Starting a property investment business is a great idea for 2016. The property market is good right now; it’s the perfect time to invest. If you do want to start this business, then you should know how to make money. Here are three ways you can do just that:
Start A Timeshare
Timeshares are often seen as quite dodgy things, but they’re legitimate business ventures. All you’re doing is investing in a property and then letting other people invest in it and share their time in it every year. If you do things correctly, you’ll find yourself earning a lot of money through timeshares. The key is finding the right people to approach with your proposition. Like I said, timeshares have been given a bad reputation because of a few ones that were scams. So, people are a little afraid of them if they haven’t had any experience with one before. If you can, try and get your hands on some timeshare owner leads. Your chances of success are much higher if you’re trying to sell to people that already own timeshares. They’ll trust the system and be far more inclined to put their money into another one.
Another way your property investment company can make money is by a thing called buy-to-let. This phrase refers to purchasing a property with the intention to rent it out. It’s a highly popular method of making money via property investments. You can start with just one house, and then expand into more and more properties. Some people will invest in a large house, and then convert it into a few flats which they’ll rent out. The benefit of a money making method like this is that you get a constant cash flow. Each month you’ll receive rental payments from all of your tenants, so there’s always cash coming back into the company. The only downside of buy-to-let is that you’re responsible for all the properties you rent out. So, you’ll have to answer any tenant queries or deal with any issues that occur. It’s a tiny bit annoying, but the financial rewards more than makeup for the effort you put in.
By far the most common way property investment businesses make money is by flipping. This is where you invest in a property and then sell it for a profit. How can you do this? By surveying the property and adding value to it in any way possible. This can mean paying to renovate the interior design, or fixing any problems with the home. The idea is that you make cost-effective home improvements which boost the value up considerably. It’s important that you don’t go overboard with the improvements, or you won’t have much of a gap to turn a profit. In this money making scenario, you won’t be looking at new or expensive houses; you want ones with room to improve and sell for more money.
Your property investment company can either use all of these methods or specialise in just one. Personally, I’d specialise in one to start, then branch out into other areas when the cash is coming in thick and fast.