Do you ever feel like your salary just isn’t enough? What would you do with a little bit of extra cash in your pocket every month? Before you get too busy dreaming about the possibilities, let’s talk about how you can implement different strategies for creating significant cash flow outside of your job. Here we are going to focus particularly on the use of real estate investment options to achieve this objective. Since we are focusing on creating major cash flow outside of your day jobs, you will want to work with a team, or at least hire a company to manage your property investments.
What are some real estate investment options to create additional income streams?
The real estate investment options that we will focus on in particular are those that are considered to be income generating. Specifically, those that generate income on a frequent and regular basis so that you are earning real cash flow each month. With that said, we will leave out options like long-term property flips and assets that focus on capital appreciation versus income generation. Here are some strategies you can use to create additional cash flow beyond your day job.
Wholesale properties. As we’ve discussed before, wholesaling properties requires very little in terms of property repairs and maintenance. Even if there are any crucial repairs, you can outsource the work to an independent contractor. The time-consuming part will be finding the properties, but as we mentioned you can set up a team to assist you in your operations. Ideally, you will want to allocate enough time between you and your team so that you are conducting multiple deals every month. You can learn more about wholesaling properties here.
Rental properties. These types of investments generally provide income on a steady and consistent basis. This typically occurs monthly, which is an additional sum of cash in your pocket each month. However, you must subtract the mortgage payment from your rental proceeds and any other expenses to determine your true net monthly profit from the unit. So long as you keep your properties rented out consistently, you can depend on this monthly cash flow. You can learn more about rental properties here.
Real Estate Investment Trusts (REITs). Since these types of assets pay out at least 90% of their profits in dividends, they are considered an income producing investment. This is an even easier option than owning the actual properties since you do not have to deal with any of the holding properties. Simply buy some shares and reap the benefits as the trust fund does the real estate-related work for you. This way, you are still invested in the real estate industry with a fraction of the work. You can learn more about REITs here.
Crowd funded real estate options. The rise of the Internet has certainly revolutionized many practices and the real estate industry is no exception. It is now easier than ever to pool your funds with other investors and purchase a property. Typically, these are done in increments of $10,000 USD.
Rent out a portion of your own property. Lastly, there’s always the option of renting out your own property, whether it’s a bedroom or the entire basement. You can never rule out this option, especially with new companies like Airbnb to make it easier than ever before. However, we understand if this is not for you.
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