The great thing about properties is that you always have something to return to. As soon as you invest money in an apartment or a house, you can always sell it at a later date and get the majority of your money back, even if the market is against you.
Despite properties looking a bit dull, especially compared to stocks whose price constantly goes up and down, they give you a lot of room for tinkering. There are dozens of ways to profit from a house, some of which are rather interesting. In this article, I will focus on the five fastest methods to do so.
1. Reverse mortgage
Reverse mortgages are a somewhat new concept. As the name indicates, they are a type of mortgage where, instead of a homeowner, a financial institution is obligated to pay installments. In return, they get complete control over the property once a homeowner dies or moves from it.
A reverse mortgage is an excellent way for older people to get some extra. You get money as soon as you sign the contract; you can expect the first installment the following month, making it one of the fastest methods of making a profit out of an apartment or a house. What’s even better, you don’t have to worry about marketing and renovations. Even if a house is not in a good state, some reverse mortgage companies are willing to make an offer.
Unfortunately, figuring out how much money you’re going to get can be tricky. This is why we recommend that you use a reverse mortgage calculator to figure things out.
2. Airbnb renting
If you want to make money fast, there isn’t a better way to do it than with Airbnb. As soon as you make a profile and leave pictures and basic information, people will start contacting you worldwide. You might get your first visitors the next day if you’re lucky enough!
Although Airbnb can make you some fast cash, that doesn’t mean it’s your optimal approach. Renting an apartment to tourists can be pretty excruciating. Hordes of people will go through your home, which is why these apartments require more frequent restorations compared to other properties.
As if that wasn’t enough, you have to constantly clean the place. If you don’t do so, you will likely get negative reviews from the next visitors resulting in lower scores and reducing your future profits. Still, if you don’t mind doing chores, you can make much more money with this approach than some others.
3. Renting a vacation home
Vacation homes have several similarities to Airbnb. They require a lot of micromanagement and cleaning. Furthermore, given that these properties are often visited by young people who are looking to party, the place will constantly be a mess.
Even with all the drawbacks, you can earn lots of money from these houses and apartments. Vacation rentals tend to be more profitable than Airbnb. In the end, rental prices tend to go sky high during the summer or winter season. If you can manage a few of these homes simultaneously, you can rack up so much money that you won’t have to work for the rest of the year.
Although rentals provide quick profits during the season, you will have to wait until the season starts.
4. Flipping a property
Property flipping or renovation flipping is an excellent way to make lots of money in a relatively short amount of time. The concept of property flipping has especially become popular in the last few years with all these shows that cover the topic.
Despite all its advantages and allure of high profits, there are quite a few things you must keep in mind when choosing this method. First off, not every house is suitable for flipping, and you need to find rundown homes in good neighborhoods. Furthermore, it would be good to sell the house below market price.
To make some extra money, performing the construction work yourself is much better. That way, you can start renovation immediately, and depending on how much time you can invest, you can make money at a faster or slower pace.
5. Long-term renting
Long-term renting is perhaps the simplest way of making money from properties. You only need to take a few lovely photos and post the ad on the biggest real estate websites. You can expect the first offers to stream in in just a few days.
To get the most out of it, you should find a reliable real estate broker who can get you the highest price possible.
