Real estate business is one of the most profitable businesses to venture into and as much as it can be a very good business idea to venture into, there are factors to consider before venturing into it.
Hi everyone my name is Timileyin and in this article i will be sharing with you guys and ladies 4 basic steps for succeeding in real estate business.
Before i get into the steps, there are some things you need to know about that can also assist you when going through the whole process of setting up your business.
Building a successful real estate business entails that you build and expand your portfolio as an entrepreneur and as a business.
You can begin by doing the basic stuffs like living within your means, doing a little upgrade when and where necessary.
This type of business can be done as a side hustle like a passive income strategy.
With the right things in place which i will be discussing shortly you can get this done passively.
As a matter of fact a couple of big time entrepreneurs implement this approach.
Below are the steps to follow
Get started on your real estate business with a fixer upper
The most important thing about your business is the product itself which in this case are the buildings you have at your disposal.
When you have a building or a property that is a fixer upper, ensure you work on it personally and when you’re done you can sell it off due to it’s already added value but while doing this endeavor to check that this doesn’t cost more than your mortgage payment.
To get started in real estate with an fixer upper, most often than not you will have to take a loan for this purchase and while selecting the property to buy select one that has the potential of more work to still be done on it so you can out some level of ownership on it.
Some of the potential areas for more work to be done could include the plumbering system, interior decoration, air conditioning and a lot more .
Progress to the following one
Let’s say you bought the property for about $100 and you made some improvements on it which costed for about $500 then you sold your property after a couple of years and get your profit from it.
The $400 you made from it can be reinvested in ways suitable to you either to use part if the money to do the whole process all over again and the rest to acquire a rental property or reinvest the whole thing back in another strategy you know of, it all depends on you.
Let’s assume you followed the first suggestion i made in the last paragraph of the previous step, where you buy a property and furnish it then sell again and use the remaining money to acquire a rental property.
Once you do this consistently and repeatedly, you will realize that your status as a real estate owner will improve and you can make your first million in no time.
Seeing this first, you may be wondering what i meant by that title, as a real estate owner, after you have done this cycle of buying improving and selling off your property with some equity on it and also having a rental property, a couple of advantages are accrue to it.
You can introduce the primary-residence exemption which allows you as much as $500000 gains on the sale every two years but the only cut is that you must have also lived in that building for two years.
Buying a property, refurbishing it then then selling it gives you profit but note that the amount of money invested to improve the quality of the property is tax-free which gives you the opportunity to reinvest the cash and do this all over again and making a lot of money from it.
It is advisable to place your taxes on your rental property instead of the property you are improving due to it’s long term effects based on the recent policies placed on tax.
The process of getting to the top in this business is not an easy road so you have to be determined from the very beginning to make the necessary sacrifice for you to reach that top
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