You’re passionate about your real estate investing , whether that’s flipping or landlording. And maybe you’ve started to make a little money selling these house or cash flowing from rents. So when should you take your real estate investing to the next level and build a real business?
Here are five signs that it’s time to take your real estate investing up a notch.
- You’re Super Busy Doing Deals
You might have started out just searching the MLS every night for the perfect deal, but now you can’t keep up with all the leads from your ads or other investors. If your real estate investing is taking over your world, it might be time to consider doing it full time.
- You’re Making More with Your Real Estate Investing Than Your Job
This is a fantastic sign that you’re ready for business ownership! If the profits from your “little” real estate investing are more than what you’re bringing home in your paycheck, it might be time to put in your notice at your job and start focusing on developing your new business.
- You’re Investing a Significant Amount on Your Real Estate Investing
If you’re spending a lot on materials and supplies for your real estate investing, those are expenses you could write off if you were set up as a business. Keep track of your expenses now, because you may still be able to write them off once you launch your business.
- You’ve Got the Right Mindset
You think like an entrepreneur. You’re constantly coming up with new product ideas. You’re ready to own your own business! There’s nothing stopping you but yourself.
Now That You’re Geared Up, How to Prep Your New Business
Making the mental shift to turn your real estate investing into a business is the first step. Now you’ve got more work to do!
- First, search to see if anyone’s using the name you want. If it’s available, file a DBA under that name.
- Next, choose your business structure. The S Corp is popular for small business owners.
- Then, register for a Federal Tax ID number. It’s free!
- After that, open a business checking account. This will keep your finances separate.
- Next, apply for any business licenses you’ll need. Check with your city and state to find out what’s required.
- Then, create your business plan. Include how you’ll market your business and what you’ll spend to launch it.
Now you’re ready! You’ll find that running a business based on a real estate investing you love is satisfying!