Why Should I Invest My Money in Real Estate Business?

Now a days we can see the trend of investing money in real estate business is increasing day by day. It ranges from acquiring one small house or plot to acquiring a big estate. Nowadays we can see the presence of top level companies in real estate business in addition to ordinary buyer. It shows how important this real estate business in current world. None of the big players neglect the importance of real-estate industry. There are many factors behind the success of this business. Some of them are:

1. More safety for your investment

2. Price of land and properties will always go high

3. Investing in real estate is like increasing assets

4. Low risk business compared to many other investment

Real-estate seems to be low risky business compared to other major investments. Let us consider the share market business. Investing money in share market is high risky. We cannot predict the exact income generated from share marketing due to the high volatile nature of the business. If we are lucky we will be able to get a good amount from share market business. If we are unlucky we may face a big lose of money. Real-estate business do not have such a risk. We can expect a minimum money back guaranty in real-estate business. It is because of some characters of real-estate industry. Properties we acquire are solid and not a paper money like in share market. It is an asset which too can contribute additional income.

If we invest our money in purchasing a building, it is the process of acquiring additional asset. Even if we do not sell this building to a different person we can get rent from it. It is an additional source of income in addition to an investment for future business. In addition to this, market value of a building and land will always go high. So we can always expect more by investing our money in real-estate industry. This feature make our business a low risky one.

It is important to know the basic trends in real-estate before investing your money in it. You should not invest your money in a business without knowing the pulse and trend of it. So if you are seriously planning to invest your money in buying land and building, you may consider the advice from the experts in the field. There are many local consultancies which are ready to guide to properly and advice to how and when you should invest your money.

Set Yourself Up for Success With Your Real Estate Business

So you’ve decided that you want to invest in real estate. It might be that you are still working a full-time job or you are running a business that right now takes up most of your time. Don’t make the mistake of treating your new venture as a side hobby. Diversifying and building your wealth with real estate is one of the best things you can do for your future.

Buying investment real estate is an activity that should be treated as a business and not a hobby. The mistake that many newbie investors make is that they are just making it up as they go along and are not taking the time to do their homework on how to set up their business before they start looking for properties.

It is important to not only structure your business well before you go out buying properties, but also to make sure that you put forth the most professional image possible. There are a lot of aspects to doing this well that I share with my clients, and I will share just a few simple strategies with you here.

First, every new business should you have a name. Choose a name that reflects your investing goals, the industry, and be sure to stay away from words that might have legal implications (ex. “Realty”). Also, be sure to check the availability of the name with your local Secretary of State. This is an important first step, because this is the name you will use with everything from registering your business with your state to opening your bank account. You don’t want tenants making payments made payable to you personally.

That leads us into my second recommendation. Now that you have a business name and have ideally registered it with the state, you will also want to keep your business expenses separate from your personal expenses. The easiest way to do this is to open a business bank account separate from your personal bank account, and make sure to have all income and expenses for your properties and other business related expenses flow through it. Don’t make the mistake of mixing your personal and business expenses, because should you ever be audited by the IRS you could lose some if not all of your legitimate business expenses.

When I started investing some years ago, one of the first things I did was create a name and open a bank account. It gave me a professional appearance to all of the vendors and customers I came into contact with, and an easy way to start accepting payments and tracking expenses.

Lastly, I recommend meeting with an attorney (real estate or trust & estate) to determine the best legal entity for your personal circumstances. Many real estate investors use a Limited Liability Company (LLC) because of the limits on their personal liability in the event of a legal suit. Again, check with your attorney to determine what will work best for you, but make sure you do not own your investment properties in your personal name.

Using these simple strategies, you are well on your way to setting up your new real estate business for success.

Wishing you much success,

Jewell Staley
Real Estate Investing Mentor

Now, if you’re just starting out and trying to build a portfolio of cash flow generating residential properties, then follow a step-by-step system that feels authentic and is easy to follow. The Real Estate Financial Freedom SystemTM coaching programs offer a comprehensive, easy, step-by-step method to investing in residential real estate that will generate monthly cash flow to build wealth. You can learn more at Real Estate Coaching.

A former Wall Street Executive and MBA Graduate of the Wharton School at the University of Pennsylvania, Jewell Staley, teaches working professionals and business owners how to diversify and build real wealth with real estate.

How to Start a Real Estate Business?

Introduction to the Real Estate Sector:

One of the booming sunrise sectors in the world is undoubtedly Real Estate. Today, it has been recognized as one of the most lucrative investment alternatives. A good number of individuals irrespective of the demographic facets are seen considering real estate as a serious investment mainly because this is one such sector the value of which is sure to shoot up in the long run.

Moreover, this sector has ended up creating a win win situation for all the stakeholders who happen to hold direct or indirect interest in the same. This is one of the vital reasons that has contributed to the growth of real estate business in general, which is exactly why we see a number of real estate companies and agencies laying base in every nook and corner of the street.

There may be plenty of people out there who are keenly looking forward to establish their very own successful real estate companies. However, they are often confused as to where they should start from. In order to bring an end to the dilemma faced by all such people out there, we will be helping you with a brief blueprint that we believe may end up playing a crucial role in your real estate journey.

The Starting Point – Raise Your Start Up Capital:

One primary requirement for kick-starting a business is to begin by raising the much needed start up capital, the core role of which is to meet the various fixed and variable costs. This concept holds equally true in case of a real estate business. In order to give birth to your dream, you need to begin by locating and eventually investing in the office space, buying the necessary office equipment, designing logos and preparing other marketing material and of-course diverting funds towards insurance. Similarly, you will also require funds to meet the routine operating expenses in the days to come. Once the funds are in place, the first step can be easily met.

Meet Regulatory Requirements:

It is essential for you to note that you cannot really begin transacting in the real estate arena on any day at random. In most of the countries, you need to hold a valid license in order to be able to operate as a consultant. It is advisable for you to get on board a reliable legal counsel in order to better acquaint yourself with the rules and regulations that are prevalent in the real estate platform of your country. Once you have the necessary license in hand, you can begin your operations as a real estate consultant.

Get into Your Hiring Boots:

Next up you will be required to initiate the recruitment and selection processes in order to hire agents to your team. At this point, it is essential for you to draft an independent contractor agreement so as to maintain clarity and transparent communication between you as the employer and your individual agents. The agreement should necessarily house details regarding the ratio in which the commission would be distributed, code of ethics that need to be imbibed by the agents and of-course the general office related policies and procedures.

Fix in Your Mind – Customer is the Whole & Sole:

Once you are through with the above three steps, you need to proceed further in order to build a loyal customer base. In order to survive and succeed as a real estate entrepreneur, a stable clientele becomes a must. You can reap results in this area by investing towards direct and indirect advertising, integrated marketing communication models and of-course a tad bit of public relations. Similarly, you can also lay weightage on joining hands with a Search Engine Optimization company, which is believed to play a critical role in improving your visibility and presence in the market.

The Ultimate Add-on – A professional looking website:

The above elements are basically the preliminary droplets that would end up contributing to your wide ocean of real estate business. Apart from the above aspects, there is yet another component, which if added to your business initiation program is sure to benefit you in a massive way. The building block about which we are talking here is the need to develop and introduce a relevant, innovative and of-course distinct looking professional website for your business unit.

If we were to rely on the statistics, then we can easily come to the conclusion that in the recent times it has been found that over eighty percent of the individuals begin their home search online. This is exactly why a professional website is likely to come handy to your real estate unit. Similarly, a website can also help you survive the cut-throat competition by making your details available to the prospective clients at large.

However, one area that most of the companies end up giving a miss is with regards to the listings. Most of the real estate agents rely heavily on the Multiple Listing Service and fail to recognize the importance of listing out all the properties that come under their basket, on their respective websites. It is quite obvious that only when you offer a holistic listing on your website will you be able to hear your cash registers ringing, which is actually the end result of a wide number of sales.