What is real estate investment?
Real estate investment is any purchase of property that you intend to make a profit off of and not use for personal matters.
There are many ways people can make money off of a property besides just renting it. You can make money off of land in a variety of ways including renting the space for someone to use as storage, flipping and reselling the property, and even going as far as to rent the land to a company to put solar panels on. You have many different options to think about when you have excess property and there are several options that can bring in some big bucks.
I have a property that I am ready to make a profit off of, how do I start?
Making sure you have the funds is one of the most important starting places when you are trying to make a profit off of your property. Things can get very expensive very quickly in real estate and going into debt to finance this business is not ideal and should be avoided as best as you can. If there is something you can do without hiring someone else to do it for you such as painting or landscaping, do it on your own. Doing little things on your own and cutting out middlemen can save a lot of money when you are first starting out.
How do I attract renters?
There are a lot of things that can attract renters to a property and there are at least as many things that can deter people, as well. Establishing your target renter is crucial to maximizing your profits as well as decreasing your odds of having a problem renter. Once you know who you want to rent to, plan your property in a way that suits the renter. For example: it would be harder to rent a property to a college student when it is a 20 minute drive away from campus than it would be for a young family who works nearby.
I have a renter, now what?
Make sure they have appropriate funds to maintain rent payments and that they have some form of renter’s insurance in case of any damages. You can do this by requesting things such as pay stubs and getting coverage information from their insurance provider. Also, make sure you have a sound contract or lease for the renter to sign that clearly states the term length, price, and when payments are due. Also, have the contract include rules and expectations such as noise rules, pet limit, and other fees that you may want associated with your property.
At the end of the day, do not be afraid to Google a question or ask a more experienced owner for their advice - this business is very welcoming and people would be glad to help you. Be smart, maximize your profits, and have fun!