How To Make Money In Real Estate Fast And Secured

Real estate investments are capital-intensive and long-term in nature. However, there are some strategies you can adopt with little financial commitment to make quick money in real estate. Obviously, you found this article because you are interested in knowing how to make money in real estate fast – and of course, secured.

I was motivated to write the article when I read a post written by SirBright Godwin on Facebook about how he makes a good sum of money through Shortlets (vacation rentals).

SirBright Godwin, a digital creator, rented and fully furnished a few 2-bedroom flats in a few highly secured and luxurious estates in Lagos, Nigeria for 1.5 million Naira each. He sets up in-house service maintenance to make life comfortable for his clients.

His clients book each apartment for 50,000 Naira per night (for vacation), which should run into 10 million Naira for an average of 200 active days, leaving 165 days as possible vacant days (remember 200 active days + 165 possible vacant days = 365 days – makes a year). Though the property is usually fully booked because he invests heavily in paid ads.

The expenses involved include:

• 2 million naira setup funds
• Roughly 300,000 Naira spent per month on ads = 3.6 million Naira for the year
• 60,000 naira spent per month on service maintenance = 720,000 Naira per year
• His total cost = 3.6 million naira + 1.5 million naira + 720,000 = 5.82 million naira.
• Total profit for 200 active days = 4.18 million naira
• If he rented 5 units of 2-bedroom flats, his grand profit = 5 X 4.18 million Naira = 20.9 million naira
• The money starts flowing in immediately from the first or second month.

Vacation rental or short-let is just a strategy, and it’s fully adoptable in Nigeria. I discussed other real estate strategies below:

Renovation Flipping

Renovation flipping is another way you can make money in real estate fast.

It entails buying a property and renovating or improving it to sell it at a higher price. The golden rule is to buy the least attractive property in the best neighbourhood. Location is paramount in real estate investing.

Identifying the best location for your real estate investing or renovation flipping goals is difficult, especially if you are a beginner. That’s why you should seek the service of a real estate consultant to show you the best alternatives you should choose from.

You might also need a builder to estimate the cost of renovating the property so you can know the total finishing cost and see if you will earn a profit.

Contract Flipping

This is more or less like a realtor-ship. You play the role of an intermediary linking a distressed seller to a motivated buyer.

Real estate investors who find it difficult to sell their properties, those whose properties have been vacant for too long, or those struggling to pay off their monthly mortgage commitments fall under the category of distressed sellers.

Lease Options

This is a property lease agreement that gives the tenant an option to buy before the end of the lease. The tenant pays the landlord an option fee to earn the right to buy the property before the expiration of the lease.

It’s a great way to take advantage of a rising housing market to profit from it. You can ignore the lease option if the market is in a downturn.

One advantage of the lease option is – you can sell your right (the Option) if you choose to for reasons best known to you.

Short Sales

Short sales are properties whose owners are not meeting up to their mortgage commitment, but the property is yet to enter foreclosure. The mortgage institution then auctions (short sells) the property with the approval of the previous property owner.

Buying and flipping a property acquired through a short sale is a fast way of making a profit in real estate.

Mortgage Notes

People buy mortgage notes to finance a property and receive monthly payments for the financed property for 10 – 30 years. It’s a passive way of earning a constant stream of income similar to rentals, except that the mortgage note holder is not liable for maintaining the property.

Properties are financed through mortgage notes at a discount. For example, a 500 million naira worth of property can be valued at 350 million Naira in mortgage notes.

Real Estate Investment Trusts REITs

Real Estate Investment Trusts are some of the most liquid ways of earning money in real estate because they are traded on the open market. They have the benefits of investing in real estate and the stock market combined. Its high liquidity makes it one of the fastest ways to make money in real estate. You can learn more about it in my article titled, “How To Make Money In Real Estate In Nigeria Versus The West”.

Real Estate ETFs and Mutual Funds

Another good way to make money fast in real estate is to buy Exchange Traded Funds (ETFs) and mutual funds that invest in real estate stocks. Some ETFs are investments in property developers, while others are investments in other publicly traded real estate firms, making them highly liquid, just like REITs.

Real Estate 1031 Exchange

1031 Exchange is a real estate investment code that allows an investor to defer payment of capital gain (property) tax because they intend to reinvest the profit into real estate. It allows investors to roundtrip capital gains until they finally unload the property.

How To Make Money In Real Estate Without A License

Making money through most real estate investing strategies in Nigeria does not require a license. You can dive in right away and start cashing out immediately, depending on your chosen path.

How To Make Money In Real Estate Rentals

The most traditional way of making money in real estate is rentals. This type of money-spilling strategy is as old as man. Real estate investors buy properties and rent them to their tenants under certain terms of an agreement.

My Final Words

Knowing how to make money in real estate fast is the smartest and safest way to maximize your investments.

Some of the aforementioned strategies are more applicable to some countries than others. So, it’s important for you to consult a seasoned real estate practitioner or realtor before you choose a path to follow. Ensure you stick to your chosen path and grow it before you diversify your portfolio.

Finally, know that a crucial way to grow any business fast (real estate inclusive) is by investing in ads (advertisement). Nobody knows what you do until you advertise.