Originally posted on https://msweetwood.com/2019/05/23/turning-over-a-serious-profit-from-real-estate-investment/
Plenty of first-time investors and seasoned experts alike look to property development as an opportunity to make some serious money. Unlike other investment opportunities, such as the stock market, property investment is something that makes a lot of sense to people. We all understand the value of a home. That means it’s easy to make smart investments because we all know what kind of property people would want to buy, right? Well, yes, but being successful in this marketplace requires research. Here’s how to start turning over a serious profit from real estate investment.
Start off with renovations.
You might have big dreams of owning a property empire with plenty of houses in plenty of different locations, and it’s definitely good to have grand aspirations. It means you have the entrepreneurial drive necessary to create a successful real estate business. However, you have to walk before you can run. If you want to turn over a serious profit from real estate investment then you need to start off with renovations. It’s all about starting with the easy tasks. You’re probably limited in the funding you have available if your business is in its early days, so renovating is the best way to make money from each of your investments. The goal is to buy a property, fix it up, and sell it at an increased value. Renovating a property doesn’t have to be costly either. In fact, the smallest details can have the biggest impact on the overall price of a house.
You have to think about things from the perspective of potential buyers. It’s all about using space to your advantage. You’re trying to help buyers imagine themselves living in your property, and a spacious house has potential. Repaint the walls with a fresh coat of white paint too; that’ll make rooms brighter, and it’ll lift the overall appearance of your household. Make sure you also do some landscaping. Curb appeal is a very real thing. People form opinions quickly, so make sure your property makes a good first impression. Something as simple as bright and colorful flowers lining the path could make a huge difference. If you want to turn over a serious profit from real estate investment then you have to master the art of increasing a property’s value before you put it on the market.
Run your operations efficiently.
As your property empire begins to grow, your operations will flesh out into a fully-fledged business. As a result, you’ll have to keep rethinking the structure of your company. You’ll probably have to hire people to help you run your business, for instance. You might want to consider outsourcing to help with certain aspects of your property business if you’re still conscious of money. It’s important to make cost-effective investments without letting your high standards of quality control begin to slip.
You should think about the software you can use to make your operations more effective. If you want to keep your team as restricted as possible then make sure they’re not overworked. Automate administrative aspects of your daily duties. Menial tasks are time-consuming, and they impede the ability of you and your team members to make sales. Of course, some time-consuming operations are essential to acquiring customers. You might want to use a service such as Mojo Dialer to automatically make sales calls. That way, your real estate business can continue to generate a large number of leads even if your workforce is limited in size.
Consider leasing.
If you want to turn over a serious profit from real estate investment then you have to consider all possible routes of income. Leasing is one such option. As your property empire expands, you can take many different routes in terms of earning money from each of your assets. Leasing properties to tenants is a good way to make money in the long-run. Obviously, you have to face the continuous costs that come with owning a property in the long-run; paying off a mortgage, maintenance costs, and so on. But you’ll also have a steady income coming in from your tenants, and that’ll help your business to build solid foundations on guaranteed profits every month. Simply buying and selling properties will bring in big profits, but it’s not quite as steady or stable as buying to let.
Photo by Steffen Coonan from Pexels
Do your research.
As with any industry, the best way to build a successful business is to do your research. And this isn’t just something you should do when you first form your property empire; the marketplace is always changing, and that means you need to keep changing your business plan to keep up with the latest trends. Pay attention to changes in your local area, both in terms of properties and the town or city as a whole. If new entertainment venues, grocery stores, or other amenities open up in certain areas then residential zones in close proximity to these enticing spots will increase in value.
Of course, it’s also worthwhile to dream big if you have a real entrepreneurial flair. Why limit yourself to the town or city in which your real estate empire began? You could start investing in cities that show potential for future growth. Doing well in the business world is about getting ahead of the curve. Sufficient research will help you with this. Take a look at records in your local government office to figure out which cities in your country are projected to grow over the coming years. That way, you’ll know where to invest in properties at a low value and turn them over for a big profit in the future.
Contact landlords.
You shouldn’t just generate leads in terms of potential property buyers or tenants – you should also contact landlords. Representing landlords who already own valuable properties in good areas will help you to expand your real estate business. It gives you an opportunity to make money, of course, but you’d also be providing help that would be hugely valuable to many landlords who might have busy lives; after all, plenty of property owners are solo investors who are just looking to make some extra money on the side. When you represent a landlord, you can essentially act as a property manager. You can meet with potential buyers or tenants to serve them well and make the maximum possible profit.