Is it still possible in 2019 to make money with real estate? The answer is simple: absolutely yes! Despite all the changes in recent years, making money with houses is still possible, and with this article we explain 5 methods to do so.
It is not necessary to already be a property owner to ensure a quick profit: the real estate market has many facets that cannot be found in other investments (such as buying and selling shares or investing in a business).
Furthermore, it is possible to follow multiple paths: you can choose whether to guarantee a constant income through the rent, invest a capital in the renovation and then sell the property at a higher price, or even identify houses at auction to resell them at rates. competitive on the market.
The latter is a type that is gaining momentum in the last period, actually based on a very well structured practice to earn with real estate: I buy and sell the house in a short time, applying a higher price than that of purchase. Let’s start our analysis starting from this modality.
1. Buying properties at auction to resell them
This is a great way to earn by investing relatively low amounts compared to the current value of the properties; in this case it is necessary to keep an eye on the auctions held by the various courts of the area, especially the bankruptcy ones. Due to the need to capitalize on a property seized in the face of bankruptcy, the courts indicate auctions with a high frequency (depending on the area).
In this scenario there is obviously a need to carefully study the object of the auction, carefully viewing it before proceeding with the bids; moreover, it is useful to establish in advance a maximum ceiling beyond which you no longer want to offer, in order to rationalize the purchase as much as possible.
To consult all the properties at auction, we advise you to consult the website of the Ministry of Justice, where you can find the list of sites where you can scroll through the various offers of judicial auctions.
2. Increase the value of a property to be able to resell it
This second point can be applied both if you already own a property, and if you want to make the capital invested more profitable. The principle on which it is based is very simple: I restructure and make a profit, provided that the property in question is in the conditions to ensure an adequate return on the capital invested.
However, restructuring is not necessarily the only way to increase the value of a property, or at least not restructuring in its most classical meaning; Beyond the structural interventions that may be more or less necessary (plumbing, electrical system, etc.), a revisiting of the spaces or a renovation of the most lived-in rooms can guarantee an excellent result with a limited expense.
For example, we refer to renovating spaces in a more functional way, obtaining a more spacious environment instead of two cramped rooms or, vice versa, carefully dividing a space that is too large to obtain a second bathroom, a new bedroom or a laundry room.
Renewing only some rooms (such as the living room or kitchen) can play a very important role in the evaluation of the property: from the simple painting of the walls to the replacement of the fixtures, the solutions are many.
3. Information is power
A deep knowledge of one’s own territory can be that ace in the hole that allows you to earn with real estate with even limited capital. The greater the experience, the greater the potential: the territory is certainly the first fundamental point, especially if you know any projects in the pipeline aimed at reviewing the services of a particular area or neighborhood. The construction of a new school, for example, inevitably leads to an increase in the value of the surrounding buildings.
Secondly, it is advisable to be well informed on the real estate market, in particular on the evolution of prices and expectations in the coming periods. In this regard, it is necessary to dedicate part of one’s time to thoroughly investigate the characteristics of the city or country where the house is located; understand if the quantity of properties is increasing or decreasing, find out the reasons for this trend, investigate if you are going to buy or rent more.
4. Making money with real estate without money, how to do it?
We mentioned earlier the difference in potential on an investment in the real estate market rather than the financial one, and here a very important player comes into play: banks.
Since the brick still has a good reputation, banks will be more likely to lend money to buy a house. Try to think that you want to ask for a loan from the bank to buy shares: it will soon be possible for the employee not to laugh at you!
The story, on the other hand, is very different when it comes to a house: the support of the bank can therefore give you the opportunity to invest in real estate without money, or in any case with a very low capital. Given the potential gain that a property can give, it will not be a problem to repay the interest that will be required, and within a few years it will be possible to obtain a return that no other investment can give you.
5. Make use of your effective communication skills
The last method is based on a maxim valid for any market: make the most of communication! Specifically in our market, to earn with real estate there is a very effective practice that takes the name of Home staging: in essence it is a question of staging the house, putting it on stage, in front of the potential landlord, attracting his attention. and arousing in him those emotions and those shivers that can push him to close the deal.
In general, however, it is a question of having the requisites to be a good real estate agent: listening to the needs of those who buy and meeting their needs as much as possible; establish a good relationship with the counterpart; be serious, professional and competent.
There are many ways to enter the real estate market. Do you want to know them all? Contact us without obligation by filling out the appropriate form!