Real Estate Investing can be a great career choice for the person who wants to build that type of business. And it is a business. One must start off looking at it as a business and operate it daily as you would any other business.
Let me offer you a few tips on building a successful real estate investing career;
1) Decide on what you want – there are so many ways you can build your business.
A) Wholesaling – many people start off here. They find a property and then sell it to another investor and make a fee for doing the transaction.
B) Rehabbing- If you are OK with fixing and repairing houses (or overseeing a crew that does that) then this may be the way to go.
C) Landlording – here you purchase and hold real estate receiving rental payments each month
D) Sellig – here all you do is sell the real estate you acquire looking to do little or no work to it. You look for either homeowners or investors.
2) Decide on how you want to get there -If you want you can do either one or all of these methods. The key is to determine how you want to spend your days dealing with real estate. For a wholesaler you will need to create a network of investors to buy your deals. For a rehabber you will need to assemble a crew of professionals, observe local building codes, etc. For the landlord you will need to find good cash flowing rentals and deal with either tenants or property management companies. To sell you will either need a real estate license or connect with local realtors to sell your deals.
3) Set financial goals for your investing career – how much money do you want to make monthly? Annually? Wholesaling provides quick money ($2,000- $10,000 range): Rehabbing provides larger payday but takes months to realize ($15,000-$40,000 or more); Landlording provides steady monthly rental income; Selling can give you commission or owners income.
4) Think long term – whichever strategy you choose, look to develop long term systems that will sustain your business. Cash flow is king so establish ways to keep the cash flowing into your business and before long your business will be taking care of you nicely.
5) Use LLC’s and Corporations- these will help protect your assets and make title transfers easier to convey to buyers.