Profitable Real Estate Businesses You Can Start
In case you didn’t know, real estate has grown to becomes a big business in many parts of Africa. Not only that, it’s one of those businesses that’s highly resistant to recession, and even in times of economic meltdown, people would always need shelter.
So, if you’re thinking of starting a business, we’ve compiled a list of the most profitable real estate businesses you can start.
1. Property Rental
This type of real estate investment focuses on buying a real estate property, such as an apartment building, and operating it so you collect a stream of cash from rent, which is the money a tenant pays you to use your property for a specific amount of time. You can buy properties and rent them out for short them such as events, or long term such as residential purpose.
This is an investment as old as the practice of land ownership. The landlord/owner is usually responsible for paying the taxes and costs of maintaining the property. Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit.
2. Property Management
This is income generated by specialists in the real estate industry such as real estate brokers, who make money through commissions from buying and selling property, or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property.
This type of real estate related income is easy to understand. For example, a hotel management company gets to keep 5 percent of a hotel’s sales for taking care of the day-to-day operations such as hiring maids, running the front desk, mowing the lawn, and washing the towels.
3. Real Estate Trading
This is the wild side of real estate investment. Like the day traders who are leagues away from a buy-and-hold investor, the real estate traders are an entirely different breed from the buy-and-rent landlords. Real estate traders buy properties with the intention of holding them for a short period of time, often no more than three to four months, whereupon they hope to sell them for a profit.
This technique is also called flipping properties and is based on buying properties that are either significantly undervalued or are in a very hot market.
4. Real Estate Advisory/Consultancy
Starting a real estate advisory and consultancy services is yet another thriving and profitable real estate related business that you can consider if you’re interested in starting a business. A real estate consultant serves as a contact available to answer any questions about the property a client intends to sell.
Also, he or she ensures that buyers are pre-screened and financially qualified to buy the property. You will also be responsible for negotiating price on behalf of the sellers.
5. Property Listing Website
One easy way of making money from the real estate industry is to create a website where people can list their properties that are for sale, lease and for rent. It is a simple business to operate in the value chain of the real estate industry because this type of business requires minimal start-up capital and it is a business that can run on autopilot.
Aside from the fact that you may want to collect sign up fee and administrative fee from those who want to list their properties in your website, you can still earn good money from adverts especially if your website attracts huge traffic.
6. Real Estate Blogging
Another easy to start business in the real estate value chain is to become a real estate blogger. It is interesting to note that there are loads of people out there who are making millions annually blogging. If you are a real estate professional or someone who has sound knowledge in the real estate industry, one of the businesses that you can consider starting is to start blogging on real estate related subjects.
The truth is that if your blog has useful and helpful contents, you will attract loads of traffic and if you have loads of traffic on your blog, you can easily secure good advertising deals from stakeholders and other businesses in your blog. Just ensure that you update your blog regularly and you will continue to attract traffic.
See Also: How To Make Money From Your Property