The real estate sector is comprised of many different types of businesses. And they aren’t just about purchasing, renting, and selling properties. There are numerous subsidiary businesses that are parts of the real estate market, and in them, thousands of people make money every day. Of course, to truly thrive and earn big profits in any business requires due diligence, research and being well-versed with the ins and outs of the daily processes and activities that accompany it. The good news is that there are still a lot of opportunities if you select the right real estate business idea that fits your skills and needs.
Property Management
It’s a common myth that you have to own real estate to make cash from it. If you’re looking to enter the real estate sector without buying property, you can try property management. As a property manager, you will deal with maintenance, upkeep and in numerous cases collect rent for real estate owners in exchange for a fee (often a percentage of the rent). Moreover, you will have to be able to find new tenants in order to make sure the properties are rented out regularly.
Keep in mind that you will likely have to work full time in this occupation. As a matter of fact, one of the most difficult parts of property management is that it is a 24/7 job. This is because you have to be available in the event of an emergency at the real estate you manage.
Real Estate Brokerage Firm or Agency
Nowadays, around 91% of homes in the U.S. are sold via a real estate broker or agent. This real estate business idea involves the selling, buying, and letting of real estate assets on behalf of clients. You will also handle listing buildings for sale. Real estate brokerage firms connect purchasers and sellers and approach every sale with a win-win mindset.
In other words, they act as an intermediary between buyers and sellers of real estates and try to find sellers who want to sell and buyers looking for a purchase. When it comes to getting paid, you will acquire a commission for every successful deal you make according to your own rate of a commission charge.
Real Estate Mobile Application Development
If you’re knowledgeable about programming and coding or are able to assemble a team of developers to build an application focusing on the real estate industry, you can definitely earn a living in real estate mobile app development.
For example, your app can provide access to buildings for sale. Then, sellers of real estate can list their buildings for sale, while purchasers can look for properties they want to buy. In other words, act as a platform that connects purchasers and sellers of properties.
Landlord
For many individuals, becoming a landlord is the groundwork of their real estate business model and the first idea that comes to mind. By owning a building and renting it out, you will be able to make a living in two ways:
- You earn long-term profits through the appreciation of your real estate’s equity over time. Later, you capitalize on selling the property. You can also draw on the equity you develop to finance improvements, repairs, and expansion of the portfolio.
- You’ll receive payment due to the cash flow you’ll acquire in the form of rent every month. As you utilize this monthly cash flow to pay off the real estate and increase rents in tune with market increases, your profit margins will grow as the year passes.
However, being a landlord requires a ton of upfront investments, especially when it comes to growing and scaling your business properly. Thankfully, there are a lot of options for financing a real estate business even if you don’t have the capital when starting out. From flexible unsecured business loans and real estate crowdfunding to venture capitalists and angel investors, nowadays it’s more and more easy to find a financing source for your real estate business.
House Painting
There is quite a big demand for house painting, as more and more people are looking to purchase homes for themselves. While landlords and other real estate businessmen are constantly looking to attract new tenants and customers with beautiful houses. If you are skilled in painting, you will be able to start a house painting business and make money from building owners.
You can also partner with interior decoration agencies so they can always link you up with a contract since the work is quite similar. Starting this kind of business only requires that you build a simple website that can showcase your portfolio and designs. There is no need for large starting capital or fancy offices during the early days of your house painting business.
Real Estate Construction and Development
Real estate development or real estate construction, is a multifaceted business, that encompasses practices that range from the re-lease and renovation of existing buildings to the sale of improved parcels of land to others and buying of raw land.
While many real estate developers deal with real estate construction, real estate development is different than construction. As a real estate developer, you will purchase land, finance real estate contracts, construct or have builders build projects, create, innovate, control, and organize the process of development from start to finish. Although you will take the biggest risk regarding the creation or renovation of real estate, you will also receive the biggest rewards.
Related: 7 Characteristics of a Successful Real Estate Developer
Property Flipping
One of the most lucrative property business ideas on this list, flipping property has been popularized by various TV programs over the last couple of years. It involves purchasing a distressed house, repairing and modernizing it and then selling it, often to a retail purchaser. Although with house flipping, you won’t have the same cash flow of rental income, it can generate big, one-time profits on individual real estate deals.
You can do this job either full time or part-time. Different general contractors will often purchase and flip one or two properties a year for bonus profits on the side. On the other hand, there are real estate investors who specialize only in house flipping. One of the major issues to consider if you’re thinking about this business is carrying costs. To have a profitable flip, you’ll have to minimize the amount of time you hold the real estate.
Plumbing Business
There is a lot of demand for plumbing. On the other hand, it is also a hyper-competitive sector in most areas. In order to succeed in your plumbing business, you will need to:
- Market it properly.
- Develop a pricing strategy.
- Provide high-quality work.
Before you begin a plumbing business, it is recommended to thoroughly research the competition in the area. You have to prepare your business and marketing plans in such a way that it can aid you to occupy at least a part of the market you’re entering. You should also decide about the focus of your plumbing business. Will you focus on installing new systems? Or make the sale of tools and supplies your dominant business activity?
These are just a couple of the many different real estate business ideas that are used by many entrepreneurs to develop profitable and sustainable businesses. Whether you wish to become a landlord, real estate agent or property manager, the most difficult part is taking the first step. Start working on your property business today so that it can turn a profit in the future.
This article has been contributed by Amelia Atkins.