In the first part of this series, we discussed various ways to make money off real estate. But most of those strategies can only be pulled off if you already have a sizeable capital.
Still, that doesn’t mean that you should stay away from the real estate market if you don’t have a huge capital to begin with.
Here are the following ways where you can earn big in real estate for a capital that fits your budget.
Real estate business operations
This type of investment works if you already own a piece of property.
For instance, if you own an office building, you can charge for parking and make money off vending machines. If you own a condotel, you can sell on-demand movies to your guests. All these are on top of the lease that you collect every month from your tenants.
Though this is not exactly a property investment in the strictest sense, it’s still a viable way to earn extra passive income from your piece of real estate.
In crowdfunding, a group of investors pool their money on a property and share the profits. You’ll find a lot of crowdfunding platforms online that already weed out bad deals so that you can be sure that you won’t get scammed.
You can invest in crowdfunded properties for as little as P50,000 or as much as P500,000.
And if you know of fellow real estate investors, maybe you can consider partnering with them.
For example, you find a potentially profitable property, but you don’t have enough money to pay for it. You can ask your partner to shoulder the bulk of the down payment while you deal with all the paperwork and then split the equity and rents based on your contributions.
Real estate investment trusts and ETFs
Also known as a REITs, real estate investment trusts are stock corporations that invest in a broad range of income-producing real estate. These companies own many types of commercial properties like offices, apartment buildings, hospitals, shopping centers, hotel, and warehouses.
Another option is to invest in real estate exchange-traded funds or ETFs, which are a collection of property stocks and bonds in a single fund. You can instantly diversify your portfolio with this investment while incurring low overall costs.
Investing in these vehicles usually require opening a brokerage account. As an investor, these are great ways to get some exposure to real estate and add it to your portfolio.
Rent out a portion of your home
Want to test the waters first? You can try renting out a portion of your house to guests.
If you have a spare unused bedroom in your house, you can rent it out to boarders, like students who want to live closer to their schools. If you have a duplex, live in one apartment and rent out the other.
This way, you get to watch your tenants closely, making it less likely for them to stiff you for the rent payment. It also gives you a feel of what it’s like to be a landlord without making a huge investment.
Based on this list alone, you have plenty of ways to make real estate in the Philippines work for you. The important things to figure out are your budget and preferences first, and the rest will follow.
While you’re at it, don’t forget to explore avidaland.com for more options on property investment!