Starting A Real Estate Business

It seems like everyone owns a business now a days. In fact are you even cool if you don't have one? Well the answer is yes you are, but if you feel you are in that percentage that wants to build a business here are some things to consider.

First of all, close to 80% of businesses eventually fail. This is the unfortunate truth. It is important to dig deep and see if you are the type of person who wants to run a business long term. Are you willing to work 80 hour weeks? Are you willing to stop spending money on things you enjoy? Are you willing to take some losses in the process to learn? If you answered yes to these, you just might be ready to start a real estate business in Pittsburgh.

Here are some of the steps.

1. Incorporation: When it comes to business, there are multiple ways to structure your company. You can work as a sole proprietor or partnership where you hold the liability yourself. You can create a corporation where shareholders are not liable for the company as well as LLCs where members do not hold personal liability. Lastly are limited partnerships where there is a general partner that holds the liability, and limited partners that are essentially silent partners. Always consult with an attorney before choosing your business type as we are not attorneys or accountants.

2. Funding: Next you need some capital. You've figured out how you want to structure the business in Pittsburgh, but you need money to make it grow. With real estate this includes a sizable amount of capital. You can do this through debt or equity. Debt would include getting loans on the property either through private financing or a financial institution. You can also give out equity where an investor will use cash to purchase a property, and receive a stake in your business or the property you are buying.

3. Property Type: When you receive capital to help your business grow, you need to know where to put it! That comes to market research as well as the business model you want to implement. If you like the idea of slow growth with income, you should encourage the team to purchase rental properties. If the goal is to take some added risk to obtain some larger potential gains than look into flipping properties in Pittsburgh.

4. Marketing: Now that we know what to target, we have to generate some leads. This is the time to put together a marketing campaign to find the properties you feel fit your business model. This can be done through google ads, social media ads, direct mailing campaigns, talking to brokers, as well as through referrals. Find who and what strategy can help bring in the leads you are seeking. The goal is to find the lowest cost way to generate people who want to sell their house for cash in Pittsburgh.

Now that your real estate business is up and running, you have to reinvest! Make sure to utilize those profits to expand, add more marketing, pay down debts, anything that can help you boost your growth. This process done consistently and conservatively should put you in a place to run a very successful real estate company.