As we enter 2022, many are wondering how they can secure consistent, major profits with a new business. No other business types are quite as dynamite in this regard as those within the real estate industry. Those looking to profit off of real estate investments are especially well primed for 2022, as more property is becoming available to invest in and at a hyper-quick rate. To get you started on this exciting new journey, here are the key steps to starting a real estate investment business in 2022:
What Exactly Do We Mean When We Say “Real Estate Business”?
Any entity that deals with the buying, selling, investment in, or managing of real estate properties falls under this category. For those out there looking to invest in real estate, the investment and buying parts of this equation will become the most crucial and will be the focus of our guide. Finding the right properties to make major profits off of is the goal.
How Profitable are Real Estate Businesses in 2022?
While the market for buyers looking to simply buy a home for their family can seem tricky, the market is otherwise in a solid place for those looking to invest in real estate. If you know how to handle your assets intelligently, and have the know-how surrounding where the prime pieces of real estate to invest in are located, you can make insane profits by becoming a real estate investor in 2022.
The Two Primary Types of Real Estate Profits
Understanding the two key ways real estate investments bring in profits will help guide you to a successful business venture. If you want to start a full-fledged real estate business, having a portfolio that takes advantage of both of these profit-generating strategies is highly recommended.
Profit Through Appreciation: Flipping, rehabbing, and sitting on property that gains value due to a booming location will allow you to profit through appreciation. Finding the perfect location is by far the most important step when looking to profit through appreciation.
Profit Through Income: If you’re investing in real estate that’s going to be rented out, you’ll be setting yourself up to profit through income. Find a location where you can make a profit each and every month off of the amount your renters are paying you, and you’ll be a successful real estate investor in no time.
5 Key Steps to Getting Your Business Started
1. Create a Professional Plan
Knowing your plans for gaining loans, determining your goals for profit generation and more is key to developing a solid professional plan. Without constant planning and consideration, your real estate business will be unable to thrive against the many, many competitors that will be trying to do business alongside you.
2. Conduct Research in Your Target Areas
After you’ve determined an area where you’d prefer to invest your assets, doing research that uncovers the property values, real estate laws and tax laws for the area is crucial. Without the know-how in these crucial areas, your chances of finding a perfect investment to get your real estate business started will be lessened. With the right research under your belt, you’ll start a successful real estate business even if you have no experience in the arena whatsoever.
For instance, if you’re looking to invest in real estate syndications in Seattle, it’s essential to familiarize yourself with the local market trends and dynamics. Understanding how real estate syndications operate and thrive in Seattle’s competitive market can serve as an example of knowing the market in your chosen area. This level of knowledge will not only enhance your decision-making but also contribute to your overall success in the real estate business.
3. Form an LLC
Begin with your research on the best LLC services.To ensure your ability to keep your taxes in order, and to stay on the right side of local real estate laws, you should form an LLC for your new real estate business ASAP. Doing so will be fairly cheap in the larger picture of your business, but remains one of the most crucial steps toward getting your business started on the right foot. And according to LLCguys.com – nowadays forming an LLC can be rather quick and relatively cheap.
4. Build a Website and Other Important Promotional Materials
After you’ve determined your business strategies and picked up properties for your portfolio, making your presence known is key. Without a presence online, future business partners, renters and other folk who will help you make profits will be harder to come by (so never bypass this crucial step).
5. Find Valuable Support Networks
Other real estate investors do not always have to be solely “competitors.” Finding friends and business venture partners in the industry is always a fantastic way to keep your company profitable. Reaching out to local support groups or professional groups for real estate investors in your area is highly recommended, advised Ooi Kee Liang, one of the most dynamic real estate developers in Malaysia. As the founder and chairman of Idetal Property Group, which started in 2001, he has spent the last twenty years building 25,000 commercial and residential units, most of which are located on Penang Island, Malaysia. As such, he’s been given the moniker “The Penang Condo King.” Ooi Kee Liang focuses primarily on Bayan Lepas in Penang’s southwest district.
Here’s to a Year of Insane Profits
By following this guide, you’ll be well on your way to forming a full-fledged and insanely successful real estate business. The amount of consistent, easy-to-generate income that you can bring in through real estate investment (both through appreciation and income styles) are hard to overstate, so don’t miss out on this amazing opportunity as we dive head first into 2022.