15 ideal ways to make money in real estate

REAL ESTATE TIPS

Ria Isobel Don 

With the right amount of strategy, credible networks, and sometimes capital, you can find a lot of different opportunities to earn money especially in real estate because it will never go out of style. People will always look for a house to live in or a location to set up their companies or businesses. In short, you can never go wrong in real estate when you invest in the right places.Here are some ways to earn money in this booming industry in the Philippines:

Appreciation

 The increase in value of a property over time can generate income for owners through reselling and refinancing. Different factors such as market condition, home improvements, and neighborhood changes can affect the worth of your asset. It is best to sell your housewhen it appreciates since it is surefire to give you profit.

Long term rentals

Becoming a landlord requires time and effort aside from the money you already invested in your unit. However, long-term rentals are a guarantee that there is a continuous stream of profits for the rest of the tenant’s contract.

Short-term rentals

While waiting for your holding to appreciate, there is an option to lease it out for shorter time periods. This will ensure that there are returns especially when the market condition is not as favorable for you to sell your property.

Vacation rentals

Buy a vacation house and rent it out for a rental fee that is a little bit higher than your monthly cost. You get to have a vacation house that generates income so in a sense, you get the best of both worlds.

Offer your unit in rent-to-own deals

It gives tenants the opportunity to buy the house from the owner after a certain lease period but with a higher rental price. If the tenant does not push through with buying your house, there is always the fact that you have earned more than your usual rental price.

Pre-selling and reselling

Condominium units are available for sale even before the buildings are built. This type of trade entails risks however, the price of the units are lowest during this period. Investors may grab this opportunity to purchase at a low price and sell it in the future at a higher value depending on its appreciation.

Purchase raw land

Raw land is usually cheaper than the already developed establishments that a client could buy. One can earn money through this by leasing it out or reselling it to other investors or developers who need a good location for their future projects.

Farm investing

Aside from buying raw land for commercial purposes, investors may also devote in land ownership for agricultural purposes.

Lease out commercial or office spaces

A commercial space for lease in Ortigas Center, Pasig.

Invest on an office space and lease it out to business professionals. Besides residential spaces, offices are also in demand as more companies emerge and expand.

Buy a warehouse

Providing space for industries dealing with large equipment can also be a source of revenue. A warehouse can also be divided into storage rooms for multiple purposes.

               Real Estate Investment Trusts (REITs)

Real Estate Investment Trust (REIT) is a stock corporation established for the purpose of owning income-generating real property assets.

Become a broker/agent

Hoppler’s October 2016 Broker of the Month, Raymond Atencio sharing the lessons he learned as a real estate practitioner. On one hand, becoming a broker or an agent would require a lot of negotiations, paperwork, and legwork. On the other, the compensation is well worth the effort once you have closed your deals.

Manage properties

If you have friends or connections who own vacation houses or investment properties, you can help them administer the transactions concerning their rental space. This is beneficial for property owners who are out of town or too busy to handle the legworks.

Be a contractor

A real estate development will not be possible without a contractor. This is a vital aspect in the industry that could produce returns when you have enough stocks to invest.

Partner with a real estate firm an industry professionals

If you have the capital but lack the connections, it is best to seek partnership with the people who have been in the industry and have already made a name. This will ensure that your investment will not be in vain and your transactions are legitimate.With the right amount of hard work, determination, focus, research, and networking, success in the real estate industry is achievable.