Wealth is made by creating tiny investments and seeing them increase over time. Sometimes called turning cash into gold, investing your money in various projects, assets, and skills can help you make more cash.
With that said, read on to learn some of the best ways to turn cash. We’ll also give a brief rundown of the possible drawbacks to money flipping and how to get started safely.
What does flipping money mean?
There’s no typical definition for turning a profit. If you want to turn a profit, you are essentially spending it.
You spend less money on products or projects that have the potential for increasing in value. Once the value increases, you sell part of your share to get a larger return.
One of the best ways to make money is by flipping houses. This is where someone purchases a dilapidated house and renovates it. After reconstruction, they sell the property for more than they paid (and more than the cost of renovations) to make a profit.
It’s important to keep in mind that a money flip could lose value. There is no certainty that your investment will generate a profit.
The good news is that it’s also possible to make a lot of cash by flipping. For example, you might be able to turn $10,000 into $100,000.
Before turning in your paycheck, it’s crucial to do a lot of research.
Is flipping money the same as gambling?
In order to make matters worse, cash is flipped.
The main distinction is that you can influence the result of a money flip as opposed to a gamble.
In gambling, your winnings depend entirely on luck and chance. For example, if you buy a lottery ticket for $10, you are guaranteed to win $10.
You have no control over the outcome of the ticket. You also cannot increase your chances of winning.
Instead, you have to do business like an investment company than gamble. You take on calculated risks in your investments.
Of course, luck can mean the difference between a failure and success. However, there are many variables that can affect or improve the outcome, including your own effort.
Is it legal to flip money?
There are certainly many ways to make money legally. In fact, legally making money can be a fun way to make some extra money.
That being said, there are many shady money-making schemes and scam methods for turning a profit.
The best way to avoid being scammed or defrauded is to do your due diligence when looking for a switch. This means thoroughly researching the process and any third party involved in the switch, such as the seller or delivery company.
Be cautious about offers that offer too good to be true or require you to trust a complete stranger with your life savings.
How to identify money flipping scams
Money-changing scams are incredibly popular on social media websites. You may see an “investment” ad promising to help you significantly increase your income. These scams might even come from a hacker posing as your friend.
Some signs of a break-in scheme include:
Remember that a rule of thumb about investments is that if something seems too fantastic to be real, it probably is.
Being safe while flipping money
Flipping is type of investment. Some investments can make you a lot of money and offer a high return on investment. Other people could lose money.
Either option is open to you if you are looking to turn a quick profit.
9 Real ways to flip money
Ready to start flipping your money and put it to work for you?
Here are nine tips for turning cash.
1. Real estate flipping
As discussed before, flipping homes is one of the most well-known home-renovation techniques. You can make a lot of money by buying a house that needs upgrades and reselling it once it’s done.
However, entering the real estate flipping industry is not easy. It requires a lot of upfront capital to purchase a house.
Even a low-priced fixer-upper could cost several thousand dollars.
Then, you will need to pay for supplies, contractors, and inspections to bring the house back to life. Furthermore, the time needed to renovate your home-especially if you are doing the work yourself-can be significant.
Fortunately, there are other methods to invest in real estate and turn your income into properties. For example, you could invest in a real estate crowdfunding platform.
These are real estate-specific crowdfunding platforms that enable groups of people to pool their money to buy a property.
2. Flip websites or domain names
Just like physical real estate, websites and domain names are virtual real estate. Just as with houses, you can turn these virtual properties into profit centers.
Flipping websites and domain names is an easy way to make cash. However, there are some steps required to ensure your flip is more successful.
Take Mark Levine, who made six figures a year turning domains part time. He purchases domains when he sees that they would be useful and have potential.
Websites require more work to output than domains. You typically need to set up both the website and the subsequent. Once a website is up and running, you can sell it.
Be mindful of your skills, time available, and the cryptocurrency market for flipping domain names and websites. Typically, a domain name flip is easy money, while a website flip requires more effort up front.
3. Resell goods online
You’re in the market to buy a new phone. You discover an electronics store that is going out of business. They’re discounting last year’s iPhones by 50%.
You can just get one for yourself and get a great deal on a new phone.
Another option is to buy several of these items and sell them to other users for a gain.
You buy 5 phones for $500 each. The current MSRP is $1,000. You sell each kidney for $700.
Your clients receive a great deal. You create $200 per call, totaling $1,000.
This is a sample of a resale money flip.
Perhaps the best means of making money is by selling items. However, luck is the most important factor when reselling merchandise.
You have to find products at a discount to make a profit reselling them. If you must buy at or above MSRP, you may not earn enough money reselling the items.
You’ll want to make sure there is an adequate market for your products. iPhones or the newest Samsung Galaxy cell phones might sell well. It will be more difficult to sell a no-name phone with low volume features.
Some people enjoy reselling goods they find to be a fun and lucrative way to make money. Finding great bargains is comparable to searching for a treasure. You never know just how much treasures you may find and resell.
If you prefer a bit more predictability with your online shopping, you can also look into e-commerce drop shipping.
Dropped shipping refers to selling items to customers without ever physically seeing them.
Amazon is one of the most popular dropshipping platforms. You can open an online shop on Amazon and ship merchandise from wholesalers.
Amazon manages the entire process of storing, packaging, and shipping your products to customers. You pay a fee for this service, which comes out of profits.
Drop shipping is very effective. The setup only takes a few minutes, so it is simple to get started.
However, keep in mind that many people are doing the exact same thing. The difficult part of dropshipping is setting your store apart from millions of others. You’ll need to spend time promoting your store.
4. Bank account churning
Did you know many banks offer incentives for you to open a new account?
It’s often in the form of extra money added to your account. Think of it as a gift from the bank for becoming a new business customer.
The art of bank account churning takes advantage of the incentives offered by these financial institutions.
This is one of the only times where something sounds too good to be true, but it’s actually true. Bank account churning is a real and legitimate way to turn a profit.
Banks certainly don’t want you to open and close your accounts frequently. To help cut back on churning, most banks expect you to have your accounts remain open for a certain amount of time.
You will need to keep your account for this period before withdrawing your funds to avoid penalties.
It’s vital that you read the terms of your account thoroughly before trying to churn it. Failing to disclose a key piece of information may result in major fines. You may be banned from opening an account in the future.
Say a national bank offers a $300 bonus for new customers to open a checking account. You must deposit $500 at the opening of the account to receive the bonus funds. Your account must remain active for at least 90 days, or there is a $200 penalty.
You deposit $500 into a new account. The new bank deposits an additional $300 as a bonus.
You keep the $800 in the account for the first 90 days. After 90 days, you withdraw the money and close the account.
Credit card churning works like bank account churning, but with credit card introductory offers. Many credit cards give new customers a statement credit based on their initial purchases.
For example, you open a new credit card that provides a $200 statement credit if you spend $1,000 during the first three months of card membership.
To churn credit cards, you open new cards to collect their welcome bonus offers. Then, you close the card and move on to the next one.
It is far safer to bill on credit cards than it is to open savings accounts. You could severely harm your credit score by overspending and opening new accounts.
There is also a risk that a credit card company will cancel your account. New credit card companies might deny your account because of too many new accounts.
5. Traditional investing
One of the most common means of turning a profit is through the use of traditional trading. This might include investing in stocks, bonds, and mutual funds.
Essentially, conventional investments are like what you trade in the stock market.
Traditional stock investing involves purchasing a small share of a corporation. As the corporation’s value increases, yours does as well. You can then sell your shares to make a profit.
One of the disadvantages of traditional investing is the lengthy building phase. Few individuals get rich quickly by trading stocks. The best way to get the most out of your money is to regularly invest for the long term.
Fortunately, investing is one of the easiest ways to increase money. You don’t have to personally manage your investments.
You can choose a conventional financial adviser or a planner to handle your assets. These financial specialists handle your investments on a daily basis. They will tell you about buying and selling opportunities based on your risk tolerance and investment goals.
You can also invest your money in a Robo advisor platform. Most large investment platforms offer an automated investing tool.
To participate, you merely have to answer a few questions regarding your risk tolerance and wealth-building objectives. The technology will manage your investments based on your responses.
6. Non-traditional and alternative investments
You can also find new ways for making cash with alternative investments. Just like conventional investments, it may take many years before you see satisfying returns on the initial funding.
However, as time passes other investments may have among the highest returns on investment.
Both gold and silver are among the most common alternative investments.
Commodities are raw materials that have value. Common examples include corn, precious metals, oil, and natural gas.
Anything of value that can be kept as a collection can be a collectible. Wine, art, stamps, and baseball cards are just a few examples.
You can buy and sell commodities in physical ownership (where you own the product). Of course, you don’t want to store thousands of bushels of wheat. Many people purchase commodities on futures markets or the stock market through ETFs.
Collectibles often contain more risk than commodities. Their market value might not be the same as their actual worth.
Think about Beanie Babies. They were incredibly popular in the late 90s. Many people saved tags and bears in mint condition in hopes of someday reselling them.
But, nobody wants to buy them. Their worth is very low except for some very rare items.
In contrast, some collectibles have proven to be highly valuable over the years. Fine art, such as paintings, is often considered an appreciating investment.
7. Flip money by fixing physical items
Being proficient with tools could be a good way to rapidly earn money.
Repairing and flipping items is comparable to reselling items. You can sometimes find a cheaper item at a lower price and fix it or flip it to make a profit.
The important difference is that you are purchasing used products instead of new products.
You will have to invest time and effort to make the equipment like new again.
For example, say you’re good at restoring old furniture. You go to local yard sales and flea markets to find old furniture. There, you pick up a used chest of drawers with a broken drawer for $50.
You sand and fix the drawer. Paint and new hardware improve the piece’s appearance dramatically. Someone pays $300 to $250 more than you did.
This labor-intensive process is one of the most challenging operations. You’ll have to do the work (or contract it out) to prepare items for sale.
Many people who make money prefer to buy previously owned items, but they are often not worth the cost and time it takes to restore them.
In contrast, turning old items into cash can be a great way to spend your free time while doing something you enjoy. If you enjoy restoring old cars or refurbishing furniture, this can be a good activity for you.
8. Invest in land
Real estate investing generally centers on rental properties or house flips. However, there is another kind of real estate that doesn’t require additional work to optimize the property-land.
Both vacant lots and land such as farmland can be incredibly lucrative ways to turn cash. Many investors consider land among the most lucrative real estate investments. However, you can’t do anything to create more land.
This data also substantiates it. According to the United States Department of Agriculture, farmland values have steadily climbed every year since 1988 (except for 2009 and 2016).
One of the biggest drawbacks of purchasing real estate is the cost. Similar to purchasing a home to flip, you’ll first have to purchase the investment.
9. Rent out your extra space
Do you have any extra space in your home? You could earn a lot of cash by renting it out.
Renting extra space at your home or apartment is an easy way to earn some extra cash.
If you own your own home, this is the most convenient option. Most landlords do not allow tenants to rent part of their property.
Business owners and renters alike can use the extra space they have. Just as you don’t have to take on a new roommate, you don’t have to do anything special to take advantage of the extra space.
For example, you could rent out a spare room on websites like Airbnb or VRBO.
But it is not necessary to have a second bedroom in order to earn money by renting out your house.
Do you have extra storage space in a closet or garage?
You can rent that storage unit to somebody who does not have enough storage space. You might be surprised how many people prefer to store their items at a private home rather than in a massive commercial storage facility.
Renting your house has disadvantages, but there are also advantages. If you rent out a room to a guest on Airbnb, for example, you will be allowing total strangers to sleep in your personal space.
How to flip money fast!
Flipping money isn’t always meant to be a “get rich quick” scheme. You should be aware that many opportunities include medium to long-term returns.
If you want to make money quickly, you need to find the opportunity that will be right for you. This could require you to wait a while before you get started.
House flipping, such as remodeling a damaged house, can be a quick way to make money. In good condition, a house may only require minor improvements before it goes up for sale.
You buy a house for $200,000 and put in $50,000 of repairs. List it for $400,000 six months later.
You get a month later, and you make $150,000 in profit within a year. Obviously, you need to have the money to buy the premises to make it successful.
Flipping money is possible if you choose something that works for you
The best way to earn money may be different from another individual’s successful flip. Explore different options for making money to find one that works for you.
Consider how much money you can afford to invest, how much time you have to spend on the project, and how long you are willing to wait for results.
Our free investing and money courses are additionally a great way to learn more about putting your cash to work.
