The real estate business is a lucrative way to make some serious capital, if you know the ways in which to monopolise in said market. There are many different ways to make money within this sector; it is not only the real estate agents or people that own properties that are making a great return. Below are 12 proven ways to make money within the Real Estate Business.
Home-renovations
There is a huge increase in the home-renovation market. A lot of people are now buying homes that require a lot of works at a lower rate, investing in them and then selling the property for more money. This is great for those investors that have a good understanding of DIY or work within the construction field. The key is to choose good neighbourhoods, or those that are in up and coming areas, regardless of the state of the property as they will always sell in the end.
Leasing Properties
This is a good option for investors with less upfront capital or a low credit score. It is important to lease or rent properties with the option to buy, this means that in the future you can purchase the property for a lower price than it is worth, or sell the rights for the purchase to someone else for a big price.
Flip Contracts
This in essence is the act of being a fixer for a party looking to buy a home, and one trying to sell one. If you are able to bring these two separate parties together through looking up vacant homes, or those that are behind on their mortgage payments then you can flip contracts easily and earn a finders fees.
Real Estate Investment Trusts
These can be part of your investment portfolio and focus on either residential, commercial or a combination of both types of properties. This will require the assistance of a lawyer, a trustee and a financial planner to ensure your investments are kept up to date and worthy.
Staging Services
This is a great add on to the real estate market, staging the home includes dressing the home to match the desired aesthetics of the customer or company. You would usually work closely with a realtor and help them on an ad-hoc basis to ensure their open houses are successful.
Cleaning Services
Cleaning services are an integral part of the real estate business; you cannot open any home without it being clean and ready for people to view. This can be used when new homes come on the market, or if homes need to be cleaned in between tenants.
Short Sales
A short sale is when the owner of a home is behind on their mortgage, but the property is not in foreclosure yet and they are looking to sell. Whilst these can take time, they are a great way to make money with little capital.
Offer Home Warranties
This could be a good option for a retired contractor. As properties are usually valued based on their inspections, a retired contractor would have experience in this field and would be able to offer warranties based on the inspection record of a home.
Start a Property Management Company
This is a good idea for an investor that has previous property experience. It would include activities such as carrying out tenet screenings, maintenance checks on properties or the general upkeep of the outdoor maintenance around the properties.
Holiday Homes
This is a great way to earn a big return on your property investment is to make it into a holiday rental. You do not need to own the properties, making the market even more lucrative and open for a diverse customer base. It is important to research and find holiday homes in vacation hotspots.
Property Venture Capitalist
If you have a lot of capital and are looking to invest it into the property market but do not have the know-how to do so, you could become a property venture capitalist. It is easy to find investors but your should conduct some due diligence into the best ones for you to work with.
Commercial Real Estate
Investing in commercial real estate is a great opportunity to earn a large sum of money. This can include buying land, properties to develop and renovations or upgrades, anything to add value to a location or property in order to sell.
Conclusion
These 12 proven ways to make money within the real estate market are a great starting point for people to earn. These opportunities could grow into big businesses with high revenue potential. Earning money in real estate doesn’t always mean you have to own or rent properties; there are many other niches that you could diversify in. Remember your strengths and choose a niche that would best suit you.