Making an investment in real estate is an endeavor that should never be taken lightly. Apart from the time spent cleaning out old buildings, marketing properties, and hosting guided tours for potential buyers, you’ll also have to come up with the initial capital to make the investment in the first place. This can be especially troublesome for first-time investors and those who are new to the world of real estate in general, but there are a number of things you can do to start generating funds immediately.
4 Creative Ways to Make Side Money for Your First Deal
1. Take up small maintenance and repair jobs.
Side jobs in maintenance and repair can benefit your real estate investment strategy in a number of ways. Not only will you pocket some cash that can be put toward your first property, but these tasks can also give you the skills needed to make repairs and renovations to any real estate you do purchase.
Properties that are in a state of disrepair can typically be purchased for much less than their market value. Since you are now familiar with the fundamentals of building maintenance and repair, you can perform the fixes yourself and maximize the final return on investment.
2. Sell your unwanted goods.
If you’re like the majority of homeowners, you probably have some old, unwanted, or extraneous goods sitting around the house. Outdated cell phones, archaic video game systems, and even gently used clothing, valuable artwork or jewelry all make great candidates. While you may view it as junk, others might be willing to trade their hard-earned cash for you discarded items.
There are a number of ways to go about selling your unused junk. Online auction sites have been around for years, giving both you and the buyer protection against fraud. Specific communities within today’s social networking sites can also be used to sell your items, but there’s far less protection afforded to the parties involved. You can even go back to the traditional yard sale as a means of clearing the clutter from your house and making a little money in the process.
3. Invest in other markets.
Real estate is an expensive market to penetrate, especially when you’re new to the industry. If you’re finding it difficult to secure the necessary capital for an initial investment, you might want to consider diverting your funds into another market. Not only does this give you the chance to test out your investment prowess on a smaller scale, but any profits you make can be used for future real estate purchases.
Other alternatives to real estate include the stock market, digital currency, and even the oil and gas industry. In fact, there are a number of different methods you can utilize when investing in natural resources such as oil and gas, including mutual funds, leases, partnerships, mineral rights, royalty interests, and more.
4. Host a fundraiser.
Fundraisers can be incredibly helpful when first entering the real estate industry. Not only does this give you a chance to meet some of the local community members and business leaders, but it provides you with a great way of building your brand, establishing your reputation, and raising awareness of your new company.
The act of hosting a fundraiser is not cheap, however. You will need to establish a budget to ensure to you cover your expenses, which might include drinks and beverages, prizes, entertainment and the event venue itself. If possible, try to partner with a fellow investor or community resource to ease some of the financial burden on your behalf.
Making the Real Estate Market Work for You
To be a successful real estate investor, you’ll need to learn how to make the real estate market work for you. The majority of this knowledge will come to you from firsthand experience in the field, so you’ll have no choice but to get your feet wet right from the start. Once you’ve obtained the necessary funding for your first investment, you will typically find that the rest begins to fall into place just as it should.
What side hustles have you taken on to make extra funds for your first deal?
Let me know with a comment!
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.