by Heritage Vancouver

Small business: Real estate investment

Real estate is always a good business to get into if you want to make passive income in the year following. The real estate market is one of the most lucrative industry at all times. Real estate ownership can creates a long term profit for you. If you look at Donald Trump, he’s very wealthy and he works for himself. Once you accumulate a couple of estates you won’t have to work hard and you can live off of rent income. Rent incomes are great in the long run when the market goes up.

You don’t have to be a licensed real estate agent to get involved in this business at all. A real estate agent doesn’t make as much as an investor or an owner. The market can be too competitive and the sales is low. You basically have to have another job in order to survive. Selling commissions are good but there are too many real estate agents out there and you’re not the only one. The economy is so poor currently that people are not selling or buying because they don’t have the money. People are losing their job and they can’t buy or home prices have dropped and people don’t want to sell. The economy is not so great right now but when it gets better in a couple of years than you may want to start doing some investing.

There are two ways to invest in this business. One is to buy low and sell high and the second one is to buy and make it a rental property. Either procedure is very simple to do once you have the funds and nothing is too hard if you have plenty of funds. You will either have to save for this fund or make use of property that you already have. I know people who have so much property sitting around and they don’t use it wisely. They let it sit there without earning some kind of income for them. They still go to their 9-5 job. This is not resourceful right. What’s the point of a vacation house that’s just sitting there if you still have to go to your 9-5 job.

If you’re not ready to buy low and sell high than you can approach the other method by using the property that you already have. If you have a big mansion and you’re living by yourself then you can rent some of the rooms out to your friends or college students or some of your relatives. You can rent it out for $ 400 a room and if you have 3 rooms then you can make $ 1200 a month. This is still good income to have without doing anything. I don’t think a lot of Americans do this but most Asian people rent every thing that they can even their garage. I don’t know how to put it but as long as you get a couple of thousand a month without working is still good income.

You can renovate the garage space and make that into a studio and rent it out for at least $ 700 a month. You can put carpet in and paint the walls, cover the ceilings, put in a refrigerator, put in a bed and all is ready for your renters. I use to know someone that does this kind of business and they don’t have to work. This is a good idea for people that are near retire and can’t work anymore or people that are bound to their children. If you have a whole bunch of extra rooms then you can do this. You can also consolidate some of your office room that you don’t need. You can also build extra room inside your house or outside of your house. If you let a nice college student rent, it won’t be much of a problem and they’re probably gone most of the time. You should be careful not to let people that conflict with your life rent.

For example, you may not want to let a young girl rent when you’re married because this girl can come between your marriage. I have heard lots of story like this before. You should not let a man rent if you’re a single woman because it’s not safe. If you know the person very well then it’s OK. If you have young girls in the house the man can be a problem. You have to check to make sure that they are credible before you rent it to them.

If you have a backyard that is very wide and you don’t use it then you can build a couple of studio back there and rent it out to the people. You just have to get permission from the city hall. This can also make you another couple of thousands. I think most people work hard and if you can invest in something so simple like this then you should so you can build some security.

If you have a house or vacation house that you don’t use then you can use that to make some extra income for you. You should put it in the newspaper and rent it out. Just remember to scan the renter and keep all of your contract safe so that they don’t fraud you.

If you’re living in an expensive state like CA and can’t buy houses for investment then you can buy it in a less expensive one like Nevada where you can still make rentals and get a decent income. You can try any other state from the East Coast that is cheaper and buy some houses for rent or businesses for rent. If one day you can afford to buy in an expensive state then your return will be higher because there’s more demand for renting there.

The things to remember when doing real estate business is to collect all of your renter’s information and keep it in a safe place for later use. You also should do some credit check or reference check at your discretion. You can’t t really trust people nowadays. You want to go over the terms and conditions of the contract clearly with the renters and make sure they understand clearly their responsibility. You will also need to discuss with them legal responsibility. You will also need to keep all of their legal document just in case they fraud you or burn your house

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