Real estate is one industry that will not lose significance regardless of the economic condition. After all, shelter is an essential human requirement. It’s been one of the most profitable industries to get into, and it has many avenues for growth, especially if you’re a budding entrepreneur.
However, the real estate industry is always changing, much like any other industry. There are trends and shifts in customer preference that business owners and entrepreneurs need to be aware of. If you’re looking into getting into the real estate industry but find it difficult to think of ideas, below are some concepts to get you started.
Look into Fixer-uppers
There is an increasing popularity in home renovation and refurbishing. Perhaps this results from the ever-increasing real estate prices and competition or maybe the ever-changing design trends in real estate. Regardless, taking a fixer-upper and redesigning it into something marketable and profitable is worth looking into.
The interesting point with a fixer-upper is the relatively low cost of buying it up-front. As they’re often cheap, they make for a great purchase for those looking into cheap properties. The difficulty lies in the renovation. Looking for a property that’s worth refurbishing and breathing new life into can be challenging, but finding one can be worth the effort. Hiring a general contractor to fix up the property can make it look new again and make it profitable. However, balancing the cost of purchase and renovation and the resale price can be tricky. Ultimately, it’s still a viable effort if you’re looking into getting into the real estate industry.
Hunt for Properties Through Online Auctions
Auctions have always been a part of trade and commerce since the dawn of the organized economy. While there may not be as much physical auction nowadays, this doesn’t mean they’re all gone. They’ve simply moved to a more convenient location, namely the internet.
Hunting for properties through online auctions is an effective and efficient way to look for great deals in the real estate industry. Many websites allow for auctioning properties, and one simply needs to hop on the website to get started. While there may be differences when it comes to the traditional buying and selling of properties, the fact remains that many online auctions hold great deals. Consider looking for one that’s within your area, or look outside your location if you’re feeling adventurous.
There are many types of common real estate auctioned online, and here are a few to get you started:
- Retail properties: Shopping centers, business establishments, stores, and more are among the most common properties auctioned online. This kind of property is great for investors looking to get into commercial real estate ownership.
- Short-sale properties: These properties are being sold by a property owner, with the intent to pay a debt to a lender. Often done to avoid foreclosure, this is also one of the most popular types sold online.
- Foreclosed properties: These are the ones that have already been foreclosed, and are being sold to cover the remaining loan balance.
Online Bed and Breakfast
Since more and more people are becoming digital nomads (largely in part to the evolving nature of jobs), many people keep changing from one place to another. This, in turn, creates the need for short-term rentals. This need is then answered by the presence of apps dedicated to short-term bed and breakfast rentals.
Services like Airbnb and Trivago have dominated the online bed and breakfast industry, as they allow property owners to put up their property for rent. While there was an initial downturn in the latter part of the first quarter of 2020 due to the pandemic, recent statistics show that it’s recovering. As the pandemic begins to wane and more people and businesses begin to go out and reopen, the bed and breakfast industry will see a resurgence. Don’t close your doors on the bed and breakfast business just yet, as it still remains a highly profitable venture.
Be an Apartment Landlord
The traditional way of owning a property and renting it out is still a very reliable form of real estate business. While owning an apartment or a house that you can put on rental can be financially rewarding, there are many risks involved. Being aware of the ins and outs of property ownership is what’s crucial in this business. There’s the high cost of entry and upkeep to think of. But at its core, it’s a fundamental format that is still proving to be a lucrative business.