After 2008, many people have shied away from entering the real estate industry. It was the year the housing bubble popped and prices dropped drastically along with the number of buyers. This left the real estate market with hundreds of thousands of people “under water” on their mortgage with no buyers to sell to. This created a huge amount of foreclosures. Now as we begin to close in 2013 and look forward to 2014, the real estate market is doing much better with prices stabilizing and demand increasing. However, many people are asking if it is still a safe and good career to move into today.
There are many different paths people can take in real estate. The most obvious choice is to become an agent or a broker and help people buy and sell homes while earning a percentage of the sales price as commission. This is the industry that got hit the hardest in 2008 as the number of real estate transactions dropped drastically. Many people think that’s the only path to take in real estate, but in actuality, it’s the path where people make the least amount of money.
You can make the most amount of money in real estate by becoming a developer. Recently, the Camana Bay was developed in the Caribbean where the developers are expected to earn millions of dollars on the project. You can learn more about the developer, Ken Dart, by clicking here. There is no limit to how much real estate developers can make. Most people are familiar with Donald Trump who is a major developer with projects all over the world including Las Vegas and Eastern Europe. While Dart specializes in developing luxurious business offices, Trump’s experience is in hotels and resorts. It takes millions and hundreds of millions of dollars to develop these kinds of buildings, but is always funded by third party investors.
In our experience however, property management and real estate investing is the best way to get into the industry. Property management is the business of managing people’s properties that they rent out to tenants. The duties of property managers consist of collecting rent, finding tenants, and keeping up with maintenance on the building. Most property managers invest their revenues into property to be held by the company which they also rent out and manage. Buying properties to hold and rent out is one of the safes investments people can make and was relatively safe from the housing crash in 2008. This is because managing properties doesn’t rely on the transaction, but on people living in the property. Even in the worst of times, everyone needs a place to live making this form of a real estate career pretty safe.
Whether you decide to become a broker, a property manager, or a developer, real estate is an exciting career for many individuals who value building portfolios of properties. Just remember that being a broker is the quickest dollar, a property manager is the safest and most predictive dollar, and being the developer is the largest dollar.