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Looking for a great kind of investment? Real estate is the answer. According to the College Investor, 90% of millionaires even claim that their wealth is a result of real estate investment.
Since then, the industry has been successful in attracting investors. There are a lot of reasons why, but it’s mainly because real estate is a tangible asset that can be controlled. Plus, investing in properties offers diversification that allows you to distribute your funds into different markets and reduce the overall risk.
Interested in venturing into the world of real estate today? You can learn the secrets to being successful in this trade by listening to the stories and tips from industry leaders at the Real Estate Masters Summit.
The Business of Real Estate Explained
The real estate business revolves around the idea of buying, selling, managing, operating, and investing in properties. By basic definition, the term “real estate” refers to land and property, as well as the permanent improvements connected to it (whether natural or man-made changes), such as trees, water, buildings, fences, and more.
Real estate has different categories:
- Residential – homes, condominiums, townhouses, or duplexes
- Commercial – hotels, offices, shopping centers, or any kind of property used for business purposes
- Industrial – factories, warehouses, power plants, or any kind of property used for production, storage, distribution, etc.
- Land – agricultural, vacant, or undeveloped parcels of land
- Special Purpose – parks, churches, libraries, or any kind of property used by the public
Dig deeper into the world of real estate by attending the REMS real estate summit. Here, you can listen to the most respected real estate leaders about their experience. You can even ask them in-depth questions. Reserve a spot now!
Making Money with Real Estate
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With these various kinds of real estate, we can see that the possibilities of earning in this industry are endless. Yes, the real estate business is highly profitable. But this is possible only if you know how to handle your assets the smart way.
Every real estate business model can give you maximum earnings. But the most common way to be profitable in real estate is through appreciation. In general terms, appreciation means an increase in the asset’s value over time. It may depend on the demand and supply, property market drivers, location, and other factors. Once an asset has already increased its value, you can either sell it on the market or rent it out to generate passive income.
Don’t know where to start? Check out some of these real estate business ideas you can try out.
Be a Landlord
One huge advantage you can get from being a landlord is the reasonably good cash flow. Moreover, you’ll have a strong investment asset. This also allows you to build a legacy portfolio of properties that you can pass down to the next generation with minimal tax liability.
While most landlords work full time, you can also do it as a side hustle. You can manage your rentals from the comforts of your home or an office setup. Build your business by slowly shifting from leasing single-family homes to renting out duplexes or larger buildings. This strategy will help you double your profit while minimizing property tax and management costs.
Be a Property Manager
A familiar misconception in real estate is that you have to own a property to make money from it. The truth is that you can still start a real estate business even without owning a property by managing properties. The responsibilities you will have as a property manager include handling maintenance, collecting rent on behalf of the property owner, and finding new tenants for the property.
Starting a property management company is a full-time job. Though you have the option to run the business at home, it’s still recommended to have a business location. Note that your facility should have storage for cleaning supplies, drywall, paint, and other maintenance materials you might need for the properties you manage. Also, you have to be available to address emergency situations.
Flip Properties
House flipping is the process of buying properties below the market price, increasing their value through repairs and remodeling work, and then reselling them in the market for a profit. Unlike rentals, though, this strategy doesn’t offer continuous cash flow. However, it comes with large, one-time profits.
Some investors flip only one or two properties in a year as they do the job part-time. Meanwhile, other investors make it a full-time living and focus entirely on flipping. Either way, such a business can be managed from an office or your home.
If you choose this path, you need to reduce the amount of time you hold the property to make your flip profitable. Remember that the longer you own the property, the more utility costs, mortgage payments, insurance, taxes, and other fees you will have to pay. Keep it simple with the renovations and keep in mind that you are redesigning the home for local buyers at a specific price point.
Engage in Bird-Dogging
The term “bird dog” came from hunters who look for and retrieve fallen birds with the help of dogs. In the real estate world, bird-dogging means you help real estate investors spot opportunities for high profit. Then, you get the monetary compensation in exchange for the good deal you’ve spotted.
This kind of strategy is not as easy as it sounds. First off, you need to have extensive knowledge of the market. You also need to have a large number of reliable contacts. The bottom line is that you look out for hidden properties that no one else has discovered yet.
Just like the other tactics mentioned, bird-dogging can be done on a part-time or full-time basis.
Offer Real Estate Photography
Not every real estate business plan only involves buying or selling properties. Another avenue to make money in this industry is marketing properties through photography.
Real estate photographers use their skills to showcase the appeal of properties on behalf of the sellers or landlords. The pictures are then posted online as part of a digital marketing campaign.
This can be a full-time or part-time job opportunity, as well. Your working hours will depend on the number and sizes of the properties you will shoot within the day. The bigger the house, the more photos needed to shoot, which demands more time.
To get ahead of the competition, you will need to invest in high-quality equipment and editing software. You may also want to get a drone to be able to capture panoramic views and features of a property.
Get to know more about the diverse ways to earn in the real estate market by attending the Real Estate Masters Summit. You’re sure to get wisdom from the industry leaders who will speak at this online convention.
Key Takeaway
There are multiple opportunities to earn in real estate, but that doesn’t mean that you become complacent with your investment. No matter what kind of real estate business you venture into, you have to give it your 100%. And, the hard work includes acquiring deeper knowledge about the industry.
The Real Estate Masters Summit is your ticket to widening your horizon. All the speakers have already enjoyed success in their respective niches. Rest assured that you’ll get to learn everything necessary to grow your real estate business!
