You probably already know there’s many ways to invest in real estate, from flipping houses to wholesaling, landlording and much more.
So when you’re just starting your real estate business, which strategy should you utilize?
One of them, all of them, or somewhere in between?
There may even be strategies that you’ve never heard of!
We get it: starting a real estate business can be tricky.
That’s why, in this article, we’ll break down some of the most awesome — that’s right, we said it!— real estate business ideas today to help you get started.
Why Start a Real Estate Business?
First things first: why start a real estate business in the first place?
Real estate is historically considered a profitable and stable business opportunity.
After all, everyone — including YOU — needs a place to call home!
If you’re new to real estate investing, you may think it’s all about buying and selling homes and paperwork. But there’s far more to it.
You can choose a real estate business idea based on your personality, such as weaving creativity into your business while letting others handle the paperwork.
Plus, a real estate business can yield tax benefits, cash flow, equity, and — what’s so relevant today — a hedge against inflation.
That being said, a real estate business does come with its downsides. Real estate is not a liquid investment, meaning that it can be difficult to get money out of a property you own … doing so may require you to sell it, which can take months — even years!
Owning a real estate business may involve repairs, maintenance, and other landlord duties, which can be costly financially and time consuming.
Now that we’ve broken down why start a real estate business, let’s get into the best real estate business ideas today!
Real Estate Business Ideas
#1: Manage Rental Properties
When you think about real estate business ideas, managing rental properties may have been first on your list.
Rental properties are an awesome source of passive income — producing monthly cash flow — although there’s still some maintenance required to keep it a successful business venture. You’ll have to manage the tenants, your property, and pay taxes.
Managing a rental property yourself can help you earn more monthly income, but be aware that this means you’ll be in charge of handling rent, marketing of your rental, screen tenants, conduct routine inspections, and ensure that the terms and conditions of your lease agreement are met.
You do have the opportunity to hand these responsibilities to a property manager, but it will come with a fee.
#2: Commercial Property Management
Commercial property management involves overseeing commercial and industrial facilities, communicating with tenants and stakeholders, as well as maintaining the property to ensure compliance with health and safety laws.
This is yet another profitable real estate business idea.
As with managing rental properties, commercial property management also involves property maintenance, requiring you to have a network of contractors that have proven reliable and dependable.
#3: Private Money Lender
Another real estate business idea is a private money lender.
Private money lenders serve as a source of capital — at the cost of interest — and can play a crucial role in other people’s real estate investing journey.
In many instances, for example house flipping, traditional loans can be difficult to obtain, which is where a private money lender comes in. Plus, a credit score isn’t required for this loan option!
By acting as a private money lender, you can not only earn money; you can help other real estate investors achieve their investing dreams.
#4: Bird Dog
If you’re looking for a real estate business idea but don’t want to own brick and mortar, being a bird dog is a great option.
Bird dogs in real estate are intelligence networks for real estate investors by helping real estate investors find hidden gem properties to invest in for a fee.
All this real estate business idea takes is transportation and motivation!
#5: House Flipping Business
That’s right, just like you see on TV!
A house flipping business is another real estate business idea. Not only can you experience the benefits of flipping and reselling a house at a higher price; it can be gratifying to fix up something broken down — and quite the adventure.
House flipping does carry added costs — and risks — which is why, if you choose this real estate business idea, it’s critical to ensure that you are educating yourself with house flipping best practices to ensure that you don’t lose any of your hard earned money on a given project.
#6: Home Staging Service
Staging a home — another awesome real estate business idea — means preparing it for a potential buyer.
You can redecorate the house, rearrange furniture, clean it, and generally make it look appealing to potential buyers.
Opening a home staging service allows you to partner with investors flipping houses, and you can be in charge of staging all the houses they flip.
The right connections here can mean tremendous success when doing home staging.
#7: Wholesaling
If you’re looking to start a real estate business but you don’t want to actually own a property, wholesaling may be best for you!
Wholesaling is a middle man (or woman) — it involves obtaining a contract, and then flipping that contract to a buyer who will pay more for the property.
Once the deal is complete, the wholesaler receives a percentage of the final sale.
The Bottom Line: Real Estate Business Ideas
There you have it: the most awesome real estate business ideas today!
From wholesaling to being a bird dog, staging homes and more, there’s many opportunities to start a business in the real estate industry.
Not only are these real estate business ideas profitable; they can be a fun experience, and most importantly, they can impact others for the better.
