The Real Estate Business is one of the easiest and safest methods to get rich quick.
If you are a person who has a decent amount of money and you’re looking to start a business to get rich, then this industry will you.
One method that has always worked and is still working is property development.
How Property Development Works
Let’s assume you have around $100k in your bank account. All you need to do is to look for properties in a busy area that would attract buyers or renters (if you choose to rent out a property). The best way to start this process is by looking for properties worth at least $200k. The important thing to note here is, you should look for areas where the real estate value is on the rise. Most people fail here because they look for properties at a very low price point and then struggle to sell the property later on. Once you have picked the right property and know its value is worth it, you’re ready to move to the next step.
The second thing to do is to look for loans, knowing you’ll need enough to cover $200k (the value of the property). Let’s say you get $200k as a loan, now you can look for properties worth $200k and invest $50k to $75k to properly remodel the house.
At this point, you have spent around $250k to $275k on the necessities to develop a property. You can now look for buyers and set your selling price around $400k. The important thing to note here is always paying attention to the margin you want to make on a property. While any positive margin is great, you may find areas where you can make 50% margin or more. Expect buyers to want to negotiate, so set a price that is comfortable for you and meets your return requirements.
Marketing the Property
Once you have remodeled a home and set its price, you’re ready to market the property for sell. Post the offer in various real estate forums, run ads on Youtube, Facebook, and other social media outlets to put your property in front of the right buyers. You could decide to hire a real estate agent to handle the marketing aspect for you, but be prepared to pay 3% agent fees. If this 3% fits into your profit margin, it could be the easier way to go.
Take some time to learn the success stories and how people fail in the business. It is also smart to invest your money in a couple of properties than one. But sometimes, when you invest in one right property you can earn big.
Real estate property development is one the best ideas for people looking to get rich and in a quick amount of time. If you really think about it, all it takes is three good deals to become a millionaire. And you could finish these deals within a year (especially in the current real estate market).
If you are a starter you can always use the free resources available on the internet. Spend time watching YouTube videos to learn the basics and how realtors bag big deals and sell them for a higher price. There are also good courses for people planning to start the business and you could get proper guidance from experienced members.
Also try to join real estate and property development communities where you can discuss and ask your queries with your fellow members. You can look for forums and Facebook groups too. Facebook groups can help you to reach local real estate agents and can also connect you to people who are willing to invest and buy properties in your area. Having a good money mindset will help you inspire to look for new opportunities and grow big in a quick way.