The real estate business, since way back, has always been a gold mine to those who know how it runs. Its rise in history is well noted since the days of the Lords and Serfs. Its rise since then has been breathtaking as many entrepreneurs have tapped into it and made millions. This is so because people will always be on the lookout to buy or rent houses that appeal to their taste.
The statistic speaks for itself. 3.7 million square feet of commercial land are already in use for real estate businesses as of 2019; and by 2030, it’s expected that the real estate market will hit $1 Trillion.
If you’ve ever considered staking your claim and breaking into the real estate business with ease, then I think this article will enlighten you on how to do just that without much stress.
The real estate market – just like every other big market – has different branches and niches you can delve into. Sometimes, you can even decide to merge two or more niches and see where they lead.
I’ve come up with 8 business ideas you can think of starting within the sphere of the real estate market.
1. Become a Real Estate Agent
Most people think that becoming a Real estate agent is as easy as eating a pie: get a listing, look for buyers, and earn your commission. Sorry to burst your bubble, being a real estate agent isn’t a walk in the park. There are many perks to becoming an agent.
But first, who is a real estate agent?
A Real estate agent is the main man who represents the buyer or seller of a real estate property. He’s a licensed agent working under a licensed broker to take charge of clients’ properties.
The first thing you need to tick off the prerequisite of becoming an agent is getting licensed. There are practically 6 processes you need to pass through before you become an agent.
The first thing is to research your state’s requirements. Requirements range from age, education requirements, pre, and post-licensing conditions, Exams and exams eligibility, etc.
The second step after your research is to take a pre-licensing course from an accredited real estate licensing school. The number of coursework hours varies in each state. After that, you will take the licensing exam. Also, each state has its regulations binding the license examination.
The fourth thing to do after you might have passed the examination is to activate your real estate agent license. You’ll submit all necessary documents, and then wait for the state to mail your license certificate to you.
After becoming a licensed agent, the next step is to consider becoming a Realtor. Although used synonymously, a Realtor is different from an agent. All realtors are agents but not vice versa. To become a Realtor, you need to become a member of the National Association of Realtors (NAR).
The last thing on the list of becoming an agent is to join a brokerage. At this stage, you need to do your research about the best broker that resonates with your work ethic. You have the upper hand because you have the opportunity to interview as many brokerage companies as you like. You can download my 60 Questions To Ask A Broker When Interviewing guide to help you as you go.
Pros On Becoming a Real Estate Agent
- You will ultimately become your own boss and call the shots.
- Your income gets unlimited as you go.
- You decide your working hours.
- You have the potential of growing big by starting a brokerage.
Cons On Becoming a Real Estate Agent
- It takes a lot of process and paperwork.
- It takes time.
- Lack of proper time management could cause great havoc.
- Hard to get clients when starting.
- It’s stressful.
Read also: How Does A Person Become A Real estate Agent
2. Flip Properties
In a nutshell, to flip in real estate connotes two things: to revamp and to sell. So in essence, Property flipping is buying a damaged or distressed property, revamping and giving it a touch of modernity to sell it, often to a retail buyer.
Going into this business requires a lot of effort in finance and timing. Also, it’s not a business that extends its cash flow continuously; it only creates a large one-off profit on individual properties.
Pros Of Flipping Properties
- Ability to design a property to your taste having potential buyers in mind.
- It can be done either part-time or full-time.
- Faster return on money spent.
- You can make bigger profits
Cons Of Flipping Properties
- It’s so expensive.
- It’s time-consuming.
- It incurs a lot of taxes.
- Income is not earned passively.
Related article: How To Get More Done In Your Real Estate Business
3. Become a Landlord
Almost everyone knows the benefits attached to becoming a landlord. When you have properties that bring rent to you constantly, then you are indeed a landlord. For many though, becoming a landlord has become an easy door to gaining easy access to the real estate market.
As a landlord, you have two ways of making a huge income from your properties. The first is the cash flow you get constantly from rent. As the market increases in price, you continue to build your wealth by also increasing your rents.
Secondly, as the years go by, so is the constant appreciation of your properties. If you decide to sell off your properties, then you will realize massive profits.
It’s up to you to either go full-time or part-time. If you choose to go into it fully, then I suggest you set up an office for your convenience, or you can decide to work from home. But if you have other things keeping you busy and you want to run your rental business part-time, then it’s advisable to use the hand of a property management company.
Pros Of Becoming a Landlord
- It brings a continual flow of income.
- It helps reduce tax.
- It increases equity.
- It brings security that comes with the monthly rent.
- You decide whatever you want with your property.
Cons Of Becoming a Landlord
- It takes a longer amount of time to appreciate
- It incurs a lot of taxes even with its initial reduction
- It incurs several expenses like repair and maintenance, employee cost, certificates, taxes, etc.
- Its legal issues are tasking
- A property could be vacant. And this goes without neglecting the property expenses and financial costs.
Read also: The First Year of a Real Estate Agent: What You Should Expect
4. Become A Property Manager
Becoming a property manager is one of the low-hanging fruit business ideas in the real estate market. This is when you decide to help property owners manage their property. Managing a property connotes maintaining, upkeeping, and collecting of rents for property owners in exchange for an agreed percentage of the rent.
Venturing into property management requires you to work full time. It’s advisable to have a dedicated business location with lots of storage. This would come in handy when you begin gathering maintenance materials like paints, drywall, cleaning supplies, and other materials needed for the properties you manage.
Also, You should consider hiring subcontractors who do all the ‘dirty jobs’ like plumbing, painting, electrical works, lawn maintenance, and others.
Pros Of Managing Properties
- It brings a steady flow of income
- It doesn’t require huge capital as you can start small
- It doesn’t require owning a property.
Cons Of Managing Properties
- It’s time-consuming
- It gets expensive as you expand
- It requires finding tenants
Concisely, to bird dog is to watch closely, or to seek out. So when you bird dog in real estate, you seek properties for investors before they get listed.
It’s a relatively new niche curated by real estate professionals. You can decide to work from home as mostly done by freelancers.
But the caveat is that it’s not as easy as people make it seem. Getting unlisted properties to investors requires a huge deal of unprecedented information, contacts, and extensive knowledge of the market. This is because investors won’t pay for information about already listed properties.
The idea is simple: find closely-guarded properties no one has discovered yet and pass them on to investors. So simple but tricky at the same time.
Pros Of Bird-dogging
- It’s not as saturated as other real estate niches.
- It’s easy to start. Just have loads of first-hand information and you can get kicking.
- Doesn’t require huge capital
- You mostly work from home
Cons Of Bird-dogging
- You could easily fall victim to a scam.
- It takes huge research to pull off.
- It’s tasking and enervating.
6. Taking Photographs and Video Tours Of Properties
Every business has its selling point, and the selling point of a property getting off the market fast is capturing such property in a good-looking shape with exquisite pictures and sometimes videos.
When a property gets shown to the world in its entirety, not just blandly, but shown in colorful and careful editing in its true form, it gets sold fast.
So when you come in as a photographer and video maker of real estate properties, you need to have all the necessary tools that set you apart from the mediocre. You will need to invest in sophisticated cameras, high-quality lighting equipment, and refined editing platforms that will ensure your work shows the property in an exquisite state.
In larger properties, drone photography gets the nod over all other types because it captures everything that makes up such properties.
Taking photographs also allows you to work from home as a large part of the editing will be done from home. But largely, your hours are determined by the number of houses and size you have to shoot in a day. When a house is larger, you spend more time on it, and that means more money.
Pros Of Photography And Video Making
- Doesn’t require huge capital for a start.
- It’s flexible.
- You become an important factor that either gets the properties sold or not.
- You have control of every situation.
- If successful, its reward is huge.
Cons Of Photography And Video Making
- It’s time-consuming
- It gets expensive going forward
- It’s tiring and neck-breaking.
7. Become a Developer
One of the most creative, interesting, and profitable niches of the real estate industry is property development. Real estate developers acquire raw lands, develop these lands into real estate buildings that they either sell, lease or rent.
Developers are master planners, and to become one of them, you have to be savvy with both human and material resources because these two will help you reach the top quickly.
In fact, developers are one of the key forces that determine the prices of properties in real estate. Although risky, you can surely make it big after you’ve done your homework with lots of risk calculations.
Pros Of Property Development
- High return on investment.
- It provides greater stability.
- It brings about investment leverage.
Cons Of Property Development
- It takes time for the completion of projects
- It needs huge capital to start up
- It could lead to a delay in completing the projects
8. Combine Real Estate Niches
The saying ‘Jack of all trades, master of none doesn’t really apply in real estate. Why? Because the majority of those in real estate provide two or more services for their clients.
Nothing stops you from going all out with two or more niches. So far you have what it takes to succeed. Imagine being a property manager and at the same time offering photography services. That would save you and your clients extra time and effort. Also, You get an extra reward for that.
As an agent, you can decide to flip Properties on the side, manage properties for clients, and sometimes bird dog for investors. Also, many developers choose to flip properties and build a rental business just to have multiple streams of income.
But one important thing you should be wary of is your clients’ interest. Meaning, you have to do whatever is in their best interest. Don’t shortchange them by not giving your best because of your multiple businesses.
If you can maintain balance and professionalism in each niche, then you are good to go.
Pros Of Combining Multiple Niches
- It yields multiple streams of income
- You will be highly revered.
- It saves your clients the trouble of seeking capable hands.
Cons Of Combining Multiple Niches
- It’s tasking
- Huge capital is needed to startup
- It takes a hard time tracking what you do.
The real estate business is a lucrative business where you can immediately pitch your tent, spread your mat, and lay the dishes for a good meal.
Whichever niche you decide to go for, make sure you have the knowledge and necessary certifications that come with it. Then, endeavor to give your clients the best service ever. From there, you start growing in leaps and bounds.