Real Estate is a place to make money if one can invest a bit and one is well informed about the market. Nevertheless, like all businesses you also need to have a business plan or a strategy to win over and become a successful investor. Irrespective of whatever strategy one may deploy there are several ways to make money in real estate which we elaborate as under.
Renovate and Sell or Rent it:
This is one of the successful tips of the real estate industry to buy properties in lesser prices which requires substantial repairs. Properties which are in need of major repairs are sold at much lesser price than the market rate. Such properties can be bought and sold when the market takes an upward turn. There is profit if one rents such properties also as the return on investment will be high owing to less investment.
Real Estate Agency: Opening a real estate agency is a much better option instead of putting one’s money at risk. The real estate agents do not rent, sell or buy property but instead earn huge commissions on sale just by helping people to buy and sell property.
Wholesale Buying: This is one of the secret ways of making money in real estate sector. By identifying an attractive deal one has to enter into an agreement and then advertise and sell it at a higher price than what the agreement is for. This can be a treated as a sort of unethical practice, especially if the buyer comes to know the truth.
Leasing Property: Leasing a property is a wise way of keeping the option to buy it open below the market price at the right moment. That is the reason leasing option is practiced by many especially by people who doesn’t qualify for a mortgage.
Flipping Houses: This is a good way of making money if one has a sound knowledge of the prevailing rates of homes, repair cost and up-gradation cost. The strategy is to find houses and sell it to different investors. One has to keep the market cycles in mind and have to be good in negotiation skills.
Buying Land: Some real estate investors just buys land and sell it after few years when the market conditions are a bit bullish. One can expect a windfall profit if one buys few acres of land and sells it in sizeable plots.
Buying under Construction Properties: One can buy an under construction property especially at the early stages by paying a deposit which can range from 5 percent to 30 percent. If one waits for the period of construction, he or she can sell the ready to move in apartment at a higher price.
Consultation: Last but not the least is consultation in real estate after few years of experience in the sector. There have been instances of many people who have become rich by consulting in the real estate sector.
*courtsey;Bangalore Property Review