But you don’t want to worry too much, because you get stressed easily, and you don’t need to rush it. So you can use the “Buy and Hold” method.
Here’s some real estate 101: the goods gain value with the passing of time, so you can buy a property, wait some time, and then sell the property. Now you´ve earned money.
But let’s suppose that you’re someone who likes to meet a lot of people around the world, and you get tired of seeing the same faces for an extended period of time… so the Airbnb method is for you.
By the way, in case you have lived under a rock for the past 10 years, Airbnb is an app that lets you lease any spare rooms or houses, i.e., real estate, that you might have laying around.
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just want you to know that if you take some nice pics of your property, and post them in the app, people can go and rent it. It’s nice because you don’t need to wait for too long to earn money.
Do you want to hear other options? Do you like TV Shows? Like Home Improvement? Or Bob The Builder? Do you have some time and friends to repair old buildings and make them look awesome?
Ok, so look for an old and abandoned building in a good location and buy it, then seize all the things that you learned watching those TV Shows and call that friend who studied architecture and the other who is a civil engineer, then repair the whole structure… and voilá, you have an almost new building ready to make money. This method takes time and budget, but if you find a proper opportunity, take it.
But what happens when the building that you bought is in a high-traffic area, near an office center or a university, with a beautiful parking lot? Maybe that building can be a nice place for a store, a little restaurant, or something like that. So why not rent it for commercial purpose? You can ask for more money because the person who rents is earning money from that too.
Also, if that business who is renting your building is doing really well, you can just kick them out and run the business yourself.
The world is owned by the smart people, haha.
After this, you realized that you don’t want to spend time on Real Estate, just your money, you don’t want to get your hands dirty, and you found someone who is excellent in the business but doesn’t have money… so you can use the Real Estate Investment Trust” or REIT.
An REIT is a group of investors who put money together and buy sizeable real estate investments, then someone works on selling or renting the properties, and when that works, each investor gets a share of the profits.
This method is useful in case you trust theREIT and don’t want to risk too much. It’s a nice way to start in the real estate business. Some people in the industry prefer REITs because it’s easier than going to the bank… you know, bureaucracy.
But, what if you ran out of money? Did you buy that T-Rex costume and now you’re regretting it? Well, I have an option for you. You only need time, patience and an ability to bargain.
For The “wholesaling method” you need to find a seller who hasn’t placed his property on the market; then you go and find a buyer for that property… and then you get a fee. Voilà. Now you’re a wholesaler in a real estate business.
Ok, but regardless of which method you use, there are 3 musts that you have to have in mind if you want to make it here.
One: Research. Do it all the time, beyond what people say: check if the property is suitable for commercial purposes, if the neighborhood is ok, ask for more opinions… I mean, no one wants to live in a favela.
Two: Networks and REITS. Find people to work with, if you’re a businessman, find an architect and a civil engineer. If you’re an engineer, find a great salesman. In fewer words, create a team, or at least, people who can give you honest answers to your work questions. Just for work, if you need honest questions about your life, find a friend, or a psychologist. Or a dog.
Three: Focus on a location: No matter if you’re selling a penthouse for nothing, if it’s outside the city in the middle of nowhere and there is no electricity or internet there, you will find it hard to find a buyer… at least you can find a company who is shooting a horror movie.
So create your niche based on your locations, if you’re selling buildings on the beach, go for hotels and restaurantes… if that building is in a college town, make apartments for students.
But, if you actually go into the Forbes list, I will be grateful if you mention this channel.
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Here at Explainosphere, we like explaining things. As curious and eccentric as they may seem, we believe there is always someone, somewhere, trying to figure out how things work.
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