How to Start a Real Estate Investment Business

Investing in Real Estate can be a lucrative and rewarding business. From wholesaling to buying and renting real estate — finding the right real estate investment opportunity for you is a great way to add supplemental income or parlay into becoming your sole income.


Should I Start a Real Estate Investment Business?

If you are looking for a business you can start from home that will put your problem-solving skills to the test and provide the potential for a high return on investment — a Real Estate Investment business could be exactly the business opportunity you’re looking for. Real Estate Investment strategies vary depending on the type, offering a different strategy for your unique skill set and the amount of funding you have available.

A cube with LLC printed on its sides

Should I Start an LLC?

Starting an LLC offers personal liability protection and favorable tax treatment making it a great business structure for your new business.

What are the Different Types of Real Estate Investment Strategies?

Real Estate Investing involves purchasing property — whether it is a house, commercial property, or land — to sell or lease. There are many types of real estate investing strategies, all with varying processes and requirements to start. Many of these strategies can be done with little to no initial funding. Below are the most common real estate investment strategies:

Wholesaling

A real estate wholesaling business buys off-market properties at a deep discount with the intention of selling or assigning the property to another real estate investor. This is a service-based business that will put your problem solving and creative thinking skills to the test.

Buy and Flip

Buying and flipping houses, when done correctly, can yield a high return on investment compared to other real estate investments such as wholesaling. This type of real estate investing can supplement your current income or replace it entirely.

Buy and Rent

A buy and rent real estate business acquires property at a discounted price with the intention to rehabilitate and rent the property. The goal of starting a buy and rent real estate business is to generate a monthly passive income that requires little effort to maintain successfully.

Other Types of Real Estate Investing

While the investment strategies listed above are a great starting point for a real estate investment business, there are many other options as well.

  • Real Estate Investment Trusts (REITs)
  • Commercial Real Estate
  • Buy Raw Land
  • Industrial Real Estate
  • Mixed-Use Real Estate
  • Retail Real Estate
  • Real Estate Crowdfunding

Should I Start an LLC for my Real Estate Business?

There are several reasons for starting a Limited Liability Company (LLC) which can be beneficial when starting a Real Estate Business. LLCs are both easy to start and to maintain — making them ideal for both new and experienced business owners. Additionally, forming an LLC provides personal asset protection and increased credibility.

Forming your LLC is easily done in five steps using our state-by-state guides. However, if you'd rather have a professional service form your LLC for you, read our guide to the Best LLC Services.

Additional resources for starting your Real Estate Businesses LLC are our Free LLC Operating Agreement Template, our LLC Tax Guide, and information about Small Business Insurance.

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