How Do You Make Money In Property: 5 Approches
Every year, thousands of people get the idea that they can make money in property. After all, people online seem to be making a success of it, so why can’t you?
The problem, of course, is knowledge. Those individuals who are at the top of the industry often know things that take years for the average person to work out, by which point, they’ve often lost a lot of money.
The good news is that there are tried-and-tested strategies to making money in the property business that almost never fail. These approaches give you the highest chance of turning a profit and making money on your initial investment.
REITs
One of the most popular and simplest approaches is to buy a REIT. These help you tap into existing real estate investments and make a standard return over time.
REIT is short for “real estate investment trust” and is an American invention. This financial product is similar to any conventional stock or bond you might buy, giving you the rights to the earnings stream flowing off a property portfolio. However, the benefit of this approach is that you don’t need to buy an entire home or apartment complex. Instead, you buy a fractional share in a wider interest and earn returns according to how much you own. Sure, the ROI isn’t high, but it is safe.
House Flipping
Another approach is to simply go down the house flipping route. The idea here is simple: you take a dilapidated property at a low price and then invest in it to bring it up to standard. When the work is finished, you then put it on the market at the newer, higher price and pocket the difference.
House flipping works best when you carry out the work. This way, you can avoid contractor fees. It can also be successful if you discover a building with multiple dilapidated units that you can quickly convert into high-quality dwellings.
You might want to look at various upgrades you can make to older properties like a repipe from copper to PEX. When there are older plumbing systems in place, flipping the house should include replacing the system with a modern one that’ll attract modern buyers.
Get Trained
Another approach is to enrol yourself in some sort of property training. The more you can learn about the industry, the less likely you are to make mistakes and lose money.
Many people begin their property training online these days. Providers go through all the details and help you get to grips with the elements that matter.
Once you’re trained, you can start moving forward more confidently. You don’t have to worry so intensely about making mistakes or lacking the support you need.
Consider Short-Term Rentals
You could also look into starting a short-term rental business for a platform like Airbnb. Again, this approach rarely fails because of the sheer demand from the public for accommodation that doesn’t require a long-term rental contract.
Short-term rentals often provide guests with memorable stays, encouraging them to come back. Repeat bookings are an excellent source of revenue and reduce vacancy rates.
Commercial Real Estate Leasing
Finally, you can often make a decent business out of commercial real estate leasing. Just make sure you rent the right types of property. These days, warehousing is more valuable than office space, for example.
