If you’ve seen every episode of Property Brothers and can’t get enough of Selling Sunset, you might want to start a business in the exciting world of real estate. In the real estate market, there are many different kinds of businesses, and each one offers a lot of exciting opportunities. The current housing boom is marked by mortgage interest rates that are at all-time lows and home sales that are also at all-time highs. There are fun things to do, like the 10 ideas below, for people who want to join in the fun.
Flipping houses
is a good way to make money if you know a lot about building and selling. Flippers buy homes that are undervalued, fix them up, and then sell them for a lot more than they bought them for, usually within the same year. Most flips are self-financed, which means that the buyers pay cash instead of getting a loan from a bank.
To be successful, you need money to invest, the ability to find experienced contractors to do the work, the time and patience to manage the process, and the knowledge that selling at the right price takes time.
Real estate brokerage:
In 2020, 88% of people who bought a house did so with the help of a real estate salesperson. Even when the market changes, real estate sales can be very profitable, and the best way to get more money and freedom is to become a broker instead of an agent. Most brokers start out as agents at a firm and spend at least a few years building their skills and client base. Then, they’ll be ready to take the exam to become a broker and go out on their own. Different states have different rules, but once you have a license, you can start your own business. Then, you can be a broker-owner who only makes money from the sales of the agents you hire, or you can be a broker-owner who also sells.
Most of the time, brokers make more than agents because they get a bigger cut of commissions. If you want to be successful, you should think about how well you can focus on a market segment, like a vacation or second homes, condos, or properties that make money.
Property management
Many busy real estate investors who own rental properties don’t have the time or skills to handle the day-to-day operations and tenant needs of their homes or businesses. Instead, they hire a third party to advertise vacancies, screen potential renters, handle repairs, collect rent, and keep an eye on property maintenance, usually for a percentage of the monthly rent collected. This could be a great business opportunity for someone with good communication and management skills, who is detail-oriented, well-organized, and, depending on the state, has a real estate license or a property management certification.
The best way to find properties to manage is to build relationships with reputable real estate agents and contractors who know local landlords and offer a referral fee for leads that turn into clients. You might also want to use the power of Facebook groups and run an online paid search campaign to let local property owners who are looking for a manager know about your services.
Property valuation
An appraisal is one of the most important parts of buying or selling a home. When a lender is involved in a real estate deal, an appraisal is usually needed to figure out how much the land or property is worth. Appraisers make these estimates based on a number of things, such as the property’s features, upgrades, and needed repairs, as well as the prices of similar properties that have recently sold and current market trends.
If you are good at figuring out how things work, you might want to start an appraisal business, which is a growing field. There are no barriers to entry, but most states require you to start as an appraiser trainee and go through a strict certification process that includes hundreds of hours of on-the-job experience. The work is still worth it. Independent appraisers work for themselves, and the more experienced ones can make as much as $100,000 per year.
Photographs of homes
Real estate photography is a profitable business, whether you’re a professional photographer looking for a niche or a hobbyist who wants to go pro. It is thought that homes with good photos sell 30% faster, making photography a useful tool for both sellers and real estate agents. The best way to get into this field of photography is to have an impressive portfolio that shows you know how it works and to network with as many important people in your local real estate market as you can.
To get the best photos, you’ll need good equipment, like a camera, a wide-angle lens, and a tripod, at the very least. To make your photos look their best, you’ll also need good software for editing them.
Short-term rentals
If you have enough money to buy a property in a popular area, you could make a lot of money by renting it out for short periods of time. In a world after a pandemic, rentals are popular with a wide range of people, especially vacationers, workers who can work from anywhere, and homeowners who need a temporary place to live while their own home is being fixed. And the need will only increase. People who do well in the short-term rental market have properties that look nice, are always clean, and offer customer service similar to what a concierge would do.
You don’t have to live close to the property, but you do need to be a very responsive host and have good relationships with local maintenance and repair companies. You can use platforms like Airbnb and Vrbo to help you market your rental, or you can use other short-term rental management tools that are made just for that purpose.
Real estate app development
Getting a sale done faster is possible with apps made for individual brokers. 68 percent of people who buy homes use mobile apps, which shows that they are a very useful tool that is likely to become more popular. If you are a skilled app developer who knows about user experience and content strategy and is looking for a fun niche, you might want to think about the real estate industry.
Communication and customer service are the most important parts of a broker-client relationship because they help build confidence, trust, respect, and success between the two parties. Giving these two important people in the real estate game a place to talk to each other is very helpful. These apps can share information about listings, facts, and statistics about neighborhoods, schools, and other places of interest, as well as documents and important two-way notifications. If you think the real estate business is interesting, there are many app ideas to think about as you decide who you want to reach with your tech skills.
Selling a lot of real estate at once
You want to invest in real estate, but you don’t have enough money. You still have some good options, and one of them is to think about wholesaling. It costs a lot less than flipping houses, and all you have to do is sign a contract on a property, which is usually in bad shape and worth less than the market value. Then you sell the contract to someone else for more money and keep the difference.
It’s a quick way to sell a house without having to buy it outright or spend a lot of money fixing it up. Building a list of interested sellers and buyers is a key part of your success. So that you don’t have any financial risk, you need a steady stream of properties for sale and people who are ready to take over the contract before it closes.
service that cleans homes and businesses.
People thought that the average American spent six hours a week cleaning their homes before the pandemic. People have never been more interested in making places cleaner, safer, and more sanitary than they are now because of COVID. Since people have gone back to work and the housing market has picked up, there has never been a greater need for commercial and home cleaning services. The world market for household cleaning products is expected to reach $40 billion by 2025. And commercial contract cleaning services were worth $292.6 billion around the world in 2019, with a CAGR growth rate of 6.1% expected until 2027.
Also on the rise are niche and specialty cleaning services like carpet cleaning, cleaning out foreclosed homes, and deep cleaning before moving in. As consumers continue to place a high value on caring about the environment, you might want to think about a green approach to products and processes that will appeal to home and business owners who care about the environment and their health.
The company that cleans up after dead people
Most of the time, an estate clean-out company does the hard work of getting rid of or getting rid of all of a loved one’s things. They also help people who are moving out of their homes and need to fix them up so they can rent or sell them. It is a business that requires a lot of care and knowledge about how to sort, value, and handle valuable things like antiques and collectibles.
Most of the time, once a client has gone through all the things they want you to remove and haul away, you can resell or donate any furniture, home goods, clothes, or other items that are left over. Some people might need help getting an estate sale set up and running. Still, some people might need help cataloging items and working with appraisers. For this part of the real estate business, you need to be creative and know a lot about a certain niche. This way, you can help people who really need your knowledge. In a market with a lot of competitors, this will help you stand out.
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