There are thousands of businesses in the world. From dog groomers to luxury penthouse developers, to web designers and real estate brokers. When selecting a business to start, it is often tough to choose something that will be both enjoyable and profitable for the business owner. Because it has made more millionaires than any other business, real estate is one of the best and most lucrative businesses to start and so in this article we will be discussing five different real estate businesses you can start, which can and may get you Florida retirement community benefits.
5 Different Real Estate Businesses You Can Start
You might have gotten interested in this topic because of what we mentioned in the introduction. Yes, real estate has made more millionaires than any other business and this is because real estate is backed by real, solid product which can be land and the buildings on that land. Once you own a piece of real estate, you own everything in it and above it, which means that if you were to find a bunch of gold or oil on your property that made you rich you get to keep it and “finder’s keepers” will most definitely apply to you. So, what are the five businesses you can start in the real estate space:
- Becoming a broker or realtor
- Buying apartments
- Buying and holding single family houses
- Fix and flip
The first one is not really a business but is treated as one. Unless you study and get your own broker’s license, you will be working under a brokerage company as an agent. That company will take a piece of everything you make, but you get to treat the income as a sole proprietor or corporation. The second business is the biggest and most profitable, but also one that requires large amounts of capital to do successfully. Buying apartments gets you can check at the closing of three to five percent of purchase price of the property, simply for putting the deal together. It gives you monthly cashflow, appreciation through time, tax advantages, and the ability to re-finance in the future.
Buying and holding single family homes is like the small version of buying apartments because instead of buying one fifty unit apartment building, you’d have to purchase fifty individual homes. It can be lucrative but also tedious and risky because you don’t get all fifty homes under one roof. Fixing and flipping real estate are some of the most popular methods. In the fix and flip business, you purchase a property that needs work, fix it and put it back on the market while in wholesaling you get a property under contract and sell the contract to an end buyer/investor for a small fee anywhere from $1,000 to $25,000 depending on the size of the deal and the profit the investor will make.
In conclusion, in this article we discussed the topic of real estate and why it is one of the best methods for creating real wealth. There are many more businesses within the real estate sector that we didn’t list, but we did however list the top five most lucrative and popular businesses. If done correctly, any of those businesses can create a legacy that will affect the lives of your future grandchildren when they inherit a few apartment buildings or the family business.