The real estate business is a booming industry. As of July 2018, home sales increased by 9% nationwide and the US market continues to grow despite the rising prices in real estate properties. Real estate investment is a lucrative business and a rewarding opportunity for anyone serious to learn its ins and outs. And the best part is – it doesn’t always involve buying properties. However, there are people who might want to buy and invest property aboard and find that somewhere like Montenegro’s property prices are very reasonable putting their money into that investment.
How to Start a Real Estate Business without Buying a Property
From becoming a professional property manager to investing in house construction, there are plenty of ways to earn without buying a single property. Yes, they may require some startup capital, but not so much as it would cost a person to buy a house or a commercial space. In most cases, a little investment from your savings account will suffice for you to get started with your profitable real estate business.
Buying stocks from an established real estate company.
A very basic form of investment involves buying stocks from a real estate company. There are several ways to earn from this. One is through Home Builder Stocks. Some companies pay investors small dividends but their prices tend to fluctuate depending on the real estate market. You can also choose the Exchange Traded Fund (ETF) which is comprised of several stocks from a number of real estate companies belonging to the same class or country. It doesn’t rise in value as much as a home builder’s stock but it doesn’t lose as much value either during a downturn in the real estate market. The third is through retail stocks or from companies that sell building materials (such as home depots). Their performance is also tied to the real estate market but even though there’s a decline in home sales, chances are people will be renovating their homes so retail stocks tend to be a little more stable when it comes to their value.
Become a property manager.
A property manager acts as an authorized representative of a landlord or property investor. The most common tasks include managing rent (collection, setting up the rate or adjusting it, etc.), managing tenants (finding new ones, screening, handling move-outs), overseeing repairs and improvements in the property, and maintaining budgets or records. Property managers in the United States earn an average of $56,915 annually. Needless to say, those who have the education, skills, certifications, and experience have a higher income.
Invest in home construction.
If you have the skills and passion for building beautiful homes, you may find your luck in the home construction industry. It would take time though to study this craft but that’s just the same with any other business. Assess your financing too or some other financing options like cash advance online or SBA loans, which can make it out. Home construction may require a bigger capital as you will have to invest in various tools and equipment, and applying for a loan, such as Kapitus SBA loan, may easily provide you the funds needed. Also, protect yourself and your clients by ensuring that you have the right licenses, permits and insurance.
Invest in online real estate platforms.
These online platforms are governed and regulated by the U.S. Securities and Exchange Commission. In 2013, they updated some policies to allow individuals with small amount of capital to invest in million-dollar real estate deals which were once only accessible to financial institutions and the wealthy. Think of these platforms as more like ‘crowdfunding’. These real estate platforms are designed to provide individuals with the same opportunities and services that multimillion-dollar investors enjoy. When selecting a real estate platform, take time to know about the team behind the company – their leadership credentials, background and the like. They should have a considerable transaction experience in whatever aspect of real estate they’re focusing on.
Fix and flip homes.
Who doesn’t want to have a beautiful home? There’s a good market waiting for entrepreneurs who have the skills in home flipping and interior design. The trick is to find the right neighborhood to invest in. Of course, your potential clients want to live in a nice, safe and secure location. Also, keep in mind the average price homes are selling. Working with a real estate agent can save you a lot of time, money and resources.
Lease your home or existing property.
If you have a room, space, or an entire property to rent out, that’s another way to earn. But of course, to put a nice price tag to it, you have to invest a little on home improvements. Aside from traditional property leasing, you can join online platforms like Airbnb where you can rent out your home or property for tourists on vacation.
Starting a real estate business without buying properties is possible. Nevertheless, it’s still going to cost you money (although much smaller), effort, and resources. Take time to study the ins and outs of any business you wish to venture in. It’s the only way to be successful.
