Doing real estate on the side is a fantastic way to earn extra money. You can also get into a variety of different areas of real estate, such as house flipping, wholesaling, and even becoming a general contractor.
Wholesaling
Real estate wholesaling can be a lucrative business. But, before you go out and buy your first property, you need to know a few things. It’s important to realize that there’s no guarantee you’ll make money. However, if you’re motivated and have the right tools, you can earn a lot of cash.
Real estate wholesalers look for distressed homes that have a substantial discount. The difference between the purchase price and the sale price is what they make their profit on. Most wholesalers keep about 10% to 25% of the gross profit on each transaction.
Some wholesalers do a lot of direct mail campaigns. Others have an online presence. Still others work a few hours a week. Whatever the case, the best wholesalers have access to a network of investors.
Wholesalers work with motivated sellers. These are people who are in a tight spot and who would prefer to sell their property. They may have replaced the A/C, gotten new appliances or paid the property taxes.
House flipping
If you have a passion for real estate and a little bit of extra cash, you can consider house flipping as a part time business venture. However, you should be aware that this kind of enterprise entails a lot of work, financial risk and uncertainty.
One of the simplest ways to decide on a home to flip is to research your local neighborhoods. Identifying a desirable neighborhood can help you choose a property that will sell quickly for a good price.
Another useful trick is to hire a good general contractor. A good one will be able to give you a comprehensive review of the property’s condition, as well as help you avoid investing in a money pit.
A good home inspector will also tell you if there are any problems with the property. This information can be useful in the long run. You can then make informed decisions about how to repair the house.
In addition, a good real estate agent can be invaluable when it comes to evaluating a prospective purchase. Your real estate agent can help you understand the buyer’s needs and wants, as well as offer insight into the local market.
Bookkeeping
One of the best ways to earn extra money on the side is to start a bookkeeping business. Not only will you make great profit, but you’ll also have great flexibility. You can work from home and not be tied down to a desk.
Although starting a bookkeeping business isn’t always easy, there are some steps you can take to make it happen. The most obvious is by taking a bookkeeping course. Another option is to contact businesses directly.
In addition, you might want to consider hiring a virtual assistant. These professionals can help you handle daily operations, including making sure you pay your bills on time. This could be a particularly helpful option if you are a busy professional.
A good real estate bookkeeping system will keep your personal and business income separate. It will also keep you in the know about cash flow and credit card balances.
You’ll need to spend some time learning the ins and outs of the industry, however. For example, you might need to know how to properly file your business as an entity.
Becoming a general contractor
If you’re interested in starting a business, you might want to think about becoming a general contractor. A general contractor is a construction professional who oversees all phases of a construction project. They are typically hired by a property owner.
In addition to working with a customer, a general contractor will also manage crews of subcontractors. When hiring a general contractor, you should ensure that he or she has the necessary knowledge and experience.
As a general contractor, you will need to have the requisite skills and equipment to start a successful business. This includes having an insurance policy, a building permit, a license, and proper transportation.
You will also need to make sure that you have an adequate amount of capital to acquire professional equipment. Getting started as a general contractor will require spending between $15,000 and $20,000.
Once you’ve set up your business, you’ll need to market it to potential customers. One way to do this is to set up a website. These websites help potential clients find you and learn more about your services.