There are many more ways to profit off of real estate than you might realize. There’s money to be made by flipping homes and developing properties for sale, that’s for sure, but what if you want to build a more sustained income stream? Finding the opportunities to turn real estate into a business can help you do just that. Here are a few of the different opportunities that allow you turn that piece of land into a real gold mine.
It’s the most immediately obvious way to start earning an income from your property, at least for most people. But that doesn’t mean that it’s always the most profitable. Before making the decision to rent out your property, it’s worth considering if the area has the attributes to make it an attractive let to potential tenants. Young professionals and students are some of the most profitable and reliable rental markets out there, so choosing rental properties close to colleges and retail or industrial areas in a city can be a lot more profitable than trying to rent out a small suburban home far from either. Nowadays, there’s a trend of adding rental suites to existing homes, which can allow landlords to keep a closer eye on their property, too.
If you’re not too fond on the idea of relying on single tenants or single groups to help reliably provide you with income, then taking a turn into the hospitality industry might be more up your alley. Running a B&B is a much more traditional business approach to profiting from your property. Besides providing the property, you have to provide plenty of services that include more than just providing breakfast as shown at LittleHotelier.com. However, if it’s in the countryside, close to wedding venues, or in a tourist-friendly town, a B&B will see its fair share of customers. It just takes a little more work than some of the other investments mentioned here.
The Vacation Home
For many people, the idea of owning a second home is already on the cards. They want somewhere to retreat to, somewhere they can vacation without having to arrange accommodation, and perhaps even somewhere to retire to. But a vacation home can provide all of the above as well as an income-producing investment. The right vacation home is all about location. If you want it to be profitable, it needs to be near some particularly beautiful land, landmarks, or tourist centers. Managing a vacation home from afar can be tricky, too, so it may involve investing in services that help keep it well-maintained when you’re not there. To make up for the higher investment barrier, marketing and finding leads for your vacation home needs to become a priority.
The Nature Retreat
If you prefer getting a little more hands-on and don’t like the idea of leaving a vacation home empty or unsupervised for a large amount of time, perhaps you can create your own tourist attraction and retreat. Sites like RMABrokers.com make it a lot easier to find ranches and land suitable to be used for recreational, sports, and fishing retreats. While providing all the services expected of a hospitality industry, you can make extra profit by having land perfect for the outdoor activities that many vacation seekers will gladly pay for. Of course, you’re a lot more likely to profit off this particular investment if you have some interest of your own in the outdoor activities you’re trying to sell access to.
The Market Garden
If you prefer to profit from the property you live in, or you purchase land with a lot of fertile gardening space, you could stand to take advantage of a fast-growing market. There’s more demand for organic foods than ever, with many consumers willing to pay more for foods that haven’t been altered chemically in any way. Becoming a market gardener allows you to contribute to that market from your very own home. Whether you set up with a stall or pair up with a distributor or supermarket, you need to make sure that you can produce the volume of goods to make up for the amount of time spent doing it.
The Event Destination
Buying a property close to a landmark or some particularly beautiful sights attracts an entirely different kind of market. The wedding market is one of the most consistent, with several peak seasons throughout the year. It’s an industry that uses a lot of specific knowledge and marketing tactics, so it’s a good idea to spend time getting to know other venue owners, wedding planners, and so on. If you can find a picturesque or convenient location that doesn’t have too much competition as recommended at BookMoreBrides.com, you could create a business that becomes instantly highly coveted. Having a flair for design and some wiggle-room for brides and grooms to customize the venue can make it an even more attractive offer.
The Business Rental
It’s another buy-to-let proposition, but this time targeting a market that some would consider a lot more reliable. Buying an office block or a shopfront and renting it out to an established or growing business can be considerably more profitable than renting out a residential property. Some familiarity with the businesses you want to rent to is important because zoning laws will force you to choose a niche to rent to. Before purchasing any commercial property, ensure you confirm what type of zoning applies, from industrial to retail to restaurant to office. An eye for up-and-coming retail hubs and new businesses is crucial in snapping up properties that can start making you a high rental yield in a very short time-period.
None of the examples named above are passive incomes. If you want to turn a piece of real estate into your business, you have to be willing to put your time into it. In return, you get a greater share of the profits than you would in any job, and complete control over how you run your property.