How To Start A Real Estate Investing 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.

Should I Start an LLC?

Starting a Real Estate 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.

One of the main challenges in starting a wholesaling business or any other business is having enough capital, especially when buying real estate properties. There are many ways to find funding (family, angel investors, etc,), but a more traditional route is to secure a business loan. You can learn more about how to build business credit, improve your business's credit score, and apply for a business loan with our business guides.

Recommended: Looking to Build Business Credit? Apply for an easy approval business credit card from BILL and build your business credit quickly.

Below are some guides to help you explore more about how to start and navigate your wholesaling business:

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.

You can find low-cost (distressed), foreclosed properties that are more difficult to find through sites like foreclosure.com to get started with your business. The website’s database updates twice on a daily basis, which will give you access to the most current, local properties on the market. If you have questions, they also have a customer service line with real people to provide you with the help you may need.

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.

Baselane offers a banking platform designed with real estate investors in mind to easily collect revenue, maintain books and file taxes so you can focus on running your real estate investment business.

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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.

Once you form an LLC, you should consider choosing an S corporation tax classification, which can provide you with certain tax advantages. To learn more about these tax benefits, read our guide Why Elect S Corp Tax Status for Your LLC.

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

Select your state to get started: