Last Updated on Feb 4, 2020 by James W
Real estate is one of the oldest money-making industries there is. For centuries, people have been building/buying homes in a bid to make some long-term cash out of them. If you want a slice of this old yet still incredibly lucrative pie, then you need to check out the advice below.
Here are three proven ways you can make money out of real estate:
Become a landlord
If you’re looking for a simple and straightforward way to break into the real estate industry, you should consider becoming a landlord. People are always going to need a place to live, which is why you will always have a customer base to tap into should you go down this money-making route.
If you’re to maximize your profit potential as a landlord, you must:
- Carefully calculate cost vs. revenue on each of the properties that you rent out
- Choose to rent in a location that provides a number of useful amenities (shops, schools, public transport links, etc.)
- Keep the property in excellent condition and update the decor
- Advertize your property at least four weeks before the lease end
- Make use of property management technology
- Take advantage of any tax breaks or incentives you are afforded (green incentives are always good to tap into in this instance)
- Always target tenants that you believe are going to be trustworthy
Rent to tourists and holidaymakers
Renting to tourists and holidaymakers is another great way to find your footing in the real estate industry. Again, there are always going to be people out there in need of a place to stay when they head out on their vacations, which means that you will always have a string of customers to tap into should you go down this renting route.
To ensure that you maximize your profit potential in this instance, it’s essential that you invest in a property in a tourist hotspot. It’s no good placing your property on sites like Airbnb or Booking.com if your location isn’t exciting enough to actually draw tourists!
Fix and flip homes
Don’t fancy the long-term day-to-day hassle of renting out a property? If not, you should consider fixing and flipping homes instead. This will simply see you invest in a property, fix it up, and then sell it on. To make a profit in this instance, you have to be astute with regards to choosing a property that is perfectly located, and you have to be willing to invest a lot of time, effort, and upfront cash into the estate to ensure that it is in the best condition possible when you place it on the market.
To ensure that this venture of yours gets off to the best start possible, you might want to consider taking out fix and flip loans with Neal Business Funding. They will make the process of financing your project as simple as it can possibly be, which will in turn allow you to focus all of your attention on fixing and decorating your property of choice.
Take the above advice and you’ll be making money out of real estate in no time.