Lumina Sessions: Tips on How to Earn Money in Real Estate

Are you searching for the best investment you can have for your future? Investing in a real estate property gives you the easiest way to earn money!

Let’s join Gisselle, our Marketing Officer from Lumina Valencia, as she discussed about the different tips on how to earn money in Real Estate for this week’s episode of Lumina Sessions.

Five Investment Tips to Earn Money from Real Estate Industry

Real estate is one of the best investments you can get into because it’s quite simple that you don’t have to be a genius in order to earn money in this industry. We collected these five (5) investment tips in order to help you out in earning money through your real estate property investment:

Tip #1. Know your target market.

The first thing you need to determine when you plan to earn money from your real estate investment is to know your target market.

A target market is a group of people or businesses who are most likely to use or purchase the goods or services offered by a business. Your real estate property should concentrate its marketing efforts on attracting these customers since they are more likely to be interested in or require the property’s services. For the most efficient and successful marketing strategy, you have to target these consumers. Trying to sell to everyone would be a waste of money and time.

Real estate properties in the vicinity of a two-mile radius or a certain zip code may discover that their most probable consumers are within that area. It is important to note that the geographic location of your target market is an important factor in determining your advertising strategy.

For example, if your target market are college students and you are planning to turn your property into a boarding house or apartment, then you have to look for properties near schools and universities.

Meanwhile, if your target market are professionals, then your real estate investment must be close to business hubs and centers.
Also, if your target market are business owners, you must search for communities or subdivisions that are near the commercial properties in the area.

Once that you have already identified your target market, other aspects to earn from your real estate investment will come easier for you.

Tip #2. Find growth areas.

Keep in mind that it is always an advantage for an investor to buy a real estate property that is convenient, accessible, and has a lined up for future developments—just like our more than 50 community projects available all over the country.
Convenient properties are those that are specifically designed for working people and their families and have all of the necessary conveniences. These dwellings, although being described as "a little abode," have enough utility space to double as an office, a virtual fitness area, an online school, and ample living space.

On the other hand, people claim that you may alter your house's design, appearance, landscape, furnishings, and everything else about it, but you can never change the area where it is based. That's how important it is to choose and select where you want to construct your home or buy a house and lot.

Also, your home is more valuable if it is located in an area that is easily accessible. If you want to resale it in the future, these two considerations will help you get the most out of your money. They call this "viewing your real estate's future potential," since real estate has no set market worth—that is why it is also essential to consider an area that is lined up for future developments.

Tip #3. Investment planning.

In buying a house and lot, it is best if you can identify first which property you want to invest in. Make sure that you also have devised some plans for your investment and consider how much you would like to invest.
The amount of money you need to get your real estate firm off the ground is a critical consideration. In other words, you should decide how much money you want to borrow before applying for a loan. In the absence of borrowing, the amount you expect to pay in cash must also be sufficient.

Aside from this, you must also put into consideration how long do you plan to grow your money in your investment. Any real estate investor should be aware of the idea of the time value of money since it is critical to the calculation of the value of future cash flow from a property in today's currency.

Real estate investors use the time value of money as a financial planning technique to decide if they are better off utilizing their cash now for a renovation, or borrowing money and preserving their cash for a future project or another reason.

Tip #4. Do not hesitate to outsource.

If you are an Overseas Filipino Worker (OFW) or living remotely and you have a property that you don’t use or live in yet, it would be better if you can hire property managers or brokers who can manage your property so that you might as well earn money from it.

Real estate investors may profit in a variety of ways. In order to be successful in real estate, it's critical to develop a game plan that fits your personality and your long-term objectives. Because of this, many investors lose out on large rental revenue because they don't willing to deal with the effort involved in maintaining their properties.
Having a property manager in each market where you own properties may help you locate suitable tenants, undertake maintenance and repairs, and collect rent.

Tip #5. Do your homework.

Before you purchase a real estate property, you need to do some research first about it.
You can do this by doing a background check on the property before buying it since it’s not easy to invest into something you are not familiar with. A "background check" on a property is becoming more and more typical since it's often the most significant financial commitment your will ever make as an investor.

And that’s it for this week. We hope we were able to provide you the important guidelines and tips when starting your home investment. Stay tune to our next Lumina Sessions to know more about the real estate property industry.

Have a great week everyone!