If you’ve always fancied yourself a person with good business sense and an entrepreneurial spirit, then you definitely have the Aussie spirit. For those who have never owned a small business but have expendable capital, the real estate industry is ripe for the picking and could yield monstrous profits.
The great thing about being a property owner is that you have an abundance of opportunities for revenue available. You could buy homes and become a landlord, buy land and become a housing developer, or buy commercial property and become Rich Uncle Pennybags. The possibilities are endless. Continue reading to learn how to maximize your profits as a property owner.
Invest in rental properties
If you have enough patience to play the long game, then rental properties may be a great investment for you. Whether you choose to rent out homes or apartments, you’ll have a source of passive income for as long as you own your properties.
If you buy or build an apartment complex, then you’ll probably need a rental property loan to help you get started. You’ll also require a large staff to support your company. You’ll need everything from rental officers to maintenance people to serve your tenants.
When you’re dealing with a large staff, you need a way to track your team members’ productivity. You can measure how effective your employees are by setting objectives and key results (OKR) that highlight your company’s goals and progression. With OKR tracking software, you can see how individual team members are performing and make personnel adjustments to increase productivity and profits.
Become a real estate developer
If you have bigger plans, then you may want to go into real estate development. Even though you don’t necessarily have to have a degree do be a real estate developer, it’s best to learn all you can bout the industry.
There’s no way you can jump into real estate developments and expect to be a guru just because you know how to buy and sell. Put time into learning your market and hire people who know more about real estate than you do.
In addition, you’re going to need capital to purchase property—and lots of it. There are lenders and investors who look for opportunities to invest in property, but you have to have a well-thought-out plan to show people what kinds of returns to expect.
If you go through a bank, you won’t have to do as much to wow the lenders as you do investors, but your credit needs to be as pristine as possible. Poor credit will cause lenders to either deny you funds or charge you high-interest rates. Even if you have excellent credit, you’re going to have to shop around to find the best rates for property investment loans to find the best option.
Residential real estate development is a multi-billion dollar industry, but you should still start off small. When you first get going in real estate, you won’t know all there is to know about what makes for a good property and how to transform it. As you gain experience and expertise, you can focus your attention on the big deals.
Go into flipping homes
One of the easiest ways to make money off of property is to buy rundown homes, renovate them, and resell them—otherwise known as flipping homes. It’s not a new practice, but it’s one that has been gaining popularity over the past couple of decades.
Sometimes, you can find homes that are listed at a price well below the market value of other homes in the area. If you feel like you have the magic touch it takes to restore properties to their former glory, then you could make a lot of money as a house flipper.
As you can see, there are many different paths to follow in the real estate industry. No matter which avenue you choose, you will have a lot to learn, so the key is to remain patient and be persistent.