Making money in real estate is possible, if you understand the market. But what, precisely, should you be doing?
That’s the big question.
The purpose of this post is to look at some of the innovative strategies you could use to increase your returns and get the results you want. By the end of it, you should have a clearer picture of the tactics that actually work.
Co-Living Spaces
One option is to create co-living spaces for people. These are handy for young professionals who don’t have families and don’t mind renting together.
This strategy works best in big cities with large markets. You can put the price on platforms as the one that the individual pays, showing them just how much cheaper their lives could be if they spent time indigo with others.
Of course, you’d want to make sure that the standards are high. But if you can get the arrangements right, you can often make a lot of money.
Buying Wholesale
Buying wholesale real estate is another strategy that you might like to try. It’s where investors (the wholesaler) buy a property under a contract at a discounted price and then assign that contact to a buyer. Technically, you never own the property, you are simply passing it onto someone who will eventually take control of it.
The process sounds complicated and it can be. But once you get to grips with it, you can often make a lot of money in a short space of time.
Opportunity Zone Investments
It’s also worth looking into opportunity zone investments. These are special areas where authorities relax some of the rules, allowing you to make more money than you would in the usual regions.
Of course, you have to be careful with these. Governments don’t usually hand things out for nothing. And you may have to do some development work. But if you can get the balance right, then the results for the bottom line can be exceptional. You may find that you are actually making more money in these zones than you would in downtown areas with heavy footfall and higher rents.
Build-To-Rent Communities
We’re also seeing a lot of property investors getting into build-to-rent communities. These are where you develop residential units for long-term rental income.
The great thing about this approach is that you can tailor it to the market. If you know there is something your tenants want, you can include it and charge a premium over the going rate. This approach works particularly well in areas next to transport hubs. Professionals want accommodation that allows them to simply walk downstairs and get on a bus or train. It should be that simple.
Fractional Ownership
Finally, you might want to consider making money in fractional ownership. The idea here is to share accommodation with other investors and take the profits in proportion to the amount of money you originally put in. Leveraging technology in this regard can be helpful as it allows you to make payment more fractional between you.