Having your own business is very modern now, and these days, almost everyone dreams of investing their money and creating extra income. Here are 3 business ideas for investing in real estate and help you build a steady and additional income.
Real Estate Resale
Reselling apartments, houses, or commercial properties can be very profitable. Let’s see three ways of making a profit from resale.
First, you need to find properties that are being sold below market value, which can later be resold at the market value or higher, getting you a potential profit of 30-50%.
It's important to take into consideration all the factors that can influence the pricing: the property's condition, existing infrastructure, availability of necessary documents, absence of any debts, potential inflation. These kinds of properties can be sold immediately or shortly after purchase, allowing you to get your investment back and earn a profit.
In the second case, you can think of purchasing an apartment or other property that is still under construction or with old repairs. By investing in repair and decor, you can resell the property at a higher price and earn a profit.
For the third option, you should focus on properties that are located in areas with strong potential for future development.
These areas are usually the districts with active construction works, projects of regional significance underway and plans for developed infrastructure: educational, cultural, and entertainment facilities, supermarkets, etc. If you purchase a property in such neighborhoods, then you don’t need to resell them immediately, but wait until the real estate value in the area reaches its peak.
Rent Out Your Real Estate
You can get a steady monthly income by renting out your property. Let’s look at these three ways for renting out real estate.
In the first case, you own residential or commercial real estate. If the property is in good condition, you can rent it out immediately. If the property is not in its best state or does not match with operational goals, then you can think of investing in renovations and further renting it out under more profitable terms.
In the second case, you may not own real estate but have investable money that you can use for purchasing a property for rental purposes. It’s necessary to take into account a few factors: the demand for the property, its condition, and any potential problems that could affect its future operation.
In this case, you should also take into consideration the fact that investing in property improvements can allow you to rent it out on better terms.
In the third case, you may not own any real estate, but you have land, available funds, and at least half a year to undertake a property development.
We should note that this case is considerably more laborious and requires a thorough analysis of the area's specifics and market demand to understand the type of real estate that you should start developing. After that, you need a building permit, manage design, construction, and finishing. Keep in mind that in such a case, recovering your investment costs may take a longer period.
Sublease of Real Estate
You can also generate a consistent monthly income with relatively low investment by subletting properties. At first glance, everything seems clear: you need to find inexpensive real estate and rent it out at a higher price. Although in reality, you will need to have a clear strategy for making the property look more appealing, this way ensuring that it can be subleased for a profit.
Business ideas for investing in real estate and generating income are not limited to these. If you wish to invest in real estate and make a profit out of it, you can get guidance from our experienced professionals. We are always ready to offer personalized and effective solutions just for you.
