Everyone seems to think that property development needs to involve a solitary venture or the purchase of a large and expensive property. This is actually not the case. There are other options that you can use in order to break into the real estate or property development market and end up turning a reasonable profit on your investment. These options may not be right for every person but they are worth looking into to see whether or not they are right for you.

Rental Properties

If you are interested in a continuing income from your property development projects you may want to think about purchasing and developing rental properties. A rental property can be anything residential from a house or apartment complex or something that is more corporate. Examples of corporate properties include stores, shopping complexes or office spaces. The opportunities you have will depend on the amount of money you can invest and the level of involvement or maximum size that you want to deal with.

Remember that being a landlord does not involve sitting back and watching the profits come to you, however. There is often quite a bit of work relating to rental properties. You will need to pay money in order to cover the cost of repairs or renovations and you will need to figure out whether or not you can actually make a profit from a project.

This is easy to do. You simply consider how much money it will take per month to cover any mortgages or loans, costs such as property taxes, and a contingency fund. If you are doing renovations you will also need to make sure you have also set aside enough money to cover these costs. Once you have figured out how much this will amount to, you need to figure out how much you will be able to collect in rent. That will tell you whether or not you are able to make a profit on this kind of property development project.

Groups for real estate investment

If you do not want to have a more active role in your property development project you may want to think about an investment group that uses rental properties as a basis for their income. These groups will allow you to buy into a property development project and will often allow you to have varying levels of financial commitment. You may be able to buy a set number of units or choose the number of units that you want to purchase.

The benefit to these is that you do not have to take an active part in managing a property. The group will take care of this for you. Another benefit of this kind of arrangement is that the finances are structured in such a way that they will be able to cover the mortgage on months when your units do not have tenants in them.

If you are planning on becoming involved with a group investment project, it is crucial that you do research. You want to make sure that you are dealing with a group that has thought of contingencies and that there are clear rules and regulations that set out profits, how certain situations are handled and what the terms of investment are.