Are you wondering the different ways in which you can use to make money in the Real Estate Business? There are different ways and in this article we will list out the 5 different ways to make money in the real estate business.
In the world today, there is absolutely no investment that is certain.
When you invest in shares, bonds and other investment offers, you can’t be certain as you only make money if the company you invested in keeps profiting. But what if the market collapses then what happens to your money? It disappears.
In all my years of looking for the best place to invest I have never seen any as lucrative as real estate. This is not to say that other forms of investing are not profitable as they are but real estate investing takes the number one spot. Before we dive into the different ways you can make money in real estate I want to explain what real estate means.
What is Real Estate?
Real estate is gotten from the term real property. Real estate can simply be described as a physical property which includes land, building and every natural resource that can be seen. This natural resources includes water, minerals, crops and so on. When it comes to the business aspect of real estate, it involves the buy, selling, renting/leasing of buildings or houses. Real estate is classified into 3 sections.
Sections Of Real Estate
Residential Real Estate: This refers to building or selling of lands and houses for individuals or family to reside. This is the part of real estate that focuses more on the dwelling of people and not for business purposes. Different structures of buildings can be done in residential real estate such as self contains, batcher, flats, duplex etc. This is most talked about real estate investment in Nigeria and all over the world.
Industrial Real Estate: This type of real estate is meant for storing or manufacturing of products. A warehouse can be said to be part of Industrial real estate. Most time industrial real estate is done where there are large lands.
Commercial Real Estate: This type of real estate is meant to produce profit for its users. Unlike the other real estates, the commercial real estate focuses on the building of schools, offices, shops, health centres, hotels and so on. This is meant to accommodate large crowd looking to get one thing or the other.
Back To The Main Business
The beauty of investing in real estate is that it never depreciates but keeps appreciating over time. A land you may buy for ₦600,000 today can be worth ₦5million in the next 5 years.
Starting a real estate business can turn you into a millionaire overnight.
Since the real estate business has proven to be a profitable venture lots and lots of people are going into it. Majority of the people that invest in real estate focus more on the purchase of land and building but there are still some other ways you can make money from real estate.
Most at times people think you must have a lot of money before you go into real estate but this article will show you how you can without having lots of money.
Without wasting much time let us jump into the 5 ways you can make money in real estate.
Become A Real Estate Broker
Becoming a real estate broker does not require you to have a lot of money, though for you to become a real estate broker there are certain licenses you need to have. Unlike a real estate agent who has to work for a firm a real estate broker can work independently. As a real estate broker, your job will be to help other people buy or sell their properties. As a broker you are paid a certain percentage of the money you either bought or sold a property. Example let’s say you sold a house for ₦10million and you get a cut of 2% that will give you ₦200,000 as profit. As a real estate broker with all the right licenses you can function in residential real estate, industrial real estate and commercial real estate.
Become A Real Estate Wholesaler
Starting a wholesaling real estate business does not require you to have money to start. Wholesaling in real estate business involves you buying a property at a lesser price and selling it at a higher price. This will involve you to enter into a contract with someone that wants to sell a property and you go and look for a buyer who you will sell the contract to at a high price. Example let’s say you make a contract to sell a person’s property for ₦1million and then you look for a buyer and sell the contract to that buyer for ₦1.2million you make a gain of ₦200,000 without spending any money. The fun part about becoming a real estate wholesaler is that even when you can find a buyer all you have to do is stop the contract and you are free.
Become A Real Estate Investor
This is the most popular when it comes to real estate business. This business requires you to have lots of money as it involves the buying, building, renting/leasing of properties to make profit in a long term. You can buy a house and get tenants to live in while they pay you a certain rent every year. Real estate investing also cuts across all the different aspects of real estate. If you have enough money, you can purchase a warehouse that people or companies can use to store their products or get a building where people can rent office space and you get paid for life. For anyone thinking of investing in real estate the geographical area of the land you want to buy is very important. If you are able to secure a land in a good area, the chances of you increasing your rent to make more money are high.
Become A Property Manager
Becoming a property manager does not require much money or expertise. As a property manager, a real estate investor will hire you to help them manage their properties. You become the middle man between the real estate investor and the tenants. Your job basically would be to communicate with the tenants so they pay their rents on time, make sure that the property is well taking care of. His is also a great way to make money in the real estate business.
Become A Real Estate Developer
Unlike becoming a real estate investor where you have to buy and rent properties, as a developer you build a property from scratch and then either sell it or rent it or do both. Creativity is needed to succeed as a real estate developer because it requires a lot of work and there are risks involved. A real estate developer can also buy a building that needs renovation, renovate it and they sell it. As a real estate developer, you can build an estate which requires you getting architects, building planners, contractors. Real estate is one of the ways millionaires and billionaires invest their money and with the 5 different ways, you are sure of taking advantage of the booming real estate business in Nigeria. Do let us know what you think about this article in the comment section.
Which ever of this different aspect of Real Estate Business you can do you can start today.
Do let us know what you think of this article in the comment section.