One of our first blog posts back in April 2015, Real Estate Investing As A Business, covered investing in real estate as a business. We want to revisit that blog post. We now have over three years experience operating as Styl Properties, Inc. and we have endeavored to follow Warren Buffett’s advice.
As we said back then, “Those that want the best results, with the lowest risk, and see the value in fast-tracking to their goals, while avoiding the pitfalls will see the wisdom in educating themselves on this approach to investing and will incorporate the best elements to suit their personal goals and aspirations.”
If investing is better when conducted most business like, does it mean that more real estate investors ought to be investing in a more businesslike fashion? Should every real estate investor be investing as a business? What does that really mean? What does it look like? Does that limit the types of properties and strategies that can be applied? Where can help and support be found for building a more businesslike property portfolio?
“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. All of these definitions likely influence Warren Buffett’s decision to be more businesslike in investing. It has certainly worked for him, and for his own prized real estate investments, and real estate companies. 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 everyday investment and real estate decisions.
There are many practical benefits of taking a business approach to real estate including:
Not everyone envisions building a company and mounting an international conglomerate when they get interested in investing in real estate. So will you need an office, hundreds of staff, and have to go back to wearing uncomfortable suits again?
Many simply want to generate some extra income, and perhaps build more wealth over the long run. Others aspire to build multinational real estate empires. Yet, what we are really talking about here is approaching investment with a businesslike mentality, and structure. Even for those wishing to go really big, most will find they can now operate a multi-million dollar company from their patios via their smartphones.
However, there ought to be businesslike characteristics regardless of size. This may include 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.
Not all will incorporate as a C Corp or LLC. Regardless, of which entity type is chosen, or none is used, every type of property is open to investment.
This may include:
The same goes for real estate investment strategy. Virtually any real estate investing strategy can be formalized and systemized to create a business model.
These REI strategies include:
The majority of new real estate investors may have very little experience in starting and running a real business. So where can they 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?
Simply relying on out of date books, and trolling online real estate forums is not suitable for investors that want to invest intelligently and businesslike. Look for an organized real estate course and proven system that has synergy with your big picture goals. Build on this by seeking out a mentor or coaching program which actually offers business-building help, or combines both real estate and business.
Certainly, not all investors want to or are suited to full time investing, or even running a real estate investment business. There is nothing wrong with that. Yet, all can benefit from taking a more businesslike and smarter approach to investment. This applies whether simply renting out your old home, flipping one or two houses a year, or investing capital in real estate startups.
Those that want the best results, with the lowest risk, and see the value in fast-tracking to their goals, while avoiding the pitfalls will see the wisdom in educating themselves on this approach to investing and will incorporate the best elements to suit their personal goals and aspirations.
– Since we wrote this blog post. Mongolian Properties has also written A Guide to Real Estate Investing.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast.
Give us a ring. We would be more than happy to help you understand the process and to get all of your questions answered.
You can reach us at 402 999.0577.