue other than the traditional single-family house. Keep reading to learn about some of the different options available to you in Metro Detroit!
Vacation Rentals
People are ditching hotels and opting to stay in places that feel more like home when they travel. Fortunes are being made on sites like Air BnB and Nomads. Air BnB and VRBO. With a vacation rental, you have the flexibility to rent it when you want, and not when you don’t. You will often be able to make in a week what would have taken you a month with a standard rental. Plus, you can use the house yourself whenever you please!
Short Term Rentals
More and more people are adopting a nomadic lifestyle. With the rise of freelancing and working remotely, people are able to do their jobs from anywhere in the world. You can choose to offer a short-term rental for business professionals who might be passing through or anyone who isn’t interested in a long-term commitment. Many areas have a seasonal time of year when short-term rentals are much more popular.
Corporate Housing
Is there a major company nearby? Or are there plans for one to open an office in the area soon? Large corporations seek out quality housing for new employees as well as employees and their families who are transferring from another area. You can choose to invest in single or multi-family properties. Make sure to let the corporations know about your property and what you will be able to offer them!
Flipping Contracts
Also known as wholesaling, this is the process of finding a deal, securing the sale and assigning it to a different buyer. You will collect a fee for your work. You won’t likely get rich from one, however over time you should be able to develop a solid business when you have the right formulas in place.
Become A Hard Money Lender
A hard money loan is a short-term loan that is secured by real estate. They are funded by private investors as opposed to banks, credit unions, and other traditional lenders. The term is usually for 12 months, however, sometimes loans will have a period of five years plus!
Commercial Real Estate
You may not have considered buying a commercial property, but you should. The returns are there and the maintenance and need to be hands on is usually much less. As long as the business is going good, your tenants are likely to be around awhile, thus decreasing turnover costs. You can feel confident in knowing your property will be taken care of as a business owner will always want to provide a clean and professional ambiance for their clients. You can divide commercial property into many offices, rent the building as a whole or choose to fix it up and resell.
No matter how you decide to invest in Metro Detroit make sure you find a niche you enjoy and will see profits from. Do your homework and consult your accountant and attorney before making any sudden purchases! Not all properties will offer the returns you are after so make sure you know what you are getting into before you buy!