Most people tend to ask how they can make money in real estate even when they have a very little amount of capital to start with.
It is possible to make a sustainable amount of return from real estate only if you know the right strategies to employ and be willing to work hard to make things happen.
In real estate, you can be having a lot of capital, but you will not make even a single coin because your strategy in the industry is poor.
Before we dive into understanding better on best strategies. Below are the advantages of real estate investing:
- a) During inflation, as prices of basic good rises, properties prices rise as well, thus real estate acts as hedging against inflation.
- b) Real estate has peer influence in that, when there is development in neighbourhood, your property value increases as well.
- c) As more people develop an interest in real estate, its demand for properties goes up and your property will increase.
Strategies to make money in real estate:
Renting out part of your house.
Starting real estate doesn’t always need to be capital intensive, you can start with your current primary resident. Prepare and rent out a vacant room or even a servant’s quarter that is not in use. Collect rent for the period you wish and build your capital so that you can use it later for your next project.
This is perhaps the easiest way to get into the real estate business.
There are many platforms like Airbnb that allow you to list your room for hosting purposes. After you have created your room, you are only required to do marketing. You can start by sharing on your social media account which is often cheap and easy to get a customer.
Because you are inviting strangers to your primary residence, you need to have a proper screening process so that the right person comes to your play.
Long term renting program
Renting real estate property is one of the ways to streamline your cash flow in your properties. If you have bought property like land or house and then plan to hold till future dates in order to sell, renting out is the most important thing in generating short terms income.
When you are buying a property so that you can entirely use to generate income through renting, then location becomes your most consideration as properties near developed area is often on high demand.
Online real estate Agency program
If you are completely new in real estate, you neither do have the capital nor a house to rent out, the best approach will be to do look for a real estate company that has an agency model that allows you to look for potential buyers and then you are paid a commission for the lead.
Investment in commercial real estate
If you have a substantial amount of capital and you are planning to go advance in real estate commercial real estate is where to be.
Commercial properties are like retail shops, shopping centers, malls, and many more. The capital required for this investment is large and banks usually charge higher interest as compared to loan issues for residential properties.
You can make money through leases of the property, which you can collect on a monthly basis or yearly depending on your agreement.
In conclusion, in real estate, there are many strategies that can be employed in real estate that can bring you money. Knowing which strategy will work best for you is key to your success