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15 Proven Real Estate Business Models to Launch in 2024

The stock market might crash. Inflation might cripple the value of the dollar. And exotic collectibles might suddenly lose their appeal.

But people will always need a place to live.

That is what makes real estate such a great investment.

The return ebbs and flows like every other investment, but you never have to question the integrity of the assets themselves. The dollar is only valuable because our government says it’s valuable. Real estate is inherently valuable.

But what real estate business model should you use? And how do you get started?

Here are 15 proven real estate business models to launch this year.

1. Wholesaling

What is it?

In a nutshell, wholesaling is the process of finding deeply discounted properties and then assigning the contract to another investor or cash buyer for a fee (called an assignment fee). It’s common to make between $5,000 to $15,000 per deal as a wholesaler.

You find someone who is motivated to sell their home. This could be because they are behind on taxes, need to relocate for a job, or are going through a divorce.

You then enter into a contract with the seller and find a buyer who is willing to pay more than the purchase agreement (that’s your profit).

The greatest benefit of wholesaling is you don’t have to actually buy real estate or have much upfront capital. Marketing to find deals will be your only upfront cost (such as data and mailers).

How to get started

Check out the video below!

2. Virtual Wholesaling

What is it?

Virtual wholesaling is a new twist on the wholesaling business model. Rather than finding, contracting, and selling properties locally, you do it all online.

This could include using technology to find deals nationwide (or even internationally), as well as digital marketing to reach buyers.

The benefit of virtual wholesaling is you’re not limited to your geographical area. You can find and sell deals anywhere in the world without ever having to leave your home.

How to get started

Check out the video below!

3. Buy-and-Hold

What is it?

The buy-and-hold strategy is exactly what it sounds like. You buy an investment property and hold on to it for the long haul, usually 10 years or more.

During that time, you collect rent and let the tenants pay down the mortgage… all the while building equity and creating cash flow. When you eventually sell the property, hopefully, it will be worth more than what you paid for it (this is called appreciation).

Buy-and-hold real estate investing is great for building long-term wealth and increasing your net worth. It takes some time to create a hefty portfolio (depending on your access to private money, hard money, or other lenders). But over the long term, real estate has always appreciated in value.

How to get started

Check out the video below…

4. BRRRR

What is it?

The BRRRR method is an acronym for “buy, rehab, rent, refinance, repeat.”

It’s a strategy made popular by BiggerPockets founder Joshua Dorkin and has been used by countless investors to build wealth and create cash flow.

The BRRRR strategy starts with finding a deeply discounted property. This could be a fixer-upper, a vacant property, or even a distressed seller.

You then rehab the property to increase its value and make it appealing to tenants. Once it’s rented out, you refinance the property (hopefully at a lower interest rate) and pull out cash to buy more properties.

You repeat the process until you have a large portfolio of rental properties generating positive cash flow.

How to get started

Check out the video below!

5. Vacation Rentals

What is it?

The vacation rental business model is pretty self-explanatory. You buy or build a property in a desirable location and rent it out to travelers, usually through platforms like Airbnb or VRBO. This is similar to buy-and-hold but instead of renting to long-term tenants, you’re renting to vacationers.

Vacation rentals are great because you can make a lot of money in a short amount of time. And, if you’re strategic about it, you can even turn your vacation rental into a passive income stream by hiring a property manager.

How to get started

Check out the video below!

6. Fix-and-Flip

What is it?

This is probably the most famous form of real estate investing (thanks to HGTV). Fix-and-flip investing involves buying a property, fixing it up, and then selling it for a profit.

The key to fix-and-flip success is to buy low, make ONLY the necessary repairs, and sell at market value. This usually means finding properties that are in need of significant repairs but are being sold at a discounted price.

You’ll then need to factor in the cost of repairs, holding costs (such as interest on the loan and insurance), and selling costs (real estate commissions and closing costs).

If you do it right, you should be able to make a decent profit. But if you’re not careful, it’s easy to lose money on a fix-and-flip.

How to get started

Check out the video below!

7. Wholetailing

What is it?

Wholetailing is a combination of wholesaling and retailing.

The goal with wholetailing is to find deeply discounted properties that need very little work. You then make cosmetic repairs, put the property back on the market, and sell it at a higher price than you paid for it.

This strategy is similar to fix-and-flip but with wholetailing, you’re not focused on making lots of repairs or a huge profit. You’re more interested in selling the property quickly so you can move on to your next deal.

How to get started

Check out the video below!

8. Real Estate Agent

What is it?

Becoming a real estate agent is probably the most traditional way to get involved in the industry.

As a real estate agent, you’ll help people buy and sell properties. You’ll work with buyers to find the perfect home and then help them negotiate a fair price. You’ll also work with sellers to list their property, market it, and find the right buyer.

For your services, you’ll earn a commission (usually around 5-6% of the sale price).

Becoming a real estate agent is a great way to get started in the industry. It’s also a good way to make some extra money if you’re already an investor.

How to get started

Check out the video below!

9. Real Estate Broker

What is it?

A real estate broker is similar to a real estate agent but with a few key differences.

First, real estate agents can only work under the supervision of a broker. Second, brokers are usually more experienced than agents and have taken additional courses. If you want to build your own business without working for someone else, then you might consider beoming a real estate broker.

How to get started

Check out the video below!

10. Passive Investor

What is it?

A passive investor is someone who invests in real estate but doesn’t actively manage the property.

There are a few ways to be a passive investor. One way is to invest in a REIT (real estate investment trust). A REIT is a company that owns and operates income-producing real estate (such as Fundrise).

Another way is to invest with a real estate investment agency or personally with a real estate investor who you know. You can expect to make a return on your investment that is able to compete with the stock market… but you won’t be actively involved in the property.

How to get started

Find someone who own properties and need investors. Ask them them how much return you can expect and what they’re minimum investment is.

Or keep it super simple by using an REIT like Fundrise.

11. Developer

What is it?

Developers are responsible for taking a piece of land and turning it into something that can be sold or leased.

Developers typically buy raw land, get the necessary permits, and then build homes, apartments, stores, or office buildings. They may also be responsible for selling or leasing the property once it’s completed.

Developing is a risky business and it’s best if you’re experienced… but it can be very profitable if everything goes according to plan.

How to get started

Check out the video below!

12. Land

What is it?

If you’re not interested in the development process, you can simply buy land for cheap and hold onto it until the value goes up.

Land is a finite resource so it’s always going to be in demand. And as the population continues to grow, the demand for land will only go up. You can buy cheap, sit on it, and sell high.

How to get started

13. Utility Space

What is it?

Another option is what we’re calling “utility space” — we’re talking about properties like parking garages, storage units, office spaces, and other useful hands-off spaces that people might use in their daily lives.

While these types of properties don’t have the potential to appreciate in value like a home or a piece of land, they can generate a lot of income (through rent) with very little effort on your part.

How to get started

Check out the video below!

 

14. FSBO Services

What is it?

FSBO stands for “For Sale By Owner” and it’s exactly what it sounds like.

There are a lot of people who want to sell their homes without using a real estate agent. And there are a lot of people who are happy to help them do it… for a fee.

If you have some experience in real estate, you can offer your services to FSBO sellers. You might help them list their homes, show the homes to potential buyers, or even negotiate the sale.

Since they’re not using a real estate agent, they’ll be happy to pay you a lower fee than they would an agent (usually a flat fee).

How to get started

Check out the video below for some inspiration!

15. Property Management

What is it?

If you don’t want to deal with the hassle of selling or leasing property, you can become a property manager.

As a property manager, you’ll be responsible for taking care of the day-to-day tasks associated with owning and operating income-producing real estate. This includes things like collecting rent, maintaining the property, and dealing with tenants.

Property management is a great way to get involved in real estate without having to invest a lot of money upfront. And it can be a very lucrative business if you do it right.

How to get started

Check out the video below!

Final Thoughts

Getting started as a real estate investor or agent is no easy task.

But allow me to share two quotes with you that I always remind myself of when I’m hesitating to do something that I know I should probably do. The first is this…

“The best time to plant a tree was 20 years ago. The second best time is today.”

In other words, you’ll always wish you had started earlier… which means the best time to start is right now. Yes, it’ll take time. But in 10 or 20 years, you’ll be glad you didn’t wait. Here’s the second quote…

“Never give up on a dream just because of the time it will take to accomplish it. The time will pass anyway.”

Life is here. And living it means doing stuff, some of which is scary, ambitious, and frightening.

But the time is going to pass anyway.

Might as well dive right in!