So you want to make money in real estate and choosing a different path. Many investment gurus will tell you to buy a land, register yourself with RERA, take all the necessary permissions and start selling pieces of land or under construction house unit. Some of them will tell you to become an agent (seller’s or buyer’s agent) and start making real cash. But apart from these two methods, there are some proven ways to make money in real estate and you don’t have to become a builder or agent to succeed.
Use your knowledge to buy
Don’t buy anything that promises good returns on investment. Buy something you know about or you can learn to make money in less time. For example, buying a tiny house and searching for tenants may not be easy for you. But if you know a little about renting, buy a luxury property, put it on Airbnb or similar services and use the technology to find tenants for you. It’s easy to learn and brings quick, yet better returns than conventional methods of renting.
Consider up and downs
An investment should not make you spend sleepless nights. There are things which you can’t control, but with careful steps, you can make sure investing in the right property. The recession is a part of the business and you should choose properties that are recession proof. The boom in real estate can be temporary in many markets, and it’s impossible to make sure that your deal is perfectly timed. Recession puts many people out of the business, but it doesn’t happen to everyone. Own many properties, but always keep your decisions future proof.
Once you buy a property at a lower price than the competition, only the half battle is won. You can’t rent or sell it unless you find someone who is like you. Many real estate agents and investors spend time in finding right people to sell a property. Selling smart means you find someone who is just like you and sees your property in the way you look at it. It’s not easy, but once you get someone, you’ll realize how important it is for everyone who wants to make money in real estate.
Don’t over trust your abilities
You are a winner in your own industry, but it doesn’t necessarily mean that you can win the real estate game. Things are different in every business, so before you buy something, do your homework to prepare yourself for better and worse. Don’t go for properties that are riskier than you think. Instead, buy something you know about. If you know about buying residential real estate units, go for it, use your knowledge and try to succeed. Don’t go for other options just because they sound interesting to you.