The real estate industry is very fierce and competitive. If you’ve ever tried to buy or sell your home, then you’ve probably already experienced how tense things can get in this field. But, things are this way for a reason; there’s lots of money to be made in this industry.
Consequently, there are lots of real estate businesses being created by the day, and a lot of them go on to have sustained success. If you’re reading this, then there’s every chance you have an interest in both real estate and starting a business. So, here are some brilliant real estate business ideas to whet your appetite:
Buy & Rent Properties
Buying and renting properties is the easiest way to start a business out of real estate. You begin by purchasing a property or two, and then you rent it out for people to live in. Essentially, you’re becoming a landlord and getting money every month in the form of rent. As you gradually expand your business by investing in more properties and taking on more tenants, you’ll probably need to hire some assistance. Most landlords end up hiring people to manage their properties – particularly if they own some overseas. This is because you will have to stay in contact with tenants to ensure they pay rent on time, and you also need to inspect your properties to make sure they haven’t damaged them. Plus, they may have issues with the property that weren’t their fault, which you need to deal with. So, having people onboard to manage your properties means they can do all this for you. Regardless, this is one of the most popular and prosperous real estate business ideas.
Buy & Rent Land
Speaking of becoming a landlord and renting things out for money, you can literally become a landlord by investing in some land. There are endless opportunities here as land comes in all shapes and sizes, across many different locations. You can see there are companies like SATP that sell vast acres of land for people to buy and use as they please, but you can also buy much smaller areas of land as well – if your budget restricts you. The aim with this business idea is very much the same as renting out a physical property in that you own the real estate and other people pay to use it. The difference is that you don’t rent the land out for people to live on, you rent it out for other means instead. For example, you can offer fields for rent that a local farmer may be interested in so they can grow crops. Another idea is to rent out your land to big electrical companies that need somewhere to build antennas or pylons. It’s a similar concept; you’re the owner, and they pay you, but it’s very different in that you have less to worry about. There aren’t going to be any tenant issues; it’s a less hands-on idea.
Property Flipping
Property flipping is a business idea that’s perfect for anyone with a keen eye for a bargain, and a love of property development. With this business, you will focus solely on buying properties for as little as possible, with the aim to develop them into something far more valuable. As a result, you can sell them for a significant profit, making lots of money. It’s an idea that takes plenty of planning, along with a key understanding of the real estate market. Essentially, you’ll be looking for the perfect ‘fixer-upper’ property. This is usually a house that has a lot of potential, but is currently a little run down and needs a bit of work put on it. As such, this makes it unattractive to most buyers that just want to buy a nice home and move into it. So, the market value is usually pretty low, and you can snag it for a bargain. This then gives you the chance to make improvements – without spending too much money – before putting the same home up for sale, at a now vastly improved price. It’s a business that you could try and do by yourself, but you’ll need the help of many third-party suppliers – like contractors, plumbers, etc. Or, you could try and grow the idea into a big company where you have all the people you need under one roof. The possibilities are exciting, which is why this is a very popular idea.
Property Management
I mentioned earlier how landlords like to employ property managers to help them out, and this has resulted in one of the easiest real estate businesses to start; a property management firm. Here, your job is simple; you take charge of different properties and oversee everything. You’re the point of contact for tenants and owners, basically acting as a middle-man to communicate between all parties. The great thing is, you can manage so many different types of property; from residential to commercial. Furthermore, you offer a service that’s in demand, so you should have clients lining up at your door.
Real Estate Sales Agency
We’ll end with an idea that’s as old as the real estate market itself. By starting a real estate sales agency, you’re setting up a business that allows people to buy/sell property with ease. People come to you when they want to sell your home, and you’ll list their house up for sale, drawing in potential buyers. Then, when the interested parties are lining up, you organize open houses to show off the property and convince them to pay close to the asking price and seal the deal. When the sale is finalized, you take an agency fee, and that’s how you make money. It’s another popular business thanks to the service provided as many people rely on real estate agents to help them sell their property as quickly as possible.
These are just five of the many ideas out there for starting a real estate business. No matter which one you choose, always be prepared for what lies ahead. It’s a dog eat dog world in real estate, so brace yourself for a lot of competition and some long working hours.