Entrepreneurship is becoming a trend in India, so much that it’s a running thought in every young Indian mind. From college grads to industry professionals, almost every individual is looking to build on their ideas and nurture them into a multi-million-dollar enterprise.
While there are plenty of ways to make money as an entrepreneur, being a real estate business owner is something a vast majority of people are comfortable with.
If you are playing with the idea of becoming a real estate entrepreneur, here is a guide that can help you in the process.
Identify A Niche
Real estate is one of the biggest sector in the country. Having a beginner’s idea to make it in real estate doesn’t cut it. You will need to find specific fields you are going to build your strategy on.
For starters, there are plenty of ways you can make money through real estate, all of which cater to a different audience.
⦁ Buying/selling residential property
⦁ Owning/renting residential property
⦁ Buying old property and refurbishing them with a view to sell them at a higher price.
⦁ Owning/renting commercial property
⦁ Investing in commercial real estate
⦁ Investing in securities like REITs and municipal bonds
These are just a few ideas that are specific to real estate. There are a number of potential real estate goldmines that are waiting to be extracted.
For example, take the case of Zenify, a rental property management firm, which helps people find flats for rent in Bangalore. Apart from this, the firm, headquartered in Bangalore, also offers rental management and tenancy management and is thereby improving the standards of thousands of Bangaloreans.
⦁ Determine The ROI
In business terms, ROI is known as return on investment, which is basically the money you make once you have removed all the operating costs.
ROI = (Gain from investment – Cost investment)/Cost of investment
If you find that the ROI is relatively negligible, it means that the idea cannot be profitable. On the other hand, if the ROI is higher it means the business model is a successful and can be scaled to a much larger extent.
⦁ Research and Develop Your Niche Product
Like the example of Zenify provided a little earlier, you will need to come up with a well-rounded product that is likely to compel the general population to using your service. But before doing that, you will need to do extensive ground-level research to find out if there are any major players in the field you are considering.
If there is, you will either need to come with a sound strategy to top their business, or refrain from it. If the research proves to the contrary, you will again need to build a top notch product and use all your resources to market it to the best of your ability.
Challenges Faced by Real Estate Entrepreneurs
Like every business owner, real estate entrepreneurs too face a number of challenges. Here are some of them.
⦁ Lack of Funding
Getting adequate funding for a real estate business is one of the hardest and the toughest challenges prospective businesses face.
⦁ Less Options
Even if you find funding, there’s a chance that you will come to know that finding properties that can get you the right ROI is extremely hard.
Real estate businessmen need to be extremely tenacious as the path you are trying to tread has already been tread by a number of people before. Nevertheless, if you find the right idea, you can still make a successful business out of it.