When it comes to real estate, people often think of huge amounts of capital to invest in this market, but in reality you still have real estate business ideas You don’t need a lot of capital to start realizing your billion-dollar business dream. Let’s find out together.
Borrowing from a bank for real estate business, accommodation
Not everyone has the blood to take a loan for a business, but if you are sure about the real estate idea you are cherishing, you can confidently develop it. Certainly here is not based on hunches, but needs actual market survey. For example, you need to borrow 100 million to rent a 4-storey house, including 5 bedrooms with full living facilities left unused by the owner. And we need to take into account these points:
- – Rent a house to pay every 6 months. For example, if your house rents 7 million/month, 6 months is 42 million VND
- – Survey the rental price of accommodation in that area to find the appropriate rental price. For example, the average room price is 2.5 million/month. So the total 1 month you get max is 12.5 million. However, it should be taken into account that the room is not yet occupied.
- – Bank interest to pay monthly. For example, the interest is 12% per year, then every year you have to pay 12 million interest. Calculated to pay interest 1 million per month.
- – Possible costs of risk. For example, repairing damage, unoccupied rooms, reduced room rates…
After accounting for the amounts and risks, you can calculate how long it will take for this real estate business to make a profit for you.
Regarding the loan procedure, if you go directly to the bank, there will be a staff member of the credit department to advise and guide you. Usually, there will be a bank employee on the “surveillance” of the family, their purpose is to check if your property can be owed if the case is at risk. If you want a quick procedure, just give him the procedure officer 5 hundred -1 million, the paperwork will be much faster for you.
With a real estate business idea thanks to a loan, what will you need to pay attention to?
Firstly, when you take out a loan, you just determine that it will take about 1-2 years for you to recover your capital and start making interest from the 3rd year. Remember to never spend all the money you have. Leave a certain amount of capital to prevent possible risks.
Second, the real estate business is very risky, but if you calculate well, and understand real estate, you will not be too worried about this.
According to advice from experienced people, real estate investors need to be able to identify projects with high profit potential, convenient locations suitable for the needs of many people.
Currently, there are many young people who are having a real estate business idea in the form of renting an entire house, or a suite of rooms from the owner, and then selling and subleasing it to those in need.
However, for your business to run smoothly, you should only choose new apartments (if they are too degraded, there will be few tenants), many self-contained rooms, and the landlord must give you all the rights. Good paperwork and contract.
In addition, you should also survey the rental demand in the area you are planning to invest. Wherever there are many universities or industrial parks and businesses operating, that place is the preeminent choice.
In addition, you must make a strict contract and manage customers (tenants) closely to avoid unexpected legal or financial problems, strictly manage electricity and water costs, avoid Losses cause damage to your investment budget. There have been many cases due to lack of good management, having encountered a situation where tenants “flare” money, equipment and property are degraded, damaged, but it is not clear who is responsible for compensation… as simple as that. Electricity, water, and internet costs can also cost you.
Real estate business ideas do not require a lot of capitalIf the case is to rent old real estate for sublease, it is necessary to identify whether the infrastructure is still good or has deteriorated. Many people often rent under long-term contracts, but do not specify the terms if the apartment is degraded but the cause is not damaged by the occupants, the lessee needs to repair … it is easy to have to spend money to repair, Otherwise, no one will want to rent your shabby apartment.
How is the real estate business?
Once you have rented a real estate apartment, you will again have a headache with the question of how to get tenants? Here are a few ways you can apply.
Real estate website design
If you have money, you can spend about 5 million to design a website about real estate. In this, there will be detailed pictures of each room, information about prices, accompanying utilities and benefits when customers rent…
Having a website you will have the advantage of asserting credibility, running ads, doing SEO … to attract interested people.
Do not ignore social networks, classifieds pages
Most of the students, or people in need, often go to the “Find a room” group on Facebook. So you also need to join these groups and post information about the real estate apartment you need to rent here. Remember to take beautiful photos and invest a little in content to attract more people.
Hard to post even on some free classifieds sites like Cho Good… a lot of people are interested and often come here to find the demand.
There are a lot of people who get rich from real estate business, but there are also many people who suffer losses because of it. Remember that when investing money in business, you need to be very serious, study the market carefully and carefully. If done well, even if it is a real estate business idea that does not require much capital, you can still generate a lot of profit.
