If you are like most people, you already know that real estate has the potential to earn you massive profits. However, what you might not know is that there are a variety of ways that you can make money in the real estate industry. Here are some real estate business ideas that you can use while tapping into the lucrative property market.
Becoming a Landlord
Being a landlord is one of the longest standing real estate ideas. You have the opportunity to make money in two different ways when you own a property and rent it out:
- Through the rental cash that you receive monthly from your tenants
- Through the increase in your property’s equity as it develops over time. You realize these gains when you look into selling the property or when having it appraised
Landlords have been around since medieval times, when actual lords owned large amounts of land and charged a rental fee for those who worked on it. It’s where the term “landlord” was derived from.
Between the two forms of making money, you can earn a reasonable amount of cash. In some cases, landlords such as the late John Jacob Astor, have earned millions.
Over the past several years, property flipping has become extremely popular, mostly thanks to a handful of television programs that have showcased the money that you can earn from it. The aspects of property flipping are quite simple. You merely purchase a home that’s in distress, fix it up and make it modern, and then sell the house for a profit. It doesn’t offer a continuous flow of cash like renting out properties, but it can create a huge, one-time profit on a single property.
You might think that you have to own a property to make money from it, but that isn’t the case. If you are interested in dipping your toes into the real estate industry but aren’t looking to purchase yet, you can try out property management. Property managers are typically responsible for handling maintenance of the property, upkeep, and even collecting rent for the owner who then pays the manager a percentage of the lease.
Bird-dogging is a relatively new term that’s used for freelancing real estate professionals, and it’s not an easy job. Real estate investors are consistently looking for new information that hasn’t been listed and that their competition doesn’t have. If you are capable of finding new sellers before they list their property, you can earn some real money from investors as a bird dog. It’s important to keep in mind that investors don’t pay for information on properties that have already been listed. Similar to freelancers, the majority of bird dogs work from home.
Real Estate Photography
It might seem out of left field, but not all real estate business ideas have to do with the property itself. When you look at a property listing, you always see photographs of the property, and sometimes even virtual tours. A real estate photographer’s job is to take photos of the specific property for agents, sellers, or landlords. The photographs then get used for portfolios or online sales material.
Real estate photographers typically have flexible schedules as the work depends on how many properties they need to photograph. The number of hours that get spent on location is largely determined by the size of the property and the type of photos that the property owner is looking for.
These are just a handful of real estate business ideas that break out of the real estate agent circle. The hardest part of getting into the industry is taking the first step and choosing what type of business you want to start in. If your end goal is to become a real estate agent in the future, it’s always beneficial to have hands-on experience in a variety of real estate businesses that are specifically designed for real estate professionals.