This series is going to be dedicated to teaching you how to start a Real Estate Investment business (AKA House Flipping Business) from the ground up……and since I have successfully built one of the largest House Flipping businesses in my market of Portland, I think that should be a pretty good reason for you to keep reading and put this valuable information to work! This is one of the greatest businesses on earth, and to be successful doing something this great is one of the best feelings you can experience in life. On the flip side however, getting your Real Estate Investing business off the ground and then building a successful business that lasts can be very difficult…..especially when you are trying to accomplish everything on your own without the help of a mentor or business coach. So in an effort to give out some SUPER VALUABLE free content to our Real Dealz followers I am going to go through everything you need to do, in order to build your your very own Real Estate Investing business. This will be a three part series dedicated to getting you off the couch and ultimately running a hugely successful Real Estate Investing business…….so here we go!
The first question that everyone asks themselves when they get into real estate investing is…..what do I do first? Well here is the answer….set up a company! I have read articles from a lot of Gurus who say don’t worry about it until you flip a deal or two….well I say BS! You have to treat Real Estate Investing just like you would be starting any other type of business, and there is no way in hell you would start any other type of business without actually setting up a company first. So the next step is going to be picking a company name…..now this is actually a very important step, so give it some thought. Pick something that people will remember and that will allow you to stand out from your competition. My companies all start with TTM, and the reason for that is because its easy for people to remember (and its my initials of course). Now when you are first starting out using a straight LLC is going to be just fine since they are rather simple and cheap to set up. After you have been in business for a year or so and are making profits, I would then suggest having your accountant file for the S-Corp election. This will allow you to ultimately save a lot of money on your taxes….but consult with your CPA before doing so.
The next step once you have decided on a business name is to get yourself a logo made along with some business cards and letterhead. You may be thinking isn’t this a little much this early in the game? Absolutely not…..you expect this whole real estate thing to work right? Well then treat it that way and build it like a real business. Next get yourself a facebook business page and/or website along with a YouTube channel (which is basically another free webpage that can be found in the search engines) so that motivated sellers can find you even if you aren’t marketing for them yet. Setting up a facebook page & YouTube Channel will take you all of about 10 minutes, and then BAM you have an instant web presence that you can build off of. Eventually you will want to build an actual website if you don’t do it from the get go, but starting with a facebook page and YouTube Channel is just fine. Lastly you are going to need a business email that matches your business name & phone system of sorts in order to communicate with the rest of world. For email the easiest way to get one set up would be using Gmail…..you can easily pick your address so that it matches your company name, which will make you look professional. There is nothing worse than trying to do business with some goofy email address that people either cant remember or laugh at every time you give it out. I would then suggest that you get two phone lines: the first being your business cell phone, which you give out to those who you have already spoken with in the past. The second would be a message line that is simply in place as basically an office line where people can leave a message. You may not start out marketing to the general public, but when you do you will need a message phone line like this for them to call and respond to your marketing. You definitely don’t want to send out 5,000 direct mail pieces with your cell phone number on it for a couple reasons. The first is that your phone will likely be ringing non stop at all hours of the day and night, and secondly you want to be in a good place when you actually talk with motivated sellers…..and that good place is not changing lanes driving down the freeway!
So that is where we are going to call it quits for the first installment of this series on building your real estate biz. If you are thinking about getting into the House Flipping Business, then start by putting together the few items that I have listed in this article. In the next post we are going to go through how you should start out actually looking for deals as well as getting educated on what your doing. So stay tuned…..and until next time put this information to work and make sure to listen to The Real Dealz Podcast to learn more great tips!
March 5, 2014
Great article Tucker. I’m starting out with the logo/letterhead/business card/website as you suggested as I’m going to start my marketing to probate properties and attorneys and want to come across as professional from the get go.
March 5, 2014