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If you’re someone that loves buying houses, fixing them up and decorating, and watching the value of your house soar, then you’ve probably thought about moving into the real estate industry at some point or another. While others may say to you that there is a difference between fixing your own home up and then doing it as a business or on a commercial scale, you really do have to see the difference as just a scale thing.
Yes, there is a lot more thought and planning that goes into it. However, you will find that actually, lots of what you’re doing is the same – just as a business rather than for your own personal gain.
So why make the move into real estate?
We’re not necessarily talking about setting up your own realtors, but instead flipping houses or moving into development commercially. Because if you know that you’re good at it, and you find yourself making a lot of money when you’re working on your own properties, especially if you’ve been doing it for a few years, then why not make the move?
However, if this is something that sounds appealing to you, you are still going to want to make sure that it’s 100% a right fit. This means thinking about it from all angles. So that’s what we’re going to do. Here are some of the biggest considerations that you’re going to want to make if you’re thinking of moving into real estate development or flipping houses full-time.
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Researching The Market
First of all, you’re going to want to start out by doing some research. Right now, you may be skilled at dressing up a property and adding value to it, but if you’re going to do it for business, it helps to get to know the market a little more. When you research the property market, you’ll get to know what kind of houses sell best, where you can buy for cheap, and what kind of environment you’re dealing with now.
Having The Funds Available
Next, you need money. Because it’s not enough to just want to be able to do this as a career or launch your own business. You actually need the money to be able to do it. It can be quite costly to start buying houses, and to be able to wait months to see any kind of profit. So it’s important that you only go into this when you know you have the money to see it through.
Having The Right Contacts
From here, it’s also helpful to have contacts. If you’ve spent a lot of time doing up properties in the past, then you’ve hopefully already made the contacts you need. Because when you’re looking to fix up houses, you need reliable tradesmen to help you. Starting out with people that you’re unsure of may affect your success, so it’s always good to have the right contacts.
Knowing Where To Find The Land
Now we’re going to get down to some of the more technical aspects of making this work, starting with building property. If you’re interested in building, rather than flipping, then it’s important to know where to find land. Buying land and building is a great way to make a lot of profit commercially. But you do need to get the land at the right price, and secure a good location, so be sure to do your research in this area too.
Buying Property At The Right Prices
Next, you’re also going to want to make sure that you buy property at the right prices too. When it comes to flipping houses, your profit can often be determined by how much you’re buying for. So make sure that you’ve budgeting properly and estimated your potential profit before you purchase.
Sourcing The Right Materials
A huge part of both the building and fixing up process is construction and improvements. So not only do you want the right team behind you, you’ll need to be able to find the right materials. This means you should do your research into what you need, because you can find additional details on some options online. Then, you’ll be able to get the best quality end product for the right price.
Creating The Right Finish
At the same time, just like you don’t always want to scrimp on the quality of your materials, you will want to work for the right finish too. Depending on the market that you’re targeting and the standard that you’re working too, a high-spec finish may be what you need. So it’s important that you keep your end customer in mind and work to create the right finish for them, not you.
Selling At The Right Price
When it comes to selling, you’re going to want to make sure that you don’t rush into this. If you need to wait awhile to get the best profit, then do it. If you’re going to make money out of this, it’s always important to sell at the right price, and biding your time is often a huge part of that.
Considering Rental Value
Based on the last point and depending on what your goals are, you may also want to consider a rental investment. When you buy rental property, or you decide to keep a property to let out rather than sell right away, you’ll want to make sure that you still have enough profit in the project. This means factoring in any running costs, maintenance costs, and depreciation too.
Considering Commercial Real Estate
Finally, before you make any firm decisions on what you’re going to do here, you may also want to think about going down the commercial route. Buying, building, selling, and renting out commercial premises can have a lot of potential. Whether this is something that you do right away, or after you’ve found your feet in flipping houses and developing for business in the residential sector first, commercial real estate can be a great investment.