Epic Real Estate Investing - The Basic Foundation of a Real Estate Investing Business | 554

Episode Date: December 28, 2018

If you wish to start a business but you are not sure what it takes to establish it, stay with us because, today, we are giving you the basic foundation of a real estate investing business that will set you up for success. Learn how to reach your financial independence quickly, how to set up a legal entity, and why you should pay yourself first. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, Rockstar, I'm Matt here at Epic Real Estate, and you know, you can't build a strong building without a strong foundation, nor can you build a strong real estate investing business without a strong foundation as well. So let's go ahead and discuss what does it take. What are the basics of building a strong foundation for your business? We're going to cover that today on this episode, Financial Freedom Friday. All righty, so I just got off the phone with a brand new art. REIA's client. We just had his introductory call. We did his little intake call. We're setting everything up for him. He's going to be in about 10 days to launch his real estate investing business.

And so we're doing all that for him. But he asked, what can I do between now and then to be prepared? What should I be doing? And so I gave him some ideas of what he could look at right now, even though we're doing so much of this for him already. But the things that he can do all have to do with setting up the foundation of his real estate investing business. So we're going to be a lot of So number one was, come in to your business right from the beginning with a mindset on income. Right? People come into real estate thinking they're going to make giant piles of cash or that's their intent to make piles of cash. And that's going to happen.

You're going to make money in real estate. But really come in with a mindset on income. Come in with that being your focus because it really is. It's just the fastest way to your financial independence, even if it's not the most excited. It is the fastest path. And because it's the fastest path, I think that's pretty exciting. So that's number one. Number two, get organized.

And that can be as simple as just clearing out some space at home or maybe even clear out an entire room if you have the ability to do so. And just create your working space. Get all your pens, get your paper, get your phone, get your computer, get all that lined up. And then I would suggest getting really well acquainted with your new CRM, a CRM just for your paper. for your real estate investing business, and then meet with your bookkeeper.

Let's get your books organized right from the beginning. If you wait too long to go ahead and meet with the bookkeeper and get your finances all organized, it can be really expensive and really complicated down the road depending on how business goes for you. So I think one of my biggest mistakes ever was not hiring a bookkeeper right from day one. So two, you want to get organized, get a bookkeeper, get your office space set up, get familiar with your CRM and be prepared to go to work on day one. Number three, your legal entity.

It would be a good time to start meeting with your legal advisor, legal counsel, and explains them what type of business you intend to build and get their recommendation on how you should set up your business under what legal entity. Is it an LLC? Is it an S-Corp? Those things are always changing and it depends on what type of business you're going to run and what you want to build and what you want to do. do long term is going to have a big determination on what entity you set up. Now, with that advice, I'm not an attorney, and I'm certainly not here to play one on this video, but you'll get some different types of advice on when you should actually do this.

I don't know, I think it might be even good advice not to even set this up until you start making somebody. You can always set it up retroactively without any penalty. but it is part of the basic foundation of a real estate investing business. So you're going to need an entity. And if you got some free time, go ahead and do the investigating. Just don't let setting up the entity interfere with your productivity at the beginning. All right.

So number four, line up all of your assets. This would be a good time to go and meet with a banker or maybe to go to a big institutional bank. Maybe go to a local bank also and get pre-qualified. See what you're going to have available to you. Look into signature loans. Look into Helox. Maybe you've got it on your primary residence or some other investment property that you have. Look into getting extra credit cards.

Look into all of that stuff and getting your assets lined up. Maybe start even sharing with your network of what you're about to do. For no other reason, just to plant seeds and create the potential of private money down the road when you need it. Because most likely, that's going to be a really good tool for you, especially if you're going to be a buy and hold investor and you're investing for income. Then number five, go right into business with the idea of taking your profit first. I wish I would have done this in the beginning. Most entrepreneurs, sadly, go in and they make some money, they're making things happen,

and they bring all this money in and they pay all their bills, and at the end of the day, somehow, it just happens, there's very little leftover for them. But if you go in with the idea of taking your profit first, paying yourself first, then paying your bills, you'll find that there's no real sacrifice going on in your business other than you were able to exercise that discipline and you're all the better for it down the road. You know, there's a really good book I bought at the beginning of this year called Profit First, Mike Mishluitz. And he was on the podcast. I got to interview him. I have no affiliation with him whatsoever. But there are a few transformational books that you'll come across.

lifetime. One was Rich Dad Poor Dad for me. The other was Awaken the Giant Within. The third one was the slight edge. And those have been my top three for a really long time. And if I had to squeeze this one up in there, I absolutely would. Profit First, it's made such a huge difference in my life and my finances, just my sleep and my peace at night. Check this book out. Okay? And what it does is it sets up everything in an automated format, sets up different bank accounts and everything just when money comes in. It all gets dispersed in the appropriate place. And it does. doesn't leave you out of that equation. All right, so the basic foundation of a real estate investing business, we've got these five,

invest for income, come in with that income mindset, get your business organized, get your your workspace organized, go ahead and start investigating and potentially even set up your legal entity right away, line up all of your assets, everything that you're going to be able to use and deploy when you're out there and you find those great investments. And five profit first, pay yourself first, pay the bill second. So out of all these, what'd you learn, what'd you notice? If you like what you heard or you know somebody else that would benefit from what you heard today, please feel free to share.

Otherwise, I'll see you next week on another episode of Financial Freedom Friday. Take care. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.