Investing in new buildings: purchasing studios and small apartments for resale. Making money from real estate resale: secrets of successful flipping Business in the renovation and resale of apartments

• The benefits of buying an apartment in a new building at the excavation stage
• Economy option: resale of new garages

Buying small apartments (19 - 35 sq.m.) for further resale is a good way to invest in new buildings, but as with everything, there are pitfalls.

The essence of the strategy: purchase an apartment or studio in a new building (until the house is put into operation) and resell it in a year or two. Small studios and one-room apartments they grow in price best and are more liquid than large apartments.

Time required – only three days. One day to find a suitable property, the second day to submit documents to the bank, and the third to sign the contract.

When investing in new buildings for resale during a crisis, there are several important points to remember:

• it is better to choose new buildings in the last stages of construction, because there is a possibility of unfinished construction;
• developers need to be carefully checked;
• Selling a new building on the secondary market is difficult.

A definite plus is that during times of economic downturn, the price tag for new housing is much lower. But then, when the crisis comes out, real estate wins back inflation, while money depreciates. That is, the best strategy is to buy during a crisis and sell after the crisis is over, at the peak of the price.

Now the main problem in the real estate market is that the secondary market has frozen. Legally, if you bought an apartment and a developer and then resell it (without even living there for a day), this is already resale on the secondary market. A mortgage on a secondary property is not very profitable, and many people prefer to take out new buildings at a lower interest rate. Therefore, we can consider everything investment option in new houses and apartments for rent, and then exit the deal through sale.

On the other hand, until July 1, 2018, a new building can be purchased at a very attractive price. Due to the entry into force of changes to 218-FZ and the gradual abandonment of DDU, experts expect prices in this market to increase by 20-30% in the fall of 2018. So now you can buy an apartment in a new building on the most favorable terms, and the increase in cost in 1-2 years may be, instead of the standard 30-40%, much more - 50-60%.

Imagine this:

You bought an apartment for 2,100,000 rubles.
Over 6 months, it increased in value to 2,600,000 - 2,700,000 rubles.
According to calculations, the profit will be from 500,000 rubles.

Watch a fragment of Nikolai Mrochkovsky’s seminar, where the strategy of investing in new buildings for resale is discussed in more detail:

(Fragment of the seminar – )

The benefits of buying an apartment in a new building at the excavation stage

From the moment of excavation until the sale of all apartments, real estate increases in price by about 40-50%. Therefore, even taking into account the mortgage, it is profitable to purchase real estate: we pay 7-8% on the loan, the real estate grows by 40-50% during the entire construction period (1.5-2 years). We leave the difference to ourselves.

Let's look at how the cost of a new building increases when building a house. So:

1. As soon as the site is fenced off and construction begins, this is the starting price.
2. They dug a pit, poured the foundation - plus 10% of the cost.
3. We built the first floors - another plus 10%.
4. The upper floors were completed - another plus 10%.
5. We handed over the house to the state commission - another plus 10%.
6. They gave out the keys - another plus 10%.

Thus, taking into account the estimate, you can calculate at what stage it is most profitable for you to join the transaction. Of course, keeping in mind both the market situation and your financial capabilities.

Assessing the potential of an apartment in a new building for resale

To correctly evaluate an object, you must first determine:

1. How many rooms is more profitable to take? What size?
2. What are the differences in profitability between a one-room apartment, a two-room apartment, or a three-room apartment?
3. By what indicators is the liquidity of an object determined?

You can find the answer to these questions in the video " Assessing the potential of an apartment in a new building for resale».

(Fragment of the seminar – Secrets to creating cash flow and capital in real estate)

2 main rules written in the blood of unsuccessful investors when investing in new buildings:

• carefully select developers and houses, consider not only profitability, but also risks;
• explore the possibility of exiting the deal before the property is delivered (sanctions, order), and also consider a backup strategy - investing in new buildings for subsequent rental.

And don't put all your eggs in one basket. If it is possible to divide funds into several projects, do so!

Economy option: resale of new garages

You can implement a real estate resale strategy not only with new buildings, but also with garages. This is a great option if you don’t want to commit to apartments just yet. Dmitry Koretsky in Barnaul is investing in garages that are still under construction. Buys them cheap at an early stage and sells them at 2 times the price. Recently at a regular meeting of investors of the Investment Territory He just talked about his experience:

Watch the video “Killer Garage Investments”:

(Fragment of recording live meeting of investors of the Territory Investment project in Moscow)

To sum it up: there are options, and many of them. The main thing is to study the details and calculate the risks!

At the moment, there are a large number of people who do not want
invest in stock markets (company shares, bonds, foreign exchange
Forex market, etc.), do not trust financial organizations (banks on
deposits, deposits) and try to earn income on resale
real estate.

How to make money by reselling apartments

As practice shows, investing in real estate
much more reliable and profitable than investing in financial
tools. To start a resale business
real estate, it is enough to have initial capital to buy a room
(one-room apartment, etc.) and you can start in earnest
make money by reselling apartments.

Which apartment should I buy for resale?

One of the most profitable options for making money in real estate is
buy an apartment in poor or disrepair, make repairs and
resell It is advisable to choose 2-room apartments for purchase,
since these apartments are in good demand. Better buy
apartment in the worst condition, for example, burnt or
flooded, with broken windows and a bad bathroom. Apartments like
as a rule, you can buy it much cheaper (before buying, it’s good
bargain with the owner). If the apartment is in good condition, with
renovation and furniture, then you can’t buy a cheaper apartment. Worth it separately
note the business of urgent purchase of apartments.

What kind of renovation should be done in the apartment?

After you have bought an apartment without renovation, you can prepare it for
repair. First you need to replace the cold and hot water risers,
batteries and heating pipes (radiators). The kitchen should be made from cheap
tiles. If possible, replace the plumbing in the toilet and
bathroom

The main thing is that everything in the apartment is new or in good condition. Not
you should install expensive and high-quality tiles,
plumbing, it is better to stop at a domestic manufacturer.
Don’t skimp on quality, buy plumbing fixtures, etc., that offer a guarantee.

Also replace the windows and front door. You can install Chinese
inexpensive metal entrance door and the most inexpensive
plastic windows with a minimum set of fittings. Replace
switches, sockets in the apartment to new ones and raise them to a height of 80
centimeters (according to European standard)

If you need to pour a concrete floor (concrete screed), lay
inexpensive laminate (like parquet). Cover your rooms with vinyl wallpaper
(such wallpaper hides uneven walls). Buy wallpaper with geometric
pattern, fashion. At this point the repair can be considered complete. Remains
put the apartment up for sale.

Expenses and income from earnings on resale

apartments

The above-described renovation in a typical 2-room apartment takes
approximately 2-3 months and will cost approximately 2 - 4 thousand $. (depends on
region of residence and cost of building materials)

If repairs cost, for example, $4,000, then add to the cost
apartments $8,000, the approximate income of a business from resale of apartments will be
equal to 200%

In recent months, many people have been buying real estate to invest money with a view to selling it later. This type of business, like real estate resale, is not suitable for everyone. Firstly, considerable initial investment is required. Secondly, there is a danger of becoming a victim of an unscrupulous business scheme, or simply fraud. Large sums of money always attract scammers. Both of these circumstances lead to natural doubts, because the risk is quite high. How to protect your money as much as possible? According to experts, only preliminary study of the business, down to the nuances, will help a novice self-taught realtor minimize the degree of risk and ensure a good, and most importantly, stable income.

There are different ways to organize an apartment resale business. There are several most common methods that are popular among real estate businessmen. In order to consider each of them in detail and not miss important details, we decided to turn to one of the authoritative sources on the modern Russian real estate market, Artur Mikhailovich Yakushev, General Director.

Arthur Mikhailovich, it is widely believed that you can make great money on the resale of apartments in new buildings. They say that buying an apartment at the very beginning of construction, when builders literally start digging a foundation pit, can bring from 200 to 300 percent profit. Is it so?

Buying an apartment at this stage of construction is associated with the best price and some risk. The fact is that even a seemingly almost finished house can wait for quite a long time to connect communications to it and actually put it into operation. This may happen for various reasons, but the fact remains: the numbers you mentioned are out of the question until the facility is fully ready. This is the risk. But even at a stage far from commissioning, the apartment can be sold, but it is unlikely that it will be possible to make a profit in the desired amount.

So, with new buildings it is clear: the maximum profit is at the settlement stage, and until then anything can happen. What can be said about the acquisition of so-called secondary housing?

You can buy an inexpensive apartment without renovation, equip it, make cosmetic (or major) repairs and sell it at a profit. Of course, the cash costs for its purchase will be much greater than for the purchase of an apartment in a building under construction. At the same time, it is better to do repairs in the purchased apartment on your own. Today there are a lot of building materials that are relatively inexpensive and have good performance characteristics. Having spent a very small amount of money, you can make high-quality cosmetic repairs in your apartment without resorting to the help of specialists, whose payment will take almost all the profit you dreamed of. To do this, it is not necessary to have professional skills or great physical strength, and an ordinary woman can cope with this kind of work. Thus, you can save quite a lot and, accordingly, make good money. Yes, this is a lot of work, but it is guaranteed to pay off.

- What else can you use to make more money from selling an apartment?

Many people, due to some circumstances, need to urgently sell their apartment. Due to the urgency, they usually put the apartment up for sale at a fairly low price. If you skillfully ask for a discount, perhaps sellers will give it to you. They will not bargain over small things, because they need to get money as quickly as possible. After successfully purchasing an apartment, all that remains is to put it up for sale at a price that suits you. The main thing is not to let yourself be drawn into the excitement and not to lose a sense of reality when preparing for a transaction: it is on the desire for a quick profit that scammers catch their luck, involving buyers in a fast pace and forcing them to make a mistake.

- Can you advise novice realtors to work with rooms in communal apartments?

This method of acquiring real estate involves the phased purchase of individual rooms located in a communal apartment, which, as a rule, has a fairly large area. The cost of all individual rooms you purchase will be much lower than the price of one multi-room apartment.

If, moreover, this communal apartment is located in a prestigious area, its resale value will be even higher. Thus, by purchasing several separate rooms in a communal apartment and making cosmetic repairs to them, you can sell a large apartment very profitably.

It is necessary, however, to take into account that purchasing individual rooms in a communal apartment will require a long time to complete the entire package of documents for each room. In the process of purchasing rooms, unforeseen difficulties may arise, so it is better to carry out such a business with the involvement of professional lawyers and realtors, which also costs money.

- What should you consider first of all when starting to resell apartments?

For those entering the business of reselling apartments, I recommend that you first purchase only liquid apartments - one-room or two-room apartments. An apartment with more rooms costs much more, and there are significantly fewer real buyers.

When running such a business, you need to have patience and understand that delays in apartment sales occur frequently. Sometimes you have to wait a fairly long period of time for an acceptable deal for the purchase and sale of an apartment - from several months to several years.

Don’t forget about the cost of realtor and lawyer services. Even if you lose about 4%-6% of your profit, you will protect yourself from possible deception by dishonest sellers or - which also happens! - buyers. Qualified assistance when selling or buying an apartment is never superfluous even for experienced market participants.

If a situation arises where you have to wait a long time for the sale of the purchased apartment, you can always rent it out for both long-term and short-term rent. Tenants should be warned and a condition should be written into the contract that when the apartment is actually sold, they will have to vacate it. An apartment rented out will not be a dead weight, but will bring in real money, compensating for lost profits from funds “frozen” while waiting for a deal.

- We thank Artur Mikhailovich Yakushev, General Director of the Horizon Development Group of Companies, for detailed answers and recommendations.

We consider it useful to remind you that the resale of apartments is a very specific, complex and risky business. Study the experience of specialists, delve into all the details, use the support of professionals, and make informed decisions.
Happy sales!

Resale of apartments is gaining momentum again after the crisis. Read the article about how to make money by reselling apartments, which method to choose, and what skills are needed for this.

In Europe and the USA, quick resale of real estate or “flipping” has long been popular. In Russia, this type of business is just beginning to take root due to such difficulties as:

• large investments at the start;
• high risk of not selling the property at the desired price;
• subtleties of legislation and the real estate market.

However, those who studied the topic and did not take hasty steps found liquid objects to buy, bypassing their competitors and successfully making money.

How to start making money by reselling real estate

Making money from the resale of real estate should begin with setting up a business.

Of course, an individual can also buy apartments. Just keep in mind that too frequent transactions may alert the tax office.

In addition, you will pay more taxes (13% of the sale amount) than if you register as an individual entrepreneur. A tax deduction can be obtained only once and for an amount limited by law.

Choosing a tax system

The most convenient option is the simplified taxation system “Income minus expenses”. In this case, you will pay 15% of this difference.

As can be seen from the table, the savings are significant. You will be able to calmly go about your business, show customers that you work officially and legally, earning their trust, and you will not be afraid of fines for illegal business activities.

Most buyers of resale homes view the transaction as investment.

It is assumed that you have enough money to purchase an apartment. It should include possible costs for paperwork, repairs and utility bills.

Real estate can take a long time to sell. Therefore, it’s good if it’s “free” money that you won’t need in the near future.

Instead of buying the first apartment or house you come across, you need to analyze the real estate market in your region and city.

We conduct research

1. See how different properties sell based on the following indicators:

• type of structure;
• class of apartments;
• location;
• seasonality.

1. Supply and demand for new buildings and secondary housing must be assessed separately.
2. Assess the situation on the market for developers and real estate agencies.

Some unscrupulous developers have ruined their reputation so much that their apartments sell much worse, even despite the location in a good area and discounts. This is especially true if you are going to buy an apartment in a building under construction.

After such an analysis, you will be able to imagine the approximate spread of prices for apartments of a certain level and condition, so as not to overpay for air and not lose money when selling.

Buying an apartment in a new building for resale

Resale of real estate in new buildings can bring in an average of 500 thousand rubles per transaction. However, you need to carefully study all the pitfalls in order to get around them in time.

Let's consider purchasing options.

1. Construction at the foundation pit stage.

This is the most profitable option. After completion of construction, 40-50% of the original cost can be added to the price.

There are two main disadvantages:

• the likelihood of unfinished construction or delays during construction;
• You will have to wait a long time for the sale.

2. House under construction.

With an apartment in a building under construction, the situation is simpler: the likelihood of unfinished construction is much lower and there is less to wait. However, you earn less, about 500-600 thousand rubles, depending on the footage.

3. Buying a finished apartment with or without finishing.

If you want to make money by reselling an apartment, you can immediately discard the third option. It is not easy to sell a finished new apartment above the developer’s price, and this can only be done after a few years, when (and if) it rises in price.

The fact is that such an apartment will actually be sold on the secondary market, even if you have not lived in it for a day. It is more difficult to get a mortgage for such housing, so it is less attractive for buyers.

It is important to understand that you can earn even the amounts that I gave as an example only if you have a good understanding of the market.

If you are considering new buildings as an object for doing business, then carefully check the developer and assess the liquidity of the transaction long before its implementation. Even the best apartment may be of no use to anyone if it takes three days to get there by reindeer.

And immediately aim at one-room, two-room apartments and studios, since it is much more difficult to make money on the resale of large apartments. They are more expensive and in lower demand, so the sales process may take longer.

Despite the fact that this business is not very widespread in our country, competition exists in it. There are not many profitable options for apartments and many of them do not even make it onto the open market, remaining in closed realtor databases.

If only real estate market specialists can access such resources, then Bankruptcy trading platforms are open to everyone, and on them you can find hundreds of options for liquid apartments.

By the way, competition in the bankruptcy bidding market is noticeably lower than in the direct purchase of apartments for resale.

How is this possible, given the obvious benefits of buying an apartment at a price 50-70% below the market price? Few people yet know about this opportunity or do not understand why prices at auction are so low, and you will learn about this from the video with our expert.

Where to invest a little money?

We tell you more about how auctions work and the best strategies for purchasing bankrupt apartments, houses and cars in a free master class:

Interesting?

Purchasing secondary housing for resale

How to profitably resell an apartment purchased on the secondary market? The main thing is to evaluate the return on investment.

For this, you have much more initial data at your disposal, because the apartments are located in populated areas with already formed infrastructure: transport stops, shops, kindergartens, schools and clinics.

When buying an apartment on the secondary market, also budget for the costs of possible repairs. It can be different: from cosmetic finishing and replacement of wallpaper to major restoration of housing after a fire or flood.

Contrary to the opinion that it is profitable to buy only apartments in a “come and live” condition, when buying at bankruptcy auctions, do not be afraid to consider objects that are not so obviously attractive.

With this approach, you will quickly find an apartment at auction that can be bought 2-3 times cheaper than the market value, and your markup on sale will cover the cost of repairs.

Read detailed instructions for purchasing apartments at auction in the article:

With the proceeds from the sale, the auction organizers need to pay off the debt of the bankrupt, so the auction starts with a higher price, and then it decreases. However, the liquidity of such lots may vary, so the resale of debtors' property requires a careful approach.

A significant advantage is that you not only see photographs and videos and can come to the site, but also have the opportunity to familiarize yourself with all the documents before purchasing. Therefore, you will be able to assess the liquidity of the property and clearly calculate your profit.

In this video, our analyst analyzes a basic analysis of the liquidity of an apartment 50 km from St. Petersburg, which is being sold at a bankruptcy auction:

Buy an apartment near St. Petersburg inexpensively?

To profitably resell real estate on the secondary market, you can spend days and nights first searching for a profitable option, and then finding a buyer willing to pay an inflated price.

If you purchase at a bankruptcy auction, you have an alternative - Doctor Watson's formula which is that you find a buyer for a specific lot before participating in the auction, so You risk absolutely nothing.

Earnings from renting real estate

At the start of a real estate resale business, renting apartments can become a backup option.

An apartment is a serious investment. If you first purchased an object with your own funds and then put it up for sale, then it is unknown how soon you will find a buyer; perhaps tomorrow, or maybe in six months.

During this time, the purchased apartment can be rented out to recoup the investment in its maintenance.

Renting an apartment for a long term gives a good increase in wages. Some buy several apartments and live only on this money, receiving less, but every month.

This type of business has its advantages:

• you do not need to study and constantly monitor real estate legislation;
• you do not take risks by constantly investing money in the purchase of new apartments;
• you don't have to spend a lot of money through your accounts, which means you pay less taxes.

In addition to apartments, various real estate properties are sold at bankruptcy auctions.

You can buy and rent out garages or non-residential premises, which are cheaper than apartments and are in demand among tenants. You can also rent out office or industrial buildings if you don't sell them outright.

I discuss the topic of real estate business in more detail in another blog article:

Resale of other real estate

You can buy anything for resale, including:

• office buildings and workshops;
• country houses;
• garages and parking lots;
• land;
• technical buildings.

Once I bought premises in a city bathhouse for 228,509 rubles and sold them for 300,000 rubles...

Case No. 7 purchase of a lot from bankruptcy auctions in Furmanov

As you can see, resale of real estate, along with their rental, is a promising niche for business, even if you live in a small city.

However, in order for your income to grow without you having to work 24 hours a day, you need to improve your skills and develop your investor mindset.

Property resale training

You don’t have to be an experienced realtor to buy and profitably resell debtor apartments.

At the Bankruptcy Bidding Academy, we teach students how to conduct transactions with real estate put up for auction according to all the rules:

• assess the liquidity of the object and develop a backup plan for exiting the transaction;
• competently prepare applications for participation in tenders;
• communicate with bankruptcy trustees and collect as much information as possible about the lot;
• identify unprofitable lots and act correctly in situations where the tenderer tries to evade fulfilling his duties

This allows future specialists, already at the training stage, to understand how to make money on the resale of real estate without making unnecessary mistakes and without losing their own money.

The profession of a bidding specialist does not require special education and five years of university study, however, if you are interested in entering this business and learning how to buy up any bankrupt property at a 50-70% discount, then I highly recommend that you learn the intricacies of searching for objects and participating in auctions .

Knowledge from the fields of jurisprudence, marketing, analytics and direct sales will not be superfluous for working with real estate; however, even without them you can get 100-150% profit, simply using proven technology.

A step-by-step plan and a clear algorithm for cooperation with investors will protect you from mistakes and help you quickly find buyers for your properties.

How find “golden” objects at auction, as well as a ready buyer or investor using Dr. Watson’s formula, you will find out at our master class, which I advise you to sign up for right now in this form!

Interesting?

Click on the button and sign up for a free master class to learn about the 5 steps of Dr. Watson's Formula, how to buy cars, apartments and houses at bankruptcy auctions with a 50 - 90% discount!

No matter what arguments financiers give about other financing instruments, real estate is a person’s shelter, his home, where he lives and where he raises children. People will always need housing. Those who own real estate can always count on a stable source of income. In this article, we tried to systematize as much information as possible about ways to earn money from it. A brief overview of 18 methods is presented.

Methods of generating income based on renting out real estate

1) Buy an apartment and rent it out daily

The most popular way to make money in real estate. Any person who asks “how to make money on real estate” will immediately answer – rent it out monthly. There are quite a lot of offers from residents - you just need to weed out those who are unsuitable in your opinion. This may include the option of renting out a room in an apartment or dorm.

Pros:

• What is good about this method is the minimum of body movements. Sign an agreement with the tenant once, and then come once a month to receive money for your stay.

Minuses:

• Relatively small income. If you have taken out a mortgage on an apartment, and with a minimum down payment, rental income on a monthly basis is unlikely to cover the mortgage payments. The ideal option is when you inherited the apartment, or you simply earned money without the help of a bank.

2) Buy an apartment and rent it out daily

A more interesting way to make money from your apartment. Involves almost daily showing of apartments, check-in, check-out and cleaning. The best group for renting an apartment by the day are business travelers and travelers. The unsuitable demographic is nightclub lovers and other entertainment enthusiasts who want to rent an apartment for the purpose of having a lot of fun. Another good thing for people who come on a business trip is that they often stay not for one day, but for a week or two, which is still much more profitable for them than living in a hotel. These are people, as a rule, of decent social status and they do not cause anyone problems while living.

Pros:

• Higher level of income compared to monthly rent.

Minuses:

• Possible damage to property if the “wrong” audience is occupied. The best audience is business travelers and travelers. They cause a minimum of hassle and often rent housing for more than one day
• Regular cleaning of the apartment and washing of bed linen

3) Buy an apartment and rent it out at an hourly rate

The most aggressive option for renting out an apartment, providing maximum income. To use this method, it is advisable to have an office or another apartment to live in next to the one you are renting out, since you will have to constantly run around to move residents in. There may also be dissatisfaction among neighbors regarding the constant circulation of people on the site.

Pros:

• Very high income. If you have strong advertising support, you can rent out the apartment most of the day.

Minuses:

• Possible damage to property due to the occupancy of a dubious audience.
• You need to constantly be close to the apartment in order to be able to regularly move in and out of tenants.
• More frequent cleaning and washing of bed linen.
• Possible discontent among neighbors

4) Buy an apartment for a hostel

A budget hotel format that came from the West, which involves renting a bed in a comfortable apartment. The number of beds can reach 10-12. If you think of a hostel with a large number of migrant workers, then this is not at all what it is. The hostel is a room with a very good renovation of a European level and with all the amenities; it is populated mainly by Russians. Most of the clients are business travelers and travelers. A hostel is an excellent solution for those who need to stay overnight, but do not want to pay a large sum for a daily apartment. Renting a bed in a hostel in the regions in 2015 is 400-500 rubles, which is much cheaper than in any hotel or daily apartment.

Pros:

• Very high income due to a large turnover of clients
• Regular income due to the large number of beds. Some places will still be populated, which will allow you to be in the black.

Minuses

• The need to do very high-quality repairs. Grandma's option for a hostel is unlikely to be suitable. You will also need to buy several bunk beds
• Possible dissatisfaction among neighbors regarding the large circulation of people
• The need to have an assistant or devote all your free time to this, because... a large number of people means a lot of work on moving in, moving out, cleaning
• For quality work and maximum earnings, it will be necessary to register an individual entrepreneur to issue travel certificates to visiting people.

A recent amendment to the law on hostels prohibits the use of residential premises for hostels. Alas:(

To work in white with hostels, you will have to purchase commercial real estate.

5) Buy a townhouse and rent it out

Townhouse is a European low-rise type of housing characterized by high living comfort. Townhouses are characterized by a small number of neighbors and location away from large areas of the metropolis. As a rule, these are quiet, secluded corners of life on the outskirts of the city, in newly built villages and near forests. We have identified a townhouse separately from a regular apartment, as it has its own characteristics. It can also be rented monthly, daily or hourly

Pros:

• Higher status of tenants – because higher class housing
• There is a possibility of redevelopment in order to increase the number of apartments (cutting apartments into studios)

Minuses:

• Tighter tenant market – properties may take longer to rent than usual

6) Buy a cottage/country house and rent it out

For those who have their own cottage, there is also no problem getting rental income from it. At the same time, both monthly and daily rental options are common. It is worth remembering that when renting out a cottage on a monthly basis, the location of the cottage relative to transport interchanges plays an important role, since most of these houses are built outside the city.

For owners of large cottages, the option of partial renting of space (living in one part of the cottage and renting out the other) or renting out room by room is also possible.

There is also an option to rent out the cottage at certain times of the year. For example, in the summer you can live there yourself, and in the winter, so that it is not empty, you can move in tenants.

A very chic option for making money on a cottage is renting it out for the New Year. Everyone is probably familiar with the rush to book vacation spots for this holiday. And spending the New Year in a beautiful and cozy cottage is a very good idea. You can also expand the options - rent it out to companies for various corporate events.

Pros:

• Stable income - you can rent out the cottage at any time of the year. This is comfortable housing in the fresh air and isolation from neighbors.
• Variability in the type of rental - you can rent out part of the cottage, you can rent it out room by room, you can rent it out at different times of the year

Minuses:

• Most often, cottages are located outside the city, so its transport geographical location is important here.
• The greatest demand is for small-sized housing - 50-80 square meters. m. As a rule, cottages have a much larger area. The solution is to house multiple tenants.

7) Buy or build a multi-apartment low-rise building and rent it out

For those who have significant capital, they have probably already appreciated the advantages of investing in apartment buildings. At the same time, it is possible to create a kind of apartment building here, where all apartments will be rented out on a rental basis. Construction and income generation from such houses is the topic of a separate article. As for the cost of such a house, there are options for building budget housing, for example from the same LSTK. The most difficult thing in this method is to find suitable land with convenient transport links, and the availability of sufficient capital.

Pros:

• High income - a large number of rental apartments will provide a stable income even with incomplete occupancy.

Minuses:

• High cost of initial investment;
• Is it possible to spend a long time searching for a suitable plot of land? if construction is planned.

8) Buy property abroad and rent it out under a guaranteed lease

Foreign real estate has long been attracting Russian investors of all stripes, from small to large, with its favorable conditions. There is an opinion that the Western real estate market is more reliable and at the same time more profitable.

How to make money on foreign real estate while living in Russia? The simplest thing is to buy it with the conclusion of an agreement guaranteed lease leaseback . (The method first appeared in France, so.) What kind of mechanism is this? You buy real estate abroad, furnish it at your discretion, and a subsidiary of the developer rents it out (essentially a management company), paying you a commission, depending on the country, 2-6% per annum of the cost of housing. What is good about this method is that you do not need to deal with the selection of tenants and other organizational issues, and the reliability of foreign real estate is unlikely to raise doubts in anyone.

Real estate abroad is represented in a wide variety - these include villas, apart-hotels, mini-hotels, apartments, ordinary apartments, houses on the seashore. Given the high resort demand in certain countries, such properties are unlikely to be empty. Another important advantage of investing in foreign real estate is that its price is much lower than in Moscow.

Pros:

• A fundamental investment tool - all investors, from large to small, invest (or dream of investing) part of their money in foreign real estate. It is reliable and promising.
• The opportunity to earn more income while being in Russia through guaranteed rentals.

Minuses:

• Knowledge of a foreign language (at least English) is desirable;
• The need to travel to the place of purchase of real estate;
• There is little information regarding the legal and legislative aspects of the country where real estate is purchased.

9) Buy a room in a Russian apartment and rent it out

Apartments are gradually gaining popularity on the Russian real estate market. This is very reminiscent of the previous point, but only this is happening in Russia, with a corresponding, familiar social situation. The apartments resemble ordinary apartments, but with an already decorated interior. There are also all the services here, as in other foreign hotels - concierge service, food delivery to the room and others. They wrote about them in more detail in a separate article.

Pros:

• The cost of Russian apartments is cheaper than apartments of the same size;
• Very high service at the level of European foreign hotels;
• Ideal location for an additional apartment;
• Highly developed infrastructure of the area - there are restaurants, bars, fitness centers, beauty salons, etc. nearby (and often even in the building itself);
• Possibility of renting out with the help of a management company, which will itself be responsible for moving residents into your room.

Minuses:

• The object has not been sufficiently studied from the point of view of legislation, in particular, the laws of 214-FZ and a number of other legal restrictions are not yet applicable to it.
• The apartment is a non-residential premises, therefore, you cannot register in it.
• From the previous paragraph it follows that apartments can only be the second and subsequent housing, which is available to very few segments of the population
• There are still not enough offers on the market, mostly in the Moscow region.

10) Buy commercial non-residential premises and rent it out

Commercial real estate stands apart in the topic of investment. Commercial real estate is represented by a wide variety of objects - warehouses (warm and cold), industrial premises, non-residential premises on the ground floor of a residential building, areas in shopping centers, basements, utility rooms, plinths and others. Why do people invest in real estate like this? The answer is simple - there is a great demand for it. Small business is the basis of our country’s economy, therefore a large number of entrepreneurs regularly look for places where traffic is higher, or where it is cheaper, or simply to open new outlets.

Pros:

• Stable income. Even in an economic downturn, you can make temporary concessions to tenants, as long as they continue to rent premises.
• A large selection of rental options - premises can be divided into several and rented out in parts, which is successfully practiced by many.
• Unlike residential real estate, the floor space of commercial properties can amount to hundreds and thousands of square meters, which accordingly significantly affects income.

Minuses:

• Great turbulence is possible in the commercial real estate market during a crisis.
• It can be difficult to find tenants for large premises.

11) Redevelopment of the premises divided into several separate isolated rooms of a smaller area with their further rental

The method is based on increasing the number of isolated apartments within one object. Simply put, you have a one-room apartment - you can rent it out as is, or you can renovate it, and divide it into 2 isolated studio apartments and rent each of them as separate object, which in terms of profitability is approximately one and a half times higher than the rental of an ordinary apartment.

Redevelopment can be done in various objects - 1, 2, 3-room apartments, cottages, townhouses. There are some subtleties here in terms of permission for such alterations, but all of them, as a rule, are not difficult to solve.

Pros:

• Increased income due to education of several isolated and unrelated residences

Minuses:

• The need for repairs, approval of redevelopment

12) Buy a garage/box/parking space and rent it out

They wrote about this in a separate article (see). This method is for those who do not have a large amount of money, but nevertheless want to purchase at least some real estate. You can purchase garages, garage boxes, and parking spaces in underground parking lots.

Pros:

• Low price entry - some objects in the regions can be purchased from 200-250 thousand rubles

Minuses:

• Low income.

Methods based on the sale of real estate

13) Buy land and then sell it at a higher price

One of the easiest ways to make money from real estate investments is to buy a plot of land. You can buy land, hold it for a while without making any effort to maintain it, and then, after it grows, sell it at a profit.

You can also build a house, a cottage or even a townhouse on the purchased plot and then look at the circumstances - either sell the finished residential premises, receiving a significant benefit from the initial costs, or rent it out.

Pros:

• Large selection of land plots of any type
• Land requires a minimum of attention if your goal is to hold some land and sell it at a higher price.

Minuses:

• Most often, land is acquired for the further construction of houses on it, which, accordingly, requires new costs and construction skills (at least superficial)

14) Buy an apartment at the initial stage of construction and sell it after putting the house into operation

This method suggests purchasing real estate, for example, a residential apartment building, at an early stage of construction. You can take it from the very beginning of construction, i.e. at the excavation stage or at its further stages. The earlier in the construction stage you buy apartments, the higher the markup will be in the end when this apartment is put into operation.

After the house is put into operation, the purchased apartment can be sold; the difference between the initial investment amount can in some cases reach 60-80%, but you will have to wait on average 1.5-2 years. It is also worth considering that in Russia there is a high risk of unfinished construction, even despite significant amendments to Federal Law 214. There is a chance of not getting the coveted apartment. Therefore, the safest and most importantly, the fastest way to make a profit is to buy an apartment at the last stages of construction, for example, at the stage of constructing the roof.

Pros:

• There is no need to move in and move in residents. It is necessary to invest money at a certain stage of construction, and then sell the apartment at a much higher price.
• High income due to the general rise in price of real estate, as well as building materials

Minuses:

• There is a risk of unfinished construction.

15) Buy an apartment in poor condition, renovate it and sell it for more money

Another popular method of capitalizing on a real estate investment is to purchase a property in poor condition. It happens that the apartment was inhabited by people of lower social strata (drug addicts, drunkards, etc.), whose life was reflected in the apartment - dirt everywhere, peeled and faded walls, barely alive plumbing, a fetid smell, damaged furniture, etc. . There are also cases that apartments are sold after pensioners have lived there for many years (hence the term “grandmother’s option”), which also leaves an imprint on the condition of the apartment. This series includes very old real estate, the service life of which can reach many decades.

Such apartments are of particular interest, because by making high-quality renovations there, you can raise the price of the apartment to the average market value. And if such an apartment is located in the center, then the price is higher than the average price on the market. Having made repairs and brought the apartment into divine shape, you can start renting it out monthly, daily, or simply by selling it.

Pros:

• After the repairs have been made, you can receive a stable income both monthly and simply remain at a big plus when selling this apartment.

Minuses:

• Repair costs
• Finding distressed housing takes time; there are not many such offers on the market, and many realtors are hunting for them.

16) Buy mortgaged or seized real estate at a low price and sell it at a higher price

When issuing loans, banks often take the borrower's real estate as collateral. Sometimes it happens that the borrower is unable to pay. Then the collateral is completely transferred to the bank, and it tries to sell it at the lowest prices, just to get its money back from this property (the amount that the borrower owes). The bidding procedure is quite confusing, and it takes time to understand all the intricacies.

Pros:

• You can find real estate at a price several times cheaper than the market

Minuses:

• It takes time to search for an object and regularly monitor advertisements.
• The purchase of collateral is carried out using cash; additional mortgages are not provided here

17) Build a house from scratch and sell it upon completion of construction

You can build both houses and cottages, small apartment buildings (if you have sufficient capital), and townhouses.

Pros:

• High income in case of successful completion of construction and sale of the property;
• The ability to use the facility yourself (a country house is the dream of any city dweller).

Minuses:

• You need to be in the “topic” of construction, from choosing a site to interior decoration.
• Monitor the progress of construction if you are hiring builders.

Non-trivial ways:

18) Use a shipping container as a home

A relatively new format for country housing for Russia, somewhat reminiscent of an ordinary cabin, but more comfortable. This is the most affordable house you can build. But you won’t have to build anything here, and this is another plus, all you need to do is bring it sea ​​container , for example, 20 or 40 feet, make repairs inside (see picture), connect communications - then you can live there yourself, or you can even rent out if the site is located near main transport routes.

For such a house, even a used container is suitable, the cost of which does not exceed 100,000 rubles. Interior and exterior decoration, plus communications connections is about another 50-80 thousand rubles. And the house can be said to be ready. The most interesting thing is that in the future it can also be moved to another site.

Imagine the situation. You bought a plot of land and are starting to build. You want to be present at a construction site or maybe you will work as a builder yourself. This container is suitable for temporary residence during the construction phase. In the future, the container can be transported to another site.

As for investor interest, as we have already said, a house into which such a container can be converted can be rented out if beautiful finishing is done. Perhaps the rental of such housing will cost less than in other houses, but there are quite a lot of people who want to pay as little as possible for housing. This option is ideal for those who are not willing to pay a lot for rent.

This option is also worth considering. Let's say you purchased land, maybe even with the help of a loan, but you are not ready to build yet. Place a shipping container there, make some minor repairs and hand it over. The proceeds will be used to pay off the loan or for further construction.