Real Estate Investing
Warren Buffet is credited with saying “ Investment is most intelligent when most business like”. With the experience I developed over the years, I believe this is a very wise statement. So what does this mean to me in my Real Estate Investing business? Should I be investing as a business? What does that mean? How do I know I am investing in a business like manner?
“Businesslike” investing suggests a less emotional, better organized, well thought out approach to real estate. Definitions of ‘business’ can range from describing a profession, to commerce and trade, to an actual company. It could mean running a real estate company of some type, owning an investment (which is distinctly different from managing one), or just being more businesslike in every day investment and real estate decisions.
There are many practical benefits of taking a business approach to real estate including:
• Scalability
• Better true investment decisions
• More profitable investment moves
• Efficiency in organization
• Separating personal from investment finances, assets, and income
• Building substantial additional value within a business entity
• Tax reduction
• More free time
I don’t envision building an international conglomerate but rather a small company focused on Real Estate Investing. I won’t need a large office, hundreds of staff and go back to wearing uncomfortable suits again. However, I still want the attributes listed above.
There ought to be businesslike characteristics regardless of size. For my business, this includes incorporation and forming a registered business entity, obtaining business credit and bank accounts, setting up a new business phone number, hiring professional vendors to help out, and having a real estate website.
I am a small company but every type of property is open to Real Estate Investing .
These may include:
• Single-family homes
• Small multifamily properties like duplexes, triplexes, and 4 units properties
• Apartment buildings
• Office buildings
• Industrial real estate
• Hotels
• Retail property
• Vacant land and lots
The same goes for Real Estate Investing strategy. Virtually any Real Estate investing (REI) strategy can be formalized and systemized to create a business model.
These REI strategies include:
• Wholesaling houses
• Renovating and selling homes
• Acquiring and holding income generating rental properties
• Commercial real estate investing
• Mortgage debt investing and note investing
• Private mortgage lending
• Buying, selling and leasing various real estate related rights
• New construction
I may have little experience in starting and running a Real Estate Investing business. I have plenty of business experience but not Real Estate Investing experience. So where can I find help in investing more intelligently, and building a real estate business which can produce better returns, and build more wealth over the long term?
I looked long and hard to find an organized real estate course with a proven system that has synergy with my big picture goals. I sought out a mentor and coaching program which actually offers business building help which combines both real estate and business.
I started this journey of full time Real Estate Investing and running a real estate investment business. I know I will benefit from taking a more businesslike and smarter approach to investment. With the addition of a coach and mentor, this will provide the best results with the lowest risk.