4 Business Routes Into Real Estate

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Investing in property can be a business venture on its own. By owning a few properties you can make a healthy profit – if you know what you’re doing. Here are four of the best ways to make money out of property.

Become a landlord

The preferred method by most, becoming a landlord allows you to cover mortgage costs by renting the property out. This could include one whole building or individual rooms. Paying an agency can sometimes help to ensure property gets filled and that rent is paid on time, although it’s worth weighing up the cost. Rented properties must fit certain specs, so you may have to do a little work to your property first if you were to pursue this avenue. It may be best to keep some money left over to in the event that you may need to make repairs (obviously if this inflicted by the tenants, you can deduct these costs from your tenants’ deposits)

Give properties makeovers

Restoring and renovating property can be another great way of making a profit. If you’re a dab hand at DIY you may be able to do this yourself, but quite often it may pay to hire professionals. There are many companies that can renovate your entire property for you (such as this company owned by Nicolas Livsit). Alternatively, you may be able to save money doing certain jobs yourself and then picking specific handymen for specific tasks such as electricians as plumbers. Getting involved in this kind of property investment requires having some money already behind you and you should always make sure not to get too attached to the properties you renovate – otherwise you may not want to sell them.

Study appreciation rates

Riskier than renting or renovating, you could simply rely on natural appreciation to make a profit. You will have to find a way of paying the mortgage in the meantime, but if you study property price rates enough you may be able to find an up-and-coming location in which prices are sharply on the rise, making it only a couple years before you can make your return. Many property investors will try other methods before moving to this, making money and gaining a knowledge of how the property market works before committing to such a risk. The worst thing you want is to invest in a property, only for it to not increase in value at all and be stuck with it (or worse invest in property that loses it’s value).

Learn to flip

Flipping property is the riskiest venture of all and involves trading a property directly for another with no money involved. Both parties generally have to feel like they’re getting something out of it. If you’re sly enough you may able to exchange your property for one that’s worth more in value, or one that you can easily add value to by making a few adjustments. Get it wrong and you could risk ending up with the worst part of the deal. Property experts should only attempt this.

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