But do Africans know the proven ways to make money in the real estate sector? Below are some proven real estate money-making strategies that will help you generate profits. These strategies were culled from several reliable sources, including Investopedia.
1. Long-term Residential rentals
A report by Investopedia shows that residential rentals are one of the fastest ways to make money in real estate. With the fast-rising population in Africa, there is always a need for shelter. Africans can benefit from real estate with residential rentals in safe neighborhoods with good schools and access to water and public transit. People want to walk freely and interact with the community without security risks, making a safe location ideal for long-term residential rentals.
2. Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) allow investors to earn rewards without holding physical property. REITs offer diversity opportunities to investors, primarily in the market niches. Africans can buy and sell real estate investment trusts in the open market for rewards.
According to Markets Study Guide, REITs “pool in the money collected from a lot of investors. Then they use money from this pool to invest long term in properties. However, the individual investor need not be in for a long term investment.”
The American Apartment Owners Association defined contract flipping as transferring the right to purchase a property to another buyer. The process involves signing the agreement of a property for sale and flipping the contract to a new buyer. Africans can make money with contract flipping by bringing buyers and sellers together.
Available information on Fortune Builders show that contract flipping is a great way for new investors to start real estate. New African investors can act as an intermediary between property owners and buyers for rewarding opportunities.
4. Commercial real estate
Investopedia describes commercial real estate as properties used for business purposes to generate income. Most commercial real estate developers add value to properties through renovations and upgrades for the purpose of increasing profit margins.
Creative Africans can update and modernize a property to earn a fortune in real estate. If you can identify property areas that require value, consider commercial real estate.
There are immense opportunities in the real estate market, primarily through lease options. Many investors earn rewards in real estate without significant capital with lease options.