Andrew Carnegie once famously stated that “Ninety percent of the world’s millionaires become so through owning real estate.” While that grandiose statement, uttered over a hundred years ago, might have been true at the time, the reality in 2022 looks a bit different. Nevertheless, the attitude it embraces reflects a mentality that has enjoyed a certain durability over the course of the following century. Even if originally accurate, today’s millionaires look quite different, with tech driving their wealth through some of the highest glass ceilings (or, through the furthest reaches of space … ahem, Jeff Bezos) seen to date. And yet, real estate maintains a steady presence in the portfolios of the rich and famous.
Combine that continued property investment potential with a push in pop culture to glamorize the real estate industry, particularly the luxury side of it, with Netflix shows that place real estate agents at the center of their own dramatized reality tv universe, and a carefully crafted image emerges. Whatever time of day they choose to sell, the perception that wealth and real estate remain inextricably connected goes on full display in an exclusive community adorned by designer clothes, expensive cars, and the (not quite) finest, company-labelled wines the Oppenheim Group can muster.
All wine jokes aside though, it is possible, though far from easy, to build your own real estate empire. It requires time, but takes just one small investment to start. Like any investment, real estate carries risks, but if you choose to rent your properties and launch your own business, it can become a profitable, long-term decision.
Read on to learn how to build a real estate empire and maximize your investments over time.
Related to How to Build a Real Estate Empire: What to Do Before Starting a Career in Real Estate
Learn How to Build a Real Estate Empire
Start an LLC
A Limited Liability Corporation protects you, the owner of the property. This initial step prevents tenants from filing a lawsuit against you. For instance, if someone hurts themselves at one of your properties, an LLC would protect your personal assets from legal action.
It can also provide liability protection in the case of a financial dispute, and it gives your business a more professional appearance to the public. Find out more about forming an LLC for your real estate business before you get going.
Invest in Real Estate
Invest in a few properties on your own before you consider using real estate investors, especially as a first-time buyer. Using your own money ensures that you have a vested interest in how the deal turns out. Once you have a few deals under your belt, and a few success stories, you can decide whether to start working with a real estate investor to grow your business quicker.
When you own real estate, you qualify for certain tax benefits, such as deductions for relevant expenses. These benefits mean that property taxes, property insurance, mortgage interest, property management fees, and the costs to maintain and repair the building are all tax deductible.
You can also take advantage of capital gains, depreciate costs over time, and use pass through deductions. There are ways to structure your real estate business to save as much money as possible on your taxes in the long run.
Build a Qualified Real Estate Team
You can’t do everything on your own. When you acquire real estate property, you need to keep it in the best condition possible. Hire only the best realtors, property managers, handymen, electricians, plumbers, or anyone else who may contribute to maintaining your property. The people who perform these functions serve as extensions of your business. As you grow your business, you may end up needing their help with multiple locations.
Good marketing can attract the right types of sellers, buyers, or renters so that you can improve your portfolio and grow your business. Every business must have an attractive , professional website to survive in today’s market. And, with so many free tools available for online marketing, you have the most effective marketing resources already at your fingertips, if you know how to leverage them properly. Take the time to learn about each social media platform and direct your efforts where they’ll have the greatest potential to reach your target audience.
Business cards can add a layer of professionalism to in-person interactions with potential partners and clients. Print brochures, direct mail pieces, and other marketing collateral can also get the word out about your real estate business.
Need Some Real Estate Experience Before Starting Your Own Business? Consider Joining AptAmigo!
Not ready to start your own business quite yet? If you prefer to gain some hands-on real estate experience before crafting your business plan, consider AptAmigo, the best place to start and build a real estate career. Our agents help clients find luxury apartments in major cities across the US. We might not have our own tv show, but we do sometimes sell sunsets.
AptAmigo is proud to be an equal opportunity workplace and does not discriminate based on race, religious creed, color, national origin, ancestry, genetic information, physical or mental disability, medical condition, marital status, gender, age, sexual orientation, gender identity, veteran status, or any other characteristic protected by applicable law, in connection with any aspect of employment at AptAmigo.