Learn how to build a business and not a job

Some individuals choose to start a business for the prestige and image, but there are many tangible financial reasons to consider formalizing a real estate investing business too.

This includes:

• Reducing liability
• Additional tax breaks
• Ease of succession and business continuity planning
• Scalability
• Maximizing profit

If you choose to create businesses around your real estate investments that can build value in those companies. For example when you build systems for your wholesaling houses, rental properties, and buy, fix and flip businesses your simultaneously creating value. Executing the same day to day investment activities under a business and brand, millions, and billions can be grown in company value if structured correctly. For some this could far exceed the financial rewards of investment activity operating as an individual real estate investor. So why not achieve both at the same time?

Warren Buffett’s mentor Benjamin Graham reminds us that “Investment is most intelligent when it is most business like.”

Eliminating Risk when Starting a Real Estate Business

Money can come quickly and easily for some real estate entrepreneurs. But there is a risk of failure with any startup. Some unnecessarily allow this to hold them back from their dreams and goals. Thankfully there are numerous ways for real estate investors and entrepreneurs to minimize risk when starting a real estate investment company.
Sometimes this is about knowing the right moves to make to replicate success. But it is equally about avoiding the mistakes others have made.

Below are eight reasons I’ve seen new and even seasoned real estate investing businesses fail:

1. Lack of knowledge
2. Living above their means
3. Being too emotional and unbusinesslike
4. Poor money management
5. Family time pressure
6. Not valuing great employees or contractors
7. Not paying taxes
8. Failure to plan

Crush these risks and get on the fast track to success by:

• Beginning with creating a real estate business plan
• Setting work-life balance boundaries in advance
• Deciding that you will be in it for the long run, not just to get rich quick
• Investing in your real estate education
• Developing lines of credit and sources of extra capital
• Building a team of advisors
• Diversifying your personal investment portfolio
• Sticking to sound business and investment principles

Seven Steps to Launching a Real Estate Investment Company:

Learn, Master and choose which real estate investment strategy you will use
Conduct thorough market research
Complete your business plan
Choose a name for your company
Organize and file your company, LLC, S Corp, or other legal entity
Creating branding materials (logos, business cards, etc.)
Get your marketing materials together, and get going

So get smart, get prepared, and get going…

I”ll See you at the closing table,

Marcel Umphery the “R.E.I. Successmaker”