Investing in real estate is a very popular trend right now. More and more people realize how good of an investment this is. However, there are still plenty of people that don’t know the best ways to make money from their investment. If you’ve got some cash, and want to make a real estate purchase, then this article is for you. Below, I’ve revealed three simple ways to make a lot of money from your investment:
Buy A Rundown Property In A Desirable Location
When it comes to real estate, most experts agree that location is key. If you invest in something that’s in a desirable location, there’s more chance of having success. The trouble is, properties in these locations can often be overpriced. So, it scares some investors away from spending their money. However, this isn’t a problem if you look for the right property to invest in.
Ones you want to avoid will include relatively new and modern properties. These types of property will be far too expensive, and you will struggle to make money from them. Flipping these properties is almost impossible, as there’s nothing you can do to them. If they’re modern, then there aren’t many changes that need doing. If you buy expensive modern properties and rent them out, then you can make a fair bit of money. It just might take you a while to recoup your investment as the price is so high.
So, what type of properties should you look at? For me, you want old ones that are bordering on being rundown. Why? Because these will be much cheaper than the more modern ones in good conditions. With a rundown property, you have a big chance to make a lot of money. You can invest in it, make lots of changes, and sell it for a huge profit. In some cases, you can find rundown properties that are extremely cheap. These properties will border on being uninhabitable. In which case, you have a great project on your hands. Knock down the old house, and start building a new, modern, one. Before you do this, ensure you do all the right things. Check with the local council that you can build a new house or two on the plot of the old house. Call in a construction testing company to have a look at your site and see if there are any issues with it. Then, have an architect on board to help create designs of the house. Finally, you need a reliable company to carry out the build for you. When everything is finished, you’ll have a new property, in a desirable location, that will sell for an absolute bomb.
Rent Out Domestic Properties
Renting out properties is the best way to make money from your investment consistently. With rent, you get payments throughout the year from your tenants. It’s comparable to having a regular job where you get paid a monthly wage. The difference is, you get to set your own wage in the form of the monthly rent! Many real estate investments have gone from small fish to huge sharks using the rental property method.
What makes this method so good? Think about it, everyone needs a place to live. However, not everyone can afford to buy their first house. So, what do they do? They end up looking for domestic properties they can rent. Things like houses, apartments, you name it. It’s a cheaper way of finding a place to live, and have some independence. As such, you won’t find it hard to seek out tenants. Especially if you buy a property in a good area. Personally, I think the best way to start is by purchasing apartments. They tend to be cheaper than houses, and you can find some in good areas too. If you buy some apartments within busy cities, you will have droves of people trying to rent them.
The properties you buy will obviously have a huge effect on the success of your investment. But, the rental price you set will also be key. If your rent is too high, then you may struggle to find tenants. Particularly if there are much cheaper rental properties on the market. My suggestion is to check the current real estate market. See what price similar properties are being rented for. Then, you’ll be able to figure out the best price for yours. I also suggest decorating your properties and making them look modern. Go for neutral designs, so, no one should be put off by the interior.
Invest In Commercial Properties
The third way of making lots of money is to invest in commercial properties. This includes things like offices or retail spaces. Why is this a good way to make money? Because these properties will always be in high-demand. There will always be a business that needs office/retail space. By investing in commercial properties, you open the door to a couple of options too. You can either rent the properties out or sell them.
For me, the great idea is to buy an entire office building. This then gives you multiple things to put up for rent. You could have an office building with enough space for four or five companies. So, instead of only getting one source of income, you get four or five! Buying and renting retail spaces is also highly profitable. Businesses may come and go, but, your retail space still brings in the money for you.
Regardless of whether you invest in office/retail space, it must be in a busy city. Trying to attract attention to a commercial property in the middle of nowhere will be difficult. Companies want to set up shop in a place that’s close to the public. Busy business districts are ideal for anyone looking to invest in offices. For retail space, you should turn your attention to retail parks and shopping centers. These locations will attract many potential clients for you.
There are three money-making ideas here that are all as good as each other. My advice is to pick one, to begin with. Then, as you start making lots of money, you can branch out to the other ideas too.