Everyone seems to know that most billionaires make their money off of real estate. But it isn’t just about buying and selling property, and it isn’t as simple as buying one property and watching the cash come flowing in. There are a lot of things to consider. But there are also a lot of ways to make cold hard cash when you are investing in just a couple of properties. If you’re looking at becoming a real estate investor, you can rest assured that it will be a lot of work. But if you are smart and well prepared, you can find many ways to turn a profit in ways you maybe hadn’t considered. Real estate investing has its ups and downs. And while pursuing the goal of making great money, you have to realize the hard work and dedication accompanied with education, training and implementation are what make you a successful investor.
Flip & Sell
One of the fastest ways to turn a profit is to invest in a property, flip it, and sell it, this is known as active investing. If you are looking to actively invest, this means that you are buying at the right price, renovating and re-selling in a short amount of time to get the returns back to you and your investors so you can keep this investment momentum moving forward. Depending on where the property is located and what kind of property it is, you could have an offer as soon as you put it on the market. It could also take a while. But once the sale is made, you have a huge chunk of change in your pocket. Plus, with the world of DIY and upcycling, you can now flip houses for a lot less than you could a decade ago.
Rent
While it may seem like a great idea to get that huge chunk of change, renting is also a great option and this is known as passive investing. This means that as the asset has capital value that adds to increase the rent premiums. And the long run, you could end up making just as much, if not more over a period of time as you would selling the property outright. With the help of real estate websites, AirBnb, and social media, you can end up making a pretty penny by renting a home or property. This can be especially true if you have invested in multi-family housing such as a duplex, a triplex, or an apartment complex. Consider all the options of renting, and don’t hesitate to hold on to a property for the purpose of renting it out.
You can also get outside of the box and consider renting any vacant property that you may have. Either to someone who can make us of it, or by installing billboards and other advertising tools. Land adjacent to farms could easily be converted to farmland and be used by a farmer looking to expand without having to buy additional land. Parking garages, shopping complexes, and other multi-use spaces are all something to consider.
Ancillary Revenue
Ancillary revenue is “revenue that is derived from goods or services other than a company’s primary product offering” (Wikipedia). For a rental property such as an apartment complex, this could include laundry fees, parking fees, pet fees, vending machines, on site gym services, etc. In this vein, the options are endless, and depending on the amenities that you are looking to offer, you could create a luxury service for those who are willing to pay for it.
How do I Start?
With pursuing real estate investments, you must have a business plan, real estate investment education, mentors and systematic, consistent business systems and processes that will help you automate and stay on track. Go find and join real estate investment professional organizations and educational programs, get plugged in to your local chamber of commerce, meet people and build relationships. Your credibility is only good as your reputation. And your reputation is only as good as the trusting relationships you build. In our experience, we found the best way to become successful was to work with other successful investors. As part of our learning process, we have spent much time listening and learning from what we consider to be experts in their field. Magnolia Design Properties is here to build long term relationships with interested investors. Call us today at 1-844-428-9776 to start the journey of investing in multi-family.
