If you’re like many people, the idea of investing in the California real estate market is an exciting prospect. However, it’s also a frightening prospect. How do you get started? What are your best long-term options or short-term money makers?
At Berkshire Hathaway HomeServices we work tirelessly to help our clients buy and sell property. Keep reading for four ideas on how you can make money in the California real estate market and then contact us at (310) 373-0021 so we can help you get started.
1. Invest in up and coming areas
Real estate appreciation is one of the most popular ways to invest in real estate. It refers to buying a property and then letting it increase in value. This can be a smart way to make money but it takes some luck and a lot of research. It is often the case that by the time the public knows an area’s real estate values are skyrocketing, investors have already scooped up the cheap properties.
Another option that falls under this category is flipping houses. For this to work, you need enough capital to buy a home and pay for significant upgrades – but the potential for profit is huge. You begin by buying a property in a great location but that is in disrepair. You purchase it as-is, make changes to improve the resale value, and then sell for a tidy profit.
2. Rental properties
Also known as cash-flow income, rental properties are a great potential option to make money on real estate. Options include buying an entire rental building, buying an office building and renting to commercial tenants, buying a home to rent to an individual, or buying a condo. In some areas, you can buy a home and immediately rent it to make more money than your mortgage payment is. Others buy duplexes, rent out half, and have their mortgage payment covered by their tenant’s rent checks.
3. Get involved in the real estate industry
You do not have to buy and sell or rent property to make money in the real estate industry. Another option is to get involved as a real estate broker and make a commission on properties that are bought and sold by your clients. This does require passing a test and maintaining a professional license and it can be a challenge to get clients. Other options include property management, staging, and other real-estate adjacent services.
4. Ancillary real estate investment income
If you already have a real estate investment then ancillary real estate investment income can be a huge bonus. It involves things like adding vending machines in a commercial building you own, or laundry facilities that you charge to use. These are essentially small businesses within the properties you own.
If you are ready to buy or sell a property then we urge you to contact Berkshire Hathaway HomeServices at (310) 373-0021 now. We can help you find just what you are looking for.