Whether it’s in Davao City or in any other parts of the world, there is a plethora of investment opportunities that promise financial freedom. One of the best investment strategies that will never go out of style is Real Estate investing. When done right, real estate investments can be highly profitable.
However, it’s important to note that like any other investment method, it’s not a get-rich-quick scheme. It’s not a quick and easy way to make money. You also need to invest time and effort. For this reason, you must get into real estate armed with sufficient research and expertise. In this article, we give you comprehensive strategies on how to make money in real estate.
How to Make Money in Real Estate with No Money?
Worried about spending a lot of capital? Don’t fret! There are various ways to start investing in real estate even when you don’t have money.
- First, you can consider trading your assets like cars or jewelry
- Secondly, you can look for an investment partner who has cash. You can also consider getting a loan from the bank.
- Another option is to take over another person’s mortgage payment. For instance, if someone else is having a hard time paying their mortgage, you can take over. Of course, you’ll need the necessary legal papers to make sure that everything is in order.
As a real estate investor, it’s crucial to practice due diligence when executing your plans. You must come up with a thoroughly researched plan. Although the current real estate market in the Philippines is strong and profitable, it’s still necessary to understand which strategy works best for you. Below are a few tips on how to make money in real estate to help you in evaluating your options.
Strategies On How to Make Money in Real Estate
Fix and Sell Properties
This strategy entails buying undervalued properties that require renovation and sell it at a higher cost. Look at it as giving a property a much-needed makeover. In doing so, you’ll increase its market value. However, to make money in flipping houses, you need to overcome a few challenges.
First of all, you need to be knowledgeable about the local real estate market. This will help you determine which property will be profitable in the future. Secondly, you need to be able to purchase the property at a much cheaper price. This is crucial in earning a profit. Remember, you will need to take renovation costs into consideration as well. This might include repainting the house, overall cleanup, etc. Once you’ve beautifully and successfully renovated the house, you can then sell it at a higher value.
Rent Out a Property
If you have a property in a prime location, you can earn money by renting it out. It could be a long-term or short-term rental strategy. This strategy is not only limited to house and lot properties. This strategy is also perfect if you own a condo unit that is located in the city.
How to earn money in real estate through rental? Your property should not only be attractive to potential renters. It must be situated at a prime location. Somewhere in the city or near schools, offices, or major establishments would be ideal.
Additionally, with the rise of Airbnb, an online marketplace for short-term accommodations, you can easily connect with would-be renters. This app makes it a lot easier to find tenants for your property.
Sell Commercial Real Estate
Another strategy on how to make money in real estate is investing in commercial properties. This type of property is an excellent income generator because it has a high demand in the market. People and businesses are always looking for spaces for retail and offices.
When investing in commercial real estate, you need to keep in mind that they are different than residential properties. Additionally, it places more emphasis on usable square footage.