
A real estate investing company is a great home business for individuals and groups of investors to participate in. Start by having a clear and strategic plan to operate from for the best results. Get information from experts and industry leaders about how to successfully run and operate your real estate investment business.
Name and Business Entity
For business purposes, determine which type of entity that you want the real estate investment company to be. Choose from a C Corporation, an LLC or a sub-chapter S corporation, depending upon what kind of tax status it will have. Check with a corporate accountant or attorney for details on how to best structure the business. Choose a name for your business and check with the local State Department or governmental entity that handles registering business names. They will tell you if the name is already taken, in which case you must chose another one.
Type of Business
Decide what real estate investing the company will be involved in, such as commercial or residential, which is usually the logical choice to begin with. Consider purchasing single family homes, apartment buildings and duplexes. Find out what kind of tax and regulation implications exist in your area and what you need to do to conform to them. Do this for every area you will be doing business in. Other factors to consider are buying in healthy markets or those such as tax liens and foreclosures. Some investment strategies include rental income as well as capital appreciation. Ideally, it is good to consider both for maximum return on investment.
Capital
Take a look at your particular capital position, such as how the business will be funded. Consider how to afford the purchases, taxes, property management, and expert fees and costs associated with running the business.
Management Team
Attend real estate functions to establish business relationships with real estate brokers and agents in the regions where your company will operate. Learn about their perspective to find out about the best real estate values. Take heed to avoid the pitfalls of the business as you hear about their experiences.