7 Business Basics for the Real Estate Investor
Getting started in real estate investing can be a tremendously exciting new chapter in your life; one that could lead to wealth building and freedom.
However, it takes a lot more than just going out and finding a cheap property to buy and then selling it for a profit. As always, I can’t say enough about hard work, persistence and dedication; and, there are a number of other factors that go into creating a successful real estate investment business.
Here are 7 basics you can’t do without:
Some say that real estate is a “multidisciplinary” field. Before you start, it is imperative that you get educated in the concepts of real estate investing. Begin with a comprehensive course like one the few offered at Real Estate World Wide such as the Rapid Success System or SMART.
Just to get you started, a few things you’ll want to understand are
- Real estate investment lingo
- Your state laws regarding real estate
- Federal income tax law
- Property management
- Real estate finance
- Real estate sales
- Real estate appraisal
- Construction and renovation basics (in some strategies)
- Marketing and sales
Build a Business Plan
Just as with any other business, real estate investing requires a plan. When you build a strong foundation for your efforts to stand on, your business will become sustainable, able to overcome any of the multitude of obstacles that investors face in an ever-tumultuous market.
There are many different strategies and angles from which to approach the business of real estate investing. The more you focus on one specific niche, the better and more knowledgeable you will become in that area; eventually you will be able to diversify your efforts.
Build Your Business Office
Real Estate investing is not a hobby. It is a business. You have to treat your real estate investing efforts as such. Here are some basic business needs you must put in place:
- Choose a company name
- Obtain a business address, phone number and email
- Get business cards
- Set up a corporation or company for real estate- many successful real estate investors feel that a LLC is the most optimal way to go.
- Build a website
- Set up your social media business accounts
Optimize your Acquisition Efforts
It is easy to get emotionally involved when it comes to making real estate purchases. Reducing the time and effort it takes to find the right investment properties goes a long way toward remaining objective; with a good system in place like Find Motivated Sellers Now (FMSN), you can do that.
It is imperative that you don’t pay too much for your investment properties and also that you obtain real estate that you can move, for profit, in one way or another. Use real estate investment systems to help you find motivated sellers and to build a buyers list that you can go to time and again.
Financing your finds
While it’s true that some investors have been able to do some great deals with no money in their pockets, it really is best to have some cash to work with; or, at a minimum, access to someone else’s cash. Private moneylenders can be a cornerstone to success. Develop relationships with private lenders and you won’t bump up against the obstacles that so many investors face in an age of tight-fisted traditional lenders. Find Private Lenders in your area by clicking HERE.
Marketing is a must- learn how and put as much as you can into it
Regardless of what facet of real estate investing you decide to concentrate on, you will absolutely need to have a strong focus in marketing. Not your forte? Marketing basics are not that difficult to learn and there are a number of great resources available to help you automate many of your marketing needs.
Marketing comes as an afterthought to far to many investors- trust me when I tell you that putting together an excellent marketing plan, and allocating the necessary budget towards those efforts, is crucial to your success.
Have your exit strategies firmly in place
While it might seem counter intuitive to be thinking about how to get out before you even get in, having a good exit strategy for every investment you make is vital. Regardless of whether you flip it, rent it or exchange it, having a solid way out will greatly minimize your risk.