When I talk to people about getting into the real estate investing business, there is usually one of two responses: “I could do that!” and “I would like to do that.” Honestly, while I like the enthusiasm and confidence in the first response, I think the second person—one who wants to learn more and make a smart decision—has a better chance of success.
You probably know that you want to make a change in your life. You might be wondering how to protect your future while becoming your own boss. You’re likely curious about the possibilities in real estate investing. You’ve come to the right place.
There’s a lot to consider when wondering if the real estate business is right for you. But the important thing is to ask the right questions and find the right answers. Then, you can see if you are ready to take the next step.
Let’s explore the answers to some questions you might have.
Is It a Good Idea To Buy a Franchise?
Starting your own business can be a challenge. That’s why people often decide to invest in a franchise. Getting a franchise means banking on a name. You have brand equity on your side. You also have a good amount of support. You have a set structure that you can rely on.
Of course, not every franchise is the same. There are some franchises that have so many standards and so many rules that you are basically working for someone else as opposed to being your own boss. Other franchises have so little support that you may feel forced to be out on your own. There are people who thrive at either extreme, and there are people who want support and freedom.
Looking into franchises is a good way at starting your journey.
What Kind of Businesses Can Help Me Weather a Recession?
There are several kinds of businesses that thrive no matter what the economic conditions. Certain types of food service businesses will always be there. Auto repair is pretty consistent. And in a time of enhanced cleaning protocol, sanitation services are thriving.
Another great business in a recession is real estate investing. That’s because in times of economic challenge, there will likely be more houses coming on the market, and more people looking to sell fast for cash. Not all of these will be great properties, but they can be great opportunities.
For the smart real estate investor, times of uncertainty can offer great promise.
Is Real Estate Investing a Good Career Move for Me?
Having a real estate investing business isn’t easy. Here are some things about the industry that you should consider:
- There are no guarantees. There is risk in everything.
- The rewards can be very exciting.
- It is rarely, if ever, a get-rich-quick option. It is about a gradual growth of earnings.
- There can be high stress.
- There can also be incredibly fun times.
- You’re always going to be growing and learning.
Real estate investing isn’t for everyone. But it could be an incredible career for the right person with the right mindset.
What Do I Need To Know To Start My Real Estate Business?
A career in real estate investing isn’t something you want to enter into lightly. It’s a lot of work, whether you do it full-time or on the side. You can’t just decide that you want to start buying and selling houses. You have to have a real plan. Some components of this include:
- Do I want to fix-and-flip, wholesale, or buy a rental property?
- Am I doing this full-time or on the side?
- Am I working by myself or with partners?
- What is my exit strategy?
- How much debt am I willing to take on?
- How am I going to get financing?
- Do I need a lawyer on retainer?
- What kind of houses do I want to buy?
- What is my geographic area?
- Do I know all of the relevant laws for compliance?
Having answers to these questions stops you from just going around aimlessly. It gives you a needed focus.
What Are Some Good (and Bad) Ways To Learn About Real Estate?
Pretty much anywhere you turn to for real estate investing advice there will be people saying they have the secret to success. There are hundreds and thousands of YouTube Channels. There are television shows about people with unlimited budgets flipping houses. And, I bet you can’t walk into an airport hotel without seeing a “real estate guru”.
Sure, you can learn from all of these outlets. But they shouldn’t be solely relied upon. A lot of these systems make money the more you buy into them.
I always recommend learning from people who are active in the industry. This could be real estate investing clubs, professional training, or even dedicated mentorship. You decide which approach caters to your needs.
How Can I Set Up My Business the Right Way?
Have acceptable losses.
Have a plan.
And, have an additional plan for what you’re going to do when things don’t go as originally planned. Be ready to be flexible without losing sight of your goals.
Most importantly, set yourself up for success. Decide if there is a franchise that is going to work for you. Find the best mentorship and training. Seek out the best tools and technology that will help you understand the legal and financial aspects of the business. Don’t jump in the deep end without testing the water.
You can do this. You just have to know what it takes to get started.
The Best Way To Start a Real Estate Investing Business
Investing is all about putting down some money now with the belief that it will pay off later. When you are starting your own business, you are investing in yourself. You are looking for that return. The best investment I made was in an independently owned and operated HomeVestors® franchise.
As a franchisee, I have access to some of the best-in-class tools and technology which help me manage leads, access loans, and run complicated property valuations. And of course, I can leverage a nationally-known marketing advantage to get great leads. Sure, I have to close deals on the leads, but having great ones delivered to me makes a ton of difference.
When you combine this with the incredible training and ongoing mentorship from working professionals, it seems ideal for someone new to the business. It might not be for people who already think they know everything. But it is for people who believe in themselves and are ready to take a step forward in their career.
If you’re considering starting a real estate investing business, request information about becoming a franchisee today.
Each franchise office is independently owned and operated.