Sometimes making money in real estate can sound too much like a "get rich quick" scheme that never really works out. While flipping homes can be a hit and miss venture, building a home to make money is usually more successful. Building a home is a huge undertaking that can take months to accomplish. But when it's done, you are left with a home that has automatic equity, and that equity can net you big returns in the real estate market. Here's how you can make money building a home.
Research the area you wish to build a home in. Find out what type of amenities homeowners are looking for. Make sure you include popular features such as a master bath, walk-in closet or jetted tubs, which will ensure the home will be easy to sell for a profit when it is finished.
Choose a location wisely. Even the nicest and most luxurious home will have a hard time being sold if it is in a poor location. Look for convenience when you choose a location, close to schools and grocery stores, yet still slightly remote.
Consult with a contractor on how much per square foot you hope to build the house. He should be able to give you a basic number that you can start with. The lower the costs are to build the home, the more money you stand to make when it is sold. Make sure you are getting the best prices on all of your materials and labor to keep costs down.
Do some of the work yourself. Minor tasks like painting walls or laying tile are fairly easy and can be done on your own time to save money on hiring laborers.
Price the home comparatively with other homes in your area. A real estate agent should be able to give you the prices on comparable properties. If you are really keen on selling and making a quick profit, sell the home slightly less than the other homes in the area.