Many people who are looking for new career paths and professional ventures will turn to real estate. Why? Because the need is constant – and abundant – meaning there is always money to be made.
Real estate can refer to many aspects of property ownership. It makes up buying and selling land, residential, commercial, and industrial properties. It even encompasses working on other people’s houses – like builders or contractors.
Regardless of the type of real estate that you wish to pursue, all options have a solid track record for providing a return on investment.
Here, I discuss four potential paths to consider in real estate if you’re just beginning.
Tips To Earn Income From Real Estate Business
1. Become A Contractor
Contractors are essential in the real estate industry. They oversee all aspects of construction in diverse ways, including design and planning, as well as general building supervision.
Becoming a licensed contractor will help you take on larger projects, build credibility, and make more money. You could even go on to build your own house.
Being a successful contractor requires a great deal of business knowledge, as you’ll be dealing with subcontractors, as well as client concerns.
A good contractor should be a detail-oriented multitasker who ensures that all involved parties have what they need to get the job done efficiently.
A contractor should be certified to have a highly rewarding career. This way, they get to play an important role in real estate development by taking on big projects.
Being a contractor gives you the opportunity to be self-employed, which can provide a desirable amount of flexibility with scheduling.
Because new buildings are always needed, contractors do not struggle to stay busy or make money. The moment one project ends, another will come right through the door.
This is a great option if you want to make money in real estate but don’t have the capital yet to invest in property. By becoming a licensed contractor, you’ll soon be able to build the funds necessary to get onto the property ladder.
2. Become A Realtor
Since realtors are consistently in demand, many people looking to make money will choose to obtain real estate licenses. A huge perk is that the process of becoming a realtor is noticeably quicker than many other career shifts. The licensing process can be done in a few short months.
The earning potential for realtors is high, as there is no limit to how much a realtor can earn on an hourly basis. It is certainly a “you only get out what you put into it” situation, as devoted, hard-working people are the ones who tend to succeed the most as realtors.
The business of real estate is always evolving. Many successful realtors are the kind of people who thrive in ever-changing environments and feel unfulfilled in typical office settings.
They must be smart, forward-thinking and possess great people skills. Realtors are never bored. They experience frequent change, learn about new trends, and adapt to different markets.
For many, this makes the career path all the more exciting. Plus, finding people their forever homes is a truly fulfilling vocation.
3. Invest In Property
Being a contractor or realtor is not for everyone. For those who prefer behind-the-scenes roles in real estate, investing in property can be a rewarding business venture.
It just depends on having the capital, to begin with. Buying outside of cities is generally much cheaper; though the return on your investment tends to be higher if you buy to sell in a bustling market.
A simple way to begin investing is to purchase an income property, such as a small home. Smaller houses will require smaller deposits and are therefore best for first-time buyers.
From here, you can decide between two options: fix up the home with the goal of immediately selling it on to turn a profit, or move into the home as your primary residence.
Hopefully, in the event that you live in the home, and after making improvements to the property over the years and increasing property prices, you should be able to make a handsome profit when you decide to sell.
Time your sale well – during recessions and economic downturns, property prices tend to stagnate or even fall. Stay in the property during such times and put it on the market during times of economic prosperity and rising real estate prices.
4. Buy To Rent Property
Another option is investing in property with the idea of renting it out to create continuous cash flow. Becoming a landlord isn’t the easiest option, but it can be very lucrative, especially in cities.
Choosing to lease the house depends on your own living situation – if you choose to lease it, you’ll likely be renting or paying a mortgage on another home. You will need to do some calculations to work out whether this option is financially viable for you.
Remember: property values will appreciate over time. This means that with a rental property, your net profit will continue to increase based on how long you choose to rent the property for.
For example, it is estimated that most rental properties will appreciate in value by 5% after 10 years.
If you are in it for the long run, the profits from renting a property can be outstanding; although you do need to factor in the costs of leasing property, such as hiring a property manager, paying for repairs to the house, and paying to market the home when tenants move out.
Which To Choose?
Whether you’re looking to oversee construction, sell property, or get into the business of investing, these are four profitable ways to make your mark in real estate.
You may already have an inkling of which you think you want to go for, or which you can currently afford.
Take a long time to carefully consider which type of real estate role is best suited for you, then enjoy the exciting benefits – and, hopefully, watch your bank account grow.