How To Start A Real Estate Business (2023 Update): Can You Trust The Market?
The real estate industry is one of the finest examples of risk-taking entrepreneurship. It's a dynamic field with high upside, but also carries extreme highs and lows.
Many people are drawn to the industry because it provides an opening to explore new professional avenues, try out a new field, or exercise their entrepreneurial spirit.
In this guide, we'll walk you through what it takes to run a successful real estate business - and whether there are any better alternatives.
Let's dive in!
This Real Estate review has been thoroughly researched with information and testimonials that are available to anyone in the public. Any conclusions drawn by myself are opinions.
- Real estate appreciates
- Ability to earn passive income
- Deductions and tax benefits
- Takes time and effort
- Requires maintenance
Why Listen To UsMy name is Josiah, and this is my Dad, Joel.
Together, we make up the team here at Scamrisk.
If you’ll let me bother you for two minutes, I’d like to quickly explain why I’m even here writing this review.
In early 2020, I had just graduated from college & had no real career prospects.
I knew I was destined for something more, but I had no clue how I was going to make it happen.
I had this sinking feeling in my gut all the time… like the “big man upstairs” had accidentally given me the version of life where I’d be mediocre forever, instead of the one where I was, ya know – happy & fulfilled.
I had fiddled around with some different online businesses in college:
Some random MLMs, a bit of affiliate marketing, a (failed) dropshipping store or two, all the usual suspects.
Even my dad had been involved in MLMs back in the day… selling knives & other random nonsense people (probably) didn’t need.
All I really wanted was to find something that was going to actually work for me.
Maybe those things had worked for others, but for me it all turned up a fat “0” in the bank account department.
So I searched! And searched… and searched… and searched…
And eventually, I somehow stumbled upon a program that promised to help me build an income online (read about it here if you’re curious).
I didn’t really want to be “rich”.
The thought of making a reliable $5K per month & not having to worry about clocking in to a 9-to-5 ever again was all I needed.
Sure, there were people in the program doing high-6 and low-7 figures per year… but that wasn’t what I was out for.
I just wanted to provide freedom for myself, and if I was lucky, take my family along for the ride.
Fast forward a few days and a few phone calls & I was enrolled!
Here’s the first “money making website” I put up:
I built that site in 2020, and it still makes me $1,500 per month. It’s a basic 5 page website I built based on a template the program provides.
The best part to me? My dad and I get to do it all together!
So between the:
Is why I recommend local lead generation as my #1 business model for making money online.
Sure, it takes some work and dedication – but anyone that tells you that there’s a business out there that requires no work is selling you a lemon.
I’m not saying you need to sign up for the same program I did, but I would definitely recommend giving the business model a peek!
Learning how to start a real estate business is an interesting path.
You'll find all kinds of real estate investing training courses, where you’ll likely be exposed to the “Big 3” investing types:
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this guide and go sign up with some program, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about how to start a real estate business, keep reading.
What Is A Real Estate Business?
Real estate refers to any physical structure or plot of land, and the underlying water, mineral, and agricultural resources.
Buildings and homes are also included, as is the vested interest in the property. It's a legal phrase used in countries whose legal systems trace back to English common law.
A real estate business deals in acquiring, resale, and renting land, structures, and other real estate. It is possible for a real estate company to also deal in property management, development, and investment.
However, beginning a career in the real estate industry is not for the faint of heart. It cannot be overstated how unreliable a real estate business model is.
You should allocate significant time to learning about the real estate market and developing a comprehensive real estate business plan, or you risk losing everything.
Real Estate Classifications
- Residential Real Estate: Single-family detached homes, two- and three-family detached homes, four- and five-unit apartment buildings, townhouses, twin homes, and holiday homes.
- Commercial Real Estate: Offices, hotels, malls, strip malls, restaurants, hospitals, schools, and more
- Industrial Real Estate: Warehouses, storage facilities, distribution hubs, factories, and manufacturing.
- Land: Farms, ranches, timberland, and other agricultural properties.
How To Start A Real Estate Business?
There are countless entry points for an aspiring real estate professional, from becoming a real estate agent to investing in rental property, managing a portfolio of properties, or wholesaling and flipping homes.
Set Your Business Goals
Before starting your own real estate business, assess and prioritize your future plans. This could involve considering your personal, professional, and financial goals, which will affect how you start and grow your real estate company.
Ask yourself where you want to be in five, ten, and fifteen years. Next, plan more immediate steps to get there. Real estate investors keep focused and take action with goals.
Conduct In-Depth Research
In-depth industry research identifies a niche, market area, and prospective competitors for a successful business plan. There are various exit plans for any real estate business, and some of them are beginner-friendly.
Before buying properties, many first-time investors choose wholesaling. However, rehabbing or buy-and-hold methods may also work. It is better to study which real estate market is best for your investing specialization.
Choose A Legal Business Structure
Consider the best legal business structure when launching a real estate company. Your chosen structure will determine whether your company satisfies all necessary regulations.
To run your real estate company single-handedly, a sole proprietorship is the best option. There are a lot of real estate agents who work like way.
If you consider opening a real estate brokerage, you may instead choose this organizational form. Both of these will be considered a limited liability company.
Have A Business Plan
A business plan is a thorough map that shows you the path to success.
You need not make elaborate preparations. However, it needs to highlight the most important aspects of your company. There are many free, downloadable examples of one-page business plans online.
Any business investor will want to see your business plan, so it must have all the information a possible investor could want.
Obtain the Appropriate License
Although some states have no requirements for beginning a real estate venture, that isn't always the case. The minimum age and education requirements typically need you to be 18 years old and owning a high school certificate or GED.
Getting a real estate license often begins with completing the required coursework. Preparation for the official licensing test is essential regardless of the real estate business you intend to launch.
Brush Up On Marketing And Branding
Expert branding and creative advertising are the keys to success. Reaching out to consumers requires just a basic knowledge of marketing principles.
Consistency is crucial in the marketing industry. Maintain a uniform brand voice and aesthetic across all mediums you employ in your business's growth.
Given the competitive nature of the real estate market, reaching out to potential clients without using some form of advertising can be challenging.
Set A Budget And Financial Plan
Opening a real estate firm has certain costs, regardless of whether you plan to invest in properties, lots, or land. Compared to a real estate broker or developer, these costs may be low for many real estate agents.
A company plan can help control expenditures by including financial facts and goals. Real estate accounting can be complicated, so you need accounting software to plan, view, and track financial data.
Have Your Business Insured
Protecting your assets against theft and natural disasters is essential when starting a real estate company. A company with adequate business insurance is safe from any unanticipated losses. The policy also covers intellectual property lawsuit damages. Such losses are especially significant for smaller real estate businesses.
Is Real Estate Business Profitable?
The real estate market is quite profitable, so entering this market could be a decent bet if you want to grow wealth and make money.
Profit in the real estate industry is often generated through appreciation - the process of assets' value rising over time. The asset could be a home, a business, or even an empty plot of land.
However, market crashes can and do happen, and they can be devastating.
Is Real Estate Business A Scam?
So, is Real Estate Business a scam? Not technically. You can make money in this field, but it’s definitely not as easy as people make it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and - most importantly - the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months - looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property - and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To Real Estate Business?
Yes, there are plenty of other business models to choose from if you want to pursue this way of making money online. Here are just a few:
- Local Lead Generation
- Digital Real Estate
- Real Estate
- Website Building
What Is My Top Recommendation For Making Money In 2023?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket...even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either...a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like real estate which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.
#1 Business Recommendation
We each make around $10,000 per month with the help of this system.yes, show me more