How long have you been dying to unchain yourself from the desk of your nine to five job? How badly do you desire to give orders rather than receive them? How important is it to you to live a life of financial freedom so that you can provide for yourself and your family?
If you said yes to any of the above questions, then I ask you this: have you ever considered starting a real estate business?
Over the last decade, middle class families have lost half of their net worths because wages are falling and inflation is rising. Another sad reality of today is the fact that less than five percent of people who reach age 65 have enough money to retire or are “financially secure enough” according the US census bureau. If you don’t want to be apart of those bleak statistics, it might be time to consider utilizing real estate as the vehicle you ride to your financial and personal goals. In fact, the IRS recently reported that over the past 50 years, of all the Americans who declared more than one million dollars on their income tax returns, 71 percent of them were in real estate.
I will not lie to you and say that starting a real estate business will be easy, but I can tell you that it is worth the trial and error process. At the very least, be sure to incorporate small business systems to make the transition easier and more efficient.
The benefits that come with investing in real estate are nearly endless. Not only do you have to ability to make a sizable profit on every deal, but also, real estate is proving to be a solid hedge against the stock market and inflation. Some other benefits that are guaranteed to come with starting a real estate business include but are not limited to:
- Tax Benefits. If you gross $100,000 per year at your nine to five job and I earn $100,000 per year from my rental property, who gets to keep more after taxes? You guessed it, my rental property is taxed much lower because the government rewards rental property owners. The government also offers lower tax rates on long-term profits along with other benefits like depreciation and the exclusion of self-employment tax.
- Cash Flow. Not only do real estate investors have the ability to receive a substantial cash flow from steady wholesale or rehab deals, they can also ensure themselves a secure monthly cash flow with rental property deals. The best part about rental property cash flow is the fact that after all of your bills are paid, the extra money is considered a passive income meaning, you get to collect a monthly pay check all the while managing the rest of your investing business.
- Appreciation. While you are paying off the loan of whatever property you invested in, the value of that property is increasing, or appreciating. While things like recessions and market fluctuations are bound to occur, it is safe to say that over an extended period of time, the value of real estate will increase. That being said, any property you purchase today, will be worth far more 30 years from now; however, with a fixed-rate mortgage, you will always be paying the same dollar amount.
- Control. Arguably the greatest benefit of starting a real estate business is the control and pride you feel due to owning something you created. Your destiny is not tied to an office on Wall Street or your company’s CEO, it only belongs to you. Real estate investing puts you and you alone in the drivers seat of your financial future.
It is not advised to jump into the real estate investing world without first properly educating yourself. You must learn the best ways to find deals, how to market yourself, how to negotiate, and of course how to finance deals; however, once you’ve mastered those, you’ll be on your way to maintaining a successful business. So my partners at CT Homes and I put together a comprehensive list of the most common questions for you to study before embarking on your investing journey. Start from the top and work your way down and once you’ve thoroughly analyzed each question, you’re sure to already be ahead of your competition.
When you are finally ready to delve into the world of real estate investing, it is okay to feel anxious and overwhelmed. Starting your first real estate business will be no easy task, but if you do your due diligence and study the answers to these important questions, you are guaranteed to realize success.
- How Do I Make The Leap From Employee To Entrepreneur?
- What Do I have To Do To Be A Successful Entrepreneur?
- How Do I Know If It’s The Right Time To Start My Business?
- How Important Is My Real Estate Education?
- What Are The First Steps I Should Take To Get My Investing Career Started?
- How Do I Draft The Perfect Business Plan?
- Who Do I Need In My Real Estate Investing Network?
- How Can I Expand My Investing Network?
- How Do I Choose A Name For My Business?
- What Investing Strategy Will Best Suit Me And My Business?
- Do I Have To Care About Branding As A Small Business?
- How Do I Finance My Deals?
- Is There A Way To Fast Track My Real Estate Career?
- What Is The Best Way To Structure My New Business?
- How Do I Craft The Perfect Offer?
- How Much Does It Cost To Wholesale Or “Prehab” A Property?
- How Much Does It Cost To Rehab Or Rent A Property?
- What Are The Best Investing Strategies Of 2016?
Were these resources helpful for those looking to start their businesses? Or do you have any additional resources to add to this list that may be helpful for other new investors? Share below: