Contrary to popular belief, there is more than just one way to make money through real estate. Real estate investing comes in several different forms.
Below are some ideas on how you can become a successful real estate entrepreneur:
Investing in REITs
A REIT, or a real estate investment trust, is an investment vehicle that allows individuals to pool their resources and use it to earn profits or income from real estate.
Usually, REITs invest in income-producing real estate which includes, office buildings, shopping malls, apartments, hotels, resorts, and warehouses.
Many developers get the funding they need to complete their projects from REITs.
House flipping is when you buy a house and then sell it for a profit. For a house to be considered a flip, it must be bought to quickly resell.
The time between the purchase and the sale often ranges from a couple months up to a year. Most house flippers buy property off-plan or at a discount, then sell it for a higher price.
Real estate entrepreneurs often make improvements to residential properties to increase their value. They acquire old, rugged homes and fix or update them to justify selling the property for more than what they paid for or spent upgrading it.
This strategy is commonly employed by entrepreneurs who look for abandoned properties that require substantial repair. Thereafter the value of these projects increases significantly.
A majority of real estate entrepreneurs purchase residential property to rent to others. Over time, this becomes a profitable business as your return on investment is always assured.
You could also purchase the property and wait for its value to increase before selling it. This is because property values generally increase over time.
Buying Commercial Property
Commercial real estate is not just limited to office space. It also can include retail storefronts, industrial buildings, warehouses, hotels, land, and entertainment and sporting venues.
Real estate entrepreneurs often invest in commercial real estate, developing portfolios of properties that not just provide lucrative rental income, but are also expected to appreciate over time
Successful real estate entrepreneurs are clear about their real estate goals, often conceptualizing them first before making a decision. They understand their market, are team leaders and have mapped out an exit strategy even before they begin. They also constantly seek untapped areas and capitalize on them.