Real estate is still one of the best industries to invest in this 2021. There is a steady rise in residential property prices, and there may be turbulence in the commercial property market, but it’s exactly for those reasons now is a good time to invest. For one, the misfortunes of one year or period may mean better and more investment opportunities in the next. For another, investing in real estate is a good counter-play to investing in the stock market. Real estate is known for having strong performances when the stock market is on the decline. The real estate industry may be a good place to start investing in if investors are looking for alternative equity investments. If you have some capital and thinking of getting into real estate this year, here are some potentially lucrative business ideas for you to try.
House flipping is the process of buying an older property for a lower price, renovating and remodelling it from the inside out, and selling it for a much bigger profit margin. To start a property flipping business, here are some things you need to consider:
- Just like any business, you need to come up with a budget and a detailed business plan. You also need a timeline and a project scope.
- Make sure your financing is in order before you even purchase a property.
- Network with the right contractors. Don’t go with the first person who gives you a quotation. Building the right network of connections is half the work when it comes to house flipping.
- After you’ve done the work on the property, ensure that it complies with your state’s regulations and laws before you try to sell. One example is the electrical installation condition reports—make sure you have reputable and capable surveyors inspecting everything for you.
If you don’t have the financing to invest in a property just yet, consider managing one instead of ownership. Property managers in the United States can earn as much as $100,000 per year. Some responsibilities of property managers include:
- Advertising and promoting properties for rent
- Acting as a salesperson for owners, in some cases
- Touring prospective residents in available properties
- Performing basic bookkeeping duties
- Constantly communicating with residents and owners
- Coordinating repairs and maintenance issues with contractors
- Screening potential tenants and new applicants
- Settling and managing the eviction process Leading community maintenance
- Providing excellent customer service to tenants
- Dealing with problematic tenants
- Collecting and setting rents
- Working on tenant retention and lease renewals
- Supervising the move in and move out inspections
- Reporting on the status of properties and KPIs
If you think you can do these tasks, you need to finish your state’s required real estate pre-licensing coursework and pass the licensing examination.
Home staging service
Another real estate-related business you can consider is a home staging service, especially if you have a knack for interior design and having a good eye for what looks stunning and engaging in a residential property. Home staging is the process of preparing a residential property before it’s put up for sale in the real estate marketplace. The goal of people in charge of home staging is to ensure that the property looks enticing enough to potential buyers so that it can sell as quickly as possible and for the highest possible price. Here are some tips to remember when starting a home staging business:
- Understand your local housing market. This is because you need to know and have keen insight into what will appeal to your target audience. If you’re serving a primarily affluent town or neighbourhood, then you will need to accept that you will have to invest in more expensive or high-end items to appeal to your market. If you live in a more modest area, then you need to design the property in a way that can make your audience feel like they can achieve the same look without having to spend too much.
- Establish a pricing structure. This is a crucial step because you need to consider your own monetary investments, and each project or property will have its own requirements. This type of business also involves many logistical challenges, like moving furniture from one floor to another. You need to develop a foolproof formula that plugs in all this information and takes them into account so that you’re not being underpaid for all the work you do.
Starting a real estate-related business might be profitable for you if you also have a passion for the industry. Make sure your heart is in it, work hard, don’t short-change yourself, and trust that you can find a footing in the market.