How to Start a Real Estate Investment Company?
How to start real estate investment company with no money? Is it even possible?
It is one of the best and quickest money making ideas if you HAVE MONEY. What if you don’t? So what do I do in that case?
- Move around, get some knowledge of profitable properties for sale.
- Make a sheet, pick up the phone and call the investors.
- Give your best to increase your list of available real estate investments.
- Keep pitching ideas to new investors.
- It’s hard but in a year you will be making more than any of your part time job fellas.
I do have some savings:
In that case, there is some hassle to take care of legal formalities, but it will be worth it if you are willing to keep on working without even the slight chance of giving up anytime soon.
Best way to deal with LEGAL FORMALITIES
It’s a good idea to form LLC (limited liability company). As the name suggests, forming an LLC would safeguard you in a lot of situations.
Steps included to form an LLC are as follows:
- Choose a name for your company. It should be something Authoritative
- File Articles of Association
- Create an LLC Agreement
- Get License and Permits
You should further check with local authorities in your country of residence. These days many lawyers are tempted to provide these services for a minimal fee. You can check your local ad listing website or Google
“Register your company online” followed by “Online” or “Craigslist” or your local ads site. I am sure you will easily find someone to complete all these steps for you.
Once you have registered your company, congratulations you don’t have to pay commission to anyone. Instead, you will be getting paid some for every customer your find for properties on sale or rent.
In this case, you have to consistently build your portfolio of investors and happy buyers.
I can afford some investment:
You have 2 options to decide
- Are you going to just buy the house and sell it for profit after doing some renovation?
- Are you going to buy and hold for the long term until prices are significantly higher?
Buying and Selling for Profit
In case 1, here are the things you should avoid
- Not understanding the market demand
- Spending more than required on renovations
- Selling in a hurry
You should make a very clear picture in your mind. It’s not just 1 or 2 homes you are going to renovate and just re-sell. Divide your budget into at-least 5 different homes in different locations.
Search for best property:
Do your homework, trust me it pays off. All those meetings, all that time you wander around a particular area is not going to be wasted. You will cash every moment eventually.
This is perhaps the most important aspect of this business. Not only making your own investments fruitful but also if you are thinking big, thinking about gaining investors. You wanna make a historical portfolio, don’t you?
Long Term Investment:
90% of Real Estate experts advise that
If you are making money on the go, and have a healthy savings account, buy a property instead and enjoy its rentals. Let them make money for you while you sleep.
These kind of investments are more dependable in general. Risk level decreases significantly in holding a property for the long term.
Real Estate Financing Methods:
It would be a good idea to make few referrals who can vouch for you. People who can help you get investors trust. Get a Website Online and showcase your work. Trust me it would make your life a lot easier.
Even if you are just getting started. You need a complete and thorough business plan to pitch to the right investor at the right time. If you want someone to hand over their $$$ you need every piece of evidence that he will make $$$+$
To get around, search for profitable investment opportunities, get a list of prospective buyers who could possibly be buying your house and get in touch with people who can invest.
Oh and Don’t fill in every piece of the puzzle while pitching to the new investor. Make sure no one steals your plan and make a direct investment. 😉 For example, if you are preparing a presentation for a person sitting on the 10th floor of the office he owns, skip the exact names of potential buyers. List their occupation, their age, and their wealth status instead.
If you have successfully sold a home or 2 in a short span of time with strategy #1. It might be a good idea to try your luck with a business loan. You will find many companies willing to handover $50,000+
IIf there is anyone around in your social circle, a friend or someone in the family. They are the best and should be most preferable funding partners of your business. Why? Just in case, things go wrong. You won’t have to lose your home furniture to get out of loans. You won’t go broke. He might understand, and realize a better profit after a particular time.
Frequently Asked Questions:
I hope by now you have got an idea of how to work things out if you are just getting started on real estate investment company. Have a look at what people just like you want to know about starting a Real Estate investment company:
Real Estate investment company complete business plan.
Click Here to Download complete business plan pdf for starting a real estate investment company for complete newbies. It includes
- Gaining investors to build up your portfolio
- What to expect while starting such business
- Basics of getting your buyer
- How to perfectly pitch your real estate to buyers
- Where to find seller
- Necessary steps to approach seller
- Defining a contract
- Realizing the time period for making profit
What does a Real Estate Investment firm do?
Real Estate investment firm buys and sells properties to investors and takes care of all the formalities including legal formalities and property maintenance. Buyers pay a commission for these services and enjoy the rest of profit.
Real Estate Investment Companies Names:
Here you will find a complete list of Real Estate Investment companies in US
How to find a creative business name for the real estate investment company?
Best idea would be to google business name generate and put in your own name, or your State name and trying out different combinations.