Real estate has long been considered a sure investment. This is the message that homebuyers receive as they decide between renting and owning. It’s also what gets communicated to aspiring real estate entrepreneurs as they try and decide how to get in on the opportunities available in booming real estate markets.
While becoming an independent real estate agent for people buying and selling homes is a lucrative career path, there are plenty of other ways to make money in real estate.
There is a reason that many millionaires have real estate in their investment portfolios. Here are some of the best real estate business ideas for entrepreneurs who want to dip their toes in the world of properties.
Fixing and Flipping Houses
Thanks to home shows, more and more people are considering using their handyman skills to fix and flip houses. They see the incredible transformations that homes undergo and look for ways to be part of the movement.
Fixing and flipping homes is not only lucrative when you know what you’re doing, but it can also bring revitalization to communities with run-down and undesirable homes.
As a real estate entrepreneur, you’ll need to consider all the different aspects of flipping homes. Everything from the initial inspection to the final closing will be your responsibility. It’s important to repair homes in desirable neighborhoods so you can sell more quickly. Having a house unoccupied for too long means that you will be spending money that could be going toward purchasing and remodeling another home.
Short-Term and Vacation Rentals
Sites like VRBO and AirBnB have popularized renting out short-term and vacation rentals. It’s never been easier to start renting out your basement for a long weekend or to make money off your vacation home when you’re not there. Many homeowners start out by renting extra space in a home they already own. As they build a following and get positive reviews, they use this as a launchpad to buy and rent out more properties.
This momentum can take a part-time entrepreneurial pursuit to a full-time opportunity that yields a high return. Why rent out your house for $1200 per month to a long-term renter when you can easily make $3000+ a month from short-term renters in the right market?
With the right business strategy, you can turn more properties into money-making engines.
Selling Luxury Homes
Getting in on the luxury home market is a smart move. It puts you in a niche above and beyond the average realtor in your area. People will often search online through sites like Dwellful.com which can help potential buyers find the top realtors near you.
You want to be the realtor at the top of that list. By focusing only on working with luxury homeowners you’ll stand out in the crowd as you build a reputation for buying and selling luxury houses.
Your client base will be far different from first-time homebuyers. They will expect a high-end experience from you as their agent. You won’t necessarily have a portfolio filled with thousands of sales a year, but the sales you make will be for high-value properties with all the bells and whistles.
Specializing in Commercial Property
Another great option for real estate entrepreneurs is to specialize in commercial properties. This can mean that you work to lease properties that others own, or that you own and lease out commercial properties to business owners. By working with businesses instead of the average consumer you’ll gain the expertise needed to help them make better real estate leasing and buying decisions. While
Turning raw land into something usable for homes, businesses, and industries takes a special kind of entrepreneur. You’ll work with the local chamber of commerce, the community, and the local government to turn forests and fields into neighborhoods or businesses or a combination of both. With a long-term vision, you can help transform a community for the better.
Getting in on real estate is a smart move for any entrepreneur. Whether you simply want to help fund a project, or you’re ready to go all-in yourself, there are plenty of ways to build a business around real estate. The next step for you is to decide when you’re going to commit and to take the necessary actions to get started.