You’ve probably heard that it’s possible to make a fortune investing in property. That’s true, but before you start making a fortune, you’ll need to choose a path. Either you can build, lease or sell. Each of these have massive potential ROIs available but only if you make the right decision. We can look at each option in turn and consider which possibility provides the best chance at an ROI for you. This decision will be determined by how you want to approach the property market and what type of role you’re willing to take on. So, let’s get started.
Building The Dream
The home buying dream hasn’t died off completely you know, it’s just been repackaged. Rather than homebuyers buying a new property, they are building it for themselves. Or, they are buying a property that has just been built in a brand new area. We’re talking about new housing developments that are always popular on the property market. This means that investing in building new property could be a brilliant option. Particularly, if you want to make a lot of money over a short period.
To build a new home or building, you’re going to have to work with several different companies. You’ll need a design and construct team as well as a solicitor to ensure it’s legal to build your property. You’ll probably find that you’ll be working with a few groups of people to get your property built. If you find business partnerships difficult to handle, this probably isn’t the investment route for you. That said, if you can handle this, you should look into commercial building developers. They offer the chance to help you build the properties for you. Once you’ve paid for the service, you can just sit back until it’s ready to sell. They’ll work with you to make your property plans a reality.
Lease A Property
Another option is that you buy the property and then you keep control of it. Instead of selling it on to make a profit, you earn money by renting it out. You can do this on any number of properties from a commercial block of offices to a couple model homes. It all depends on what type of tenant you want to sell to. Remember, though, you will be taking on the responsibility of a landlord and everything that comes attached.
You will be responsible for the maintenance and upkeep of the property and any issues tenants may have. It’s a lot like setting up your own business. You can hire an agent to handle most of the jobs. But it can still feel like another job that you’re completing on the side. Basically, some parts of the ‘business’ will still be in your hands, and you’ll need to be able to deal with that.
This is not a stress-free investment, and if you take the hands off approach, you will run into issues. If you’re not dealing with problems tenants will complain, and you could end up in serious problems. Particularly if your tenants are business owners because they won’t take issues with your service lying down.
Buy To Sell
The option here is commonly referred to as property flipping. Rather than keeping hold of a property you buy it with the intention of selling it on as quickly as possible. To do this and make a profit, you must make sure that you are purchasing the property at the floor asking price. This is the lowest price that the owner will agree to sell at. It can be difficult to get a property price to the floor. Make sure you look at some tips for haggling with an owner online. Remember, most people will be looking for a fast sale.
Once you have bought what will most likely be a fixer-upper, you’ll have a few months to get it ready. You don’t want to waste a fortune on improvements. Instead, you need to work to cuts where possible while still making it look impressive. To do this, we suggest buying furniture in bulk from a wholesale supplier. This is a great way to kit out a full block of student apartments. Or, even multiple floors of an office building. It’s all about making the property attractive to the next buyer, thereby making a large profit.
On this route, you will be working to a time deadline. If you leave the property off the market for too long, you’ll miss the chance to sell it again.
As you can see then, anyone of these possibilities includes the prospect of making large levels of profit. You just need to make the choice that suits your interests in investment.