Real Estate Investing Blog

When you are ready to get started in real estate estate investment - when you know that real estate investing is going to be the key to your long term financial success - there are a few things that you are going to need to do. Now obviously, you are going to be looking for properties or land or even investment partners, but even those key elements come later.

1. You need to have set up a company. The process for this will be different from state to state and you’re going to need to be sure that you choose the right format, but before you can get started with a business you need to have a business.
2. You should find an accountant. Real estate taxes can be tricky enough for those who are buying a home of their own. Business taxes are tricky enough for those who run a small business. Unless you are an accountant (and, in some cases, even then) it’s essential to work with someone who knows the rules and the ins and outs.
3. You should choose a lawyer. Now, it’s important to look at the fact that you are going to have contracts, you’re going to negotiate contracts and, there may be complications down the road. Someone who understands the law can be a great asset.
4. You need to have a business bank account. While you will be paying yourself out of this account, it’s important to keep your company money in one place and your personal money in another.
5. Along with an accountant and a business bank account, you’ll want to have an accounting system in place. You need to be sure that you know when payments are coming in, when the bills need to be paid and to have a sense that everything is in order.
6. Get business insurance. One of the things that you’re going to need to keep in mind is that things can happen between the time you negotiate a deal. You need to protect yourself.

By knowing what you’re getting into and by taking steps to ensure that you are on top of the process even before you get started, you’ll have a more solid basis for your real estate investment business.

This entry was posted on Friday, April 11th, 2008 at 4:21 pm and is filed under Getting Started. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.