With the real estate industry now booming, many people are eager to enter this business to get their share of the gold rush. Real estate is such a huge industry that there are a lot ways to make a profit, however, not all of them is suitable to everyone. You must know what is the most promising niche for your resources and capabilities in order to succeed.
To guide you on what aspect of real estate to focus on, it may help you to study some of the basic real estate sectors below to see what suits your situation:
• Real Estate Marketing. For those with little or no capital this is the best way to enter the industry if you love selling. Selling real estate is one of the most financially fulfilling enterprise if you have the patience and determination for commissions can be very huge. Note, however, that those who plan to sell real estate must be licensed by the PRC either as a real estate sales person or a real estate broker. A real estate sales person can only sell if under the supervision of a real estate broker. While there a number of ways to categorize the types of real estate you can focus on, the biggest difference is between project selling and brokerage. In project selling you will be selling properties that belong to a real estate company like a subdivision. On the other hand, in real estate brokerage you usually will be selling the properties of individuals or corporation not in the business of real estate. For beginners and even for many veterans, it is preferable to go into project selling because you do not have to deal with so many sellers. In project selling too there are already established procedures to facilitate transactions. You do not have to worry about how to draft documents like deed of sales and the legal and registration procedures since the real estate company generally takes care of those things. However, real estate brokerage does have its advantages. There is a higher chance of getting a large commission and you have the chance to set up your own real estate marketing company.
• Buy and Sell Real Estate Properties. For those with substantial capital this may prove to be a faster option to wealth. The reason for this is that since you will own the property you can have a higher profit margin. One of the key factors for success in this business is to be able to acquire property at low prices and to sell them quickly. You need to have excellent negotiating skills to buy properties at a low price. Also, you must have the patience to look over countless properties to discover the best buy. Eventually you may grow to become a full pledged real estate developer.
• Property Rentals. People who with large capital and are not in a hurry recover their money can invest in income property. There are two main types of income generating properties, residential and commercial. While investing in residential property is often less expensive, there is a risk of new laws that will affect your revenue like the current rent control law. Ejectment of non-paying tenants is also a problem that must be factored in your computations. In both residential and commercial properties, you must have good property management to preserve the value of your property and to retain desirable tenants.
Real estate is the foundation of wealth in our country. Still, there are many things you must know to improve your chances. To know more about the business, BusinessCoach, Inc., a leading business seminar provider, conducts three excellent seminars on this: Real Estate Marketing, How to Buy and Sell Real Estate Properties, and Starting a Property Rental Business. You may contact them at 727-5628, 727-8860, 0915-205-0133 or visit their website www.businesscoachphil.com for details.