My One Hundred Things: 5 Biggest Ways to Make Money in Real Estate Right Now

These tips on how to make money in real estate honestly should prove applicable to anyone involved in real estate, whether you’re a Realtor, a lender, or just somebody trying to sell or buy a home.

Sell it: Yes, existing home sales are down, but property is still very much exchanging hands. Millions of homes will be sold this year, and many of them will be profitably sold. Just because all the media reports is blood in the streets does not mean that’s all that happening. Do you want to sell anytime in the next several years? Look at your options…this really may be the best time for you to sell, depending on what you want to do. Do you want to move up to a larger home for give your growing family some space? Even if you take a hit on your sale, you can buy carefully and get a discount, ending up very much in the black at closing. Look at you WHOLE situation, not just the negative. And for Realtors, I don’t need to tell you that earning commission on deals these days is going to be commission where you truly EARN every penny This is good work, and I wouldn’t recommend navigating such choppy waters without a real professional to help you. Competent Realtors are needed now more than ever.
Buy it: This hopefully is a no brainer. Is it a good time to buy? Are you kidding me? I just saw a duplex in Lafayette, IN for less than $40k. This doesn’t mean it’s a good time to buy everything, everywhere. Be prudent, but it’s an AWESOME time to buy property.
Hold it: I don’t recommend anyone do any short term flips these days. Rehab opportunities are everywhere, but this doesn’t mean quick cash. Hold these properties. This is a time when nearly everyone is super negative. NPR just reported yesterday that our confidence in the economy is something 25 (out of 100), insane! When everyone is down in the dumps, it’s a prime time to start a business, seriously. And if you’re in a position to competently invest in cash flow real estate, that is an opportunity to make money in real estate that ought not be passed up.
Improve it: News says that there is downward pressure on rents nationwide. It’s not true. Rents are down some places. They’re up in other places. Don’t make assumptions. Look at your market, and decide for yourself…are you charging grossly low rent for your property? I’m a big advocate of keeping rents slightly lower than market rate. If you do it right, you can create a real win-win for you and the tenants. But this does not mean you should necessarily use your mortgage payment to dictate what you charge for rent, which is an amateur mistake. Who is going to pay when the furnace goes out or the roof needs fixed? You need positive cash flow to cover these things. Also, look at your property honestly. Is there any opportunity to improve it for the next tenants coming in? Providing a nicer place can translate into better rent and/or longer tenancy.
Blog it: Using a blog is key, period. Use it to promote your listing. Use it to connect with people and build your network. Use it to get leads.

The bottom line is this: the market is down, but people are acting like it’s dead. C’mon now. The world goes on spinning, and there is a lot of work to be done. Basic common sense still runs the game here. If you want to make money in real estate, there has never been a better time. If you’re a real estate professional who is thinking of hanging it up, think about this: Realtors are quitting every month right now, just because this business has gotten tough. That means your market share goes up every month that passes. Look, if you got into real estate for easy money, you got into it for the wrong reason anyway. And maybe real estate is not the business for you. If not, fine. But don’t quit because it’s tough in RE, just to go try and find easy money somewhere else. If you do that, you’re just making the same mistake all over again. EVERY business gets tough now and then. To any of you who’ve lost a bunch of money in real estate over the last year or so, this is how I feel about it: NOW is the time to build real wealth wealth in real estate, not then. Past years have been full of loose money and easy deals, and it’s fun to be able to sell a house without any real work or expertise, but it’s not what building a real business is about. Building a real business is hard work. NOW is the time to do it. The timing is perfect. Real professionals in this business are needed now more than ever. This is the time that the real leaders in real estate will step up and create real value for their clients. I hope you stay along for the ride!

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