Tag Archive for: starting a business

5 Simple Steps to Starting a Successful Business

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5 Simple Steps to Starting a Successful Business

Many real estate investors and contractors wonder how they can get everything done that they need to. From setting up the EIN to naming the business, it can all be daunting. Today we are going to discuss the 5 steps to starting a successful business in order to get you on the right path quickly and easily. 

What are the 5 simple steps to starting a successful business?

#1: Make sure that your personal credit is set up for success. This will look differently for each person, so be sure to focus on the areas that need improvement.

#2: Define your business by deciding what the business is and how many businesses you want.

#3:  Decide the name for your business. It does help to have a parent company with no specified direction. Not only will it simplify things for you, but more importantly it will smooth things out for the banks for future financing needs. 

#4: Create an EIN by registering the company with the secretary of state.Setting this up correctly will ensure that you are seen as a business not only to lenders, but to clients as well. 

#5: Define your goals. Be very clear with your goals! Where do you want to go with your business, how many properties do you need, do you need to buy machinery? All of these goals need to be established first and foremost when starting your business. 

You are not alone!

There are a lot of companies out there who can help you through the process of setting things up correctly. They can help you find the right bank for your needs, register for an EIN, and even complete a DBA to change the name that you are working under. Contact us today to find out what you need to do to get started and ways you can set yourself up for success.

Establishing your goals are the key to success! 

Even though we have goals as #5 on our list, it really should be first and foremost in all of your business decisions. Those who don’t have their goals established will only focus on completing a checklist, which will result in more work. Maybe your goal is to buy five more properties this year. Another person’s goal might be to scale their business so that they can bring on two more employees. No matter what the goal is, make sure that you achieve it using your company name. In doing so, you will be able to work backwards and determine the steps you need to take in order to complete your goal.

Fitting into the lending box.

Those who establish their goals in the beginning are able to create a roadmap to success. As a result they can then begin looking for banks, as well as vendors, who have the products they need to succeed. Just to clarify, vendors can include home depot, lowes, and the gas company. These are just a few of the companies that can help you build business credit if you do it correctly. It is important that you get into the charge accounts as well. This will help you to not only grow your business, but build  your business credit score as well.

Build the migration from personal credit to business credit.

Finding the right vendors can help you begin the transition from personal credit to business credit. By having business credit you will be able to open more doors that will allow you to reach your business goals. Do you need a business credit card? Contact us today to find out more! 

Play the game to win it.

Real estate investing is all about leverage. In order to be successful in this community, you need other people’s money, loans, and debt. This will allow you to buy properties, as well as fix up properties. Investors and contractors who take the time to work on their credit will be able to open more doors than they would have otherwise. It is important to remember that times have changed and will continue to do so. Those who can set things up correctly, take the steps to get there, and focus on the quickest steps will have a greater chance of winning the real estate game!

Watch our most recent video to find out more about the 5 Simple Steps to Starting a Successful Business.

Are you starting a business and not sure where to begin? Contact us today to get on the right path! 

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How to Overcome Your Fear of Real Estate Investing

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How to Overcome Your Fear of Real Estate Investing

Real estate investing can be daunting for many people. They often wonder what they have to do in order to apply and be approved for multiple loans. So how do you get started and overcome your fear of real estate investing? Let’s take a closer look.

Good properties make the difference.

When you are selecting properties for your real estate investments it is imperative that you have good properties. What is a good property? A good property is one that meets all of your numbers, and will help you move forward. If the property doesn’t pay for its own mortgage and fix up, then don’t do it. By taking a property that does not cash flow, it will become a burden as opposed to an asset. 

What do we mean by “covers everything”?

When you get into an investment and take out a loan, you have to make sure that the business covers everything on that loan, so that it doesn’t become a worry. Just to clarify, the business is the property. For example, if you have a rental property, then the rents have to not only pay the mortgage payment, but they also have to cover additional expenses as well. If you have a mortgage payment of $2,000, then you need to charge $2,500. This amount will not only cover the mortgage, but provides extra money for fix up costs or other expenses. 

Keep personal and business separate.

The key to being successful in real estate investing is to separate your business expenses from personal expenses. At no time should the property cost you money out of your personal funds. It is important to be safe and secure in order to protect your personal credit score, and ensure your financial stability. Here at The Cash Flow Company we strive to help you succeed. Contact us today to find out more about setting up your business correctly in order to prevent credit score stress and financial strain. 

In conclusion.

Overcome your fear of real estate investing by doing the research and setting yourself up for success. Real estate investors need to set the business up correctly, know the numbers, and be prepared. 

Here at The Cash Flow Company we can get you started on the path of success. Contact us today to find out more about getting started in real estate investing. Also discover what you need to do to overcome your fear.

Watch our most recent video about Overcoming your fear of real estate investing to find out more! 

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There is Hope in a Tough Housing Market

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There is Hope in a Tough Housing Market

Things have changed, bankers have changed, and lenders have changed. You should always have control over your lending options. There is a glimmer of hope in this tough housing market. Investors can empower themselves by setting things up right, cultivating relationships, and knowing their numbers. You can still make a lot of money in this market as long as you understand the rules in the game and have the flexibility to change with the times. How do you get started? Let’s take a closer look at what you need to do to succeed.

What do investors need to do?

This is the time when the select few will make a lot in the near future. If you want to take advantage of this, then you have to do certain things. Let’s take a closer look at real estate investment essentials for today’s market. Also known as the pillars of success.

1. Find a lot of properties/find good properties

It is important to buy when everyone else is running away. A successful investor needs to determine where they will find properties, connect with others to start buying better properties, and understand the value of the property. The better the property you find, the better chance you have to get the financing you need. Especially from private lenders or hard money lenders. 

2. Set up your business correctly  

It is imperative that you set up your business to look like you are serious about investing. This includes setting up your business name, establishing business accounts, and applying for business credit cards. In setting these things up correctly, banks and lenders will know that you will do what it takes to succeed.

3. Make sure you have a diverse source of funding 

Start by looking for lenders who are actually lending, and build a relationship with them. In taking the time to build that foundation, you will be the person who goes to the top of the pile. Lenders will not be willing to help investors who don’t return calls, or those who are unprofessional. Finally, broaden your horizons by looking at other options to see who can help create the wealth you want. 

4. Find contractors and resources that will help you complete repairs.

We still see properties that are selling like crazy. These are in good locations and have quality work done. It is important to find contractors and resources that will help create a product that people will want to buy. Don’t skip on the flips! Take the time to find a team who can make your property shine. This will result in a shorter sell at a better return for you.

Creating the leverage you need to succeed.

Make sure that your business is set up correctly from the very beginning in order to create wealth. In doing so, you will be able to open up business credit cards, business lines of credit, and seek out OPM or other people’s money. An underused source of funding is OPM. Nowadays more people are searching for better returns, you can be their solution. Investors who create these buckets of money will set themselves up to win. It is also imperative that you have a good credit score and a good business history so you will be more attractive to the lending community. Do you need help with raising your credit score or locating OPM. Contact us to find out more! 

In Conclusion

There is a glimmer of hope in this more restrictive economic environment. Those who set things up correctly in the beginning will have an advantage over those who do not. It is important to always remain in control amongst all of this change. By setting your business up correctly, increasing leverage, doing research, and creating relationships, the sky’s the limit for your success. This is one of the most valuable times to get into real estate investing! Contact us to find out more.

At The Cash Flow Company we can help you find the funding you need and guide you through this market. 

Watch our most recent video to find out more about Real Estate Investment Essentials for Today’s Market.

 

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Key to Succeeding in Today’s Real Estate Market

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Key to Succeeding in Today’s Real Estate Market

The key to succeeding in today’s real estate market is consistency. If you are consistently looking at properties, finding lenders, and doing things correctly, then you will set yourself up for success. Things have changed dramatically compared to 10 to 12 years ago. Back then, there was a whole generation of investors who had an easier time navigating the market. They had lower rates, property values increasing, and lenders were throwing money at everyone. Nowadays, everything is tightening up. Lenders are disappearing, and those who are still lending are becoming more selective. It is imperative that investors stand out in this market and set themselves up correctly. In doing so, investors will get the best deals and set themselves up to win. 

How the market works

When interest rates go up, people can no longer afford to buy properties. The decrease in home sales results in a plateau or even a decrease in property values. Predictions are saying that rates will go back down to 5.5% in 18 months time. When they do, people will once again be able to afford to buy properties. As things loosen things up, there will be a wave of people coming into the market and buying properties. Investors who set themselves up in this market will win in the future.

Let’s look at an example

A property that you purchased a few years ago for $400K would now sell for $350K in this current market. When the wave comes back in 18 months to two years, that same property will be selling for $450 to $500K! That’s a great return. During these cycles, many people start running away and stop buying properties. These are the times when smart investors come in and buy. If they are able to hold onto it until rates improve, then they will in turn reap the benefits of the better rates and generate greater cash flow.

Customer success story

In 2010 I helped someone buy 10 homes in a year, without him putting any money in. Back then, the properties were cash flowing $500 per month because he had bought them at such good numbers. Fast forward to 2022. He only owes on 3 of the properties and has paid off the other 7. They have all increased in both the property value and rent by 3x and even 4x on a few of the homes. In only one year he set himself up for the rest of his life. This is all because he bought when everyone else was running away. 

In conclusion

Remember that consistency is the key to succeeding in this market. From finding properties, to locating lenders, and setting things up correctly, consistency will create success. This is the best market to get deals in. When rates go back down, which they will, it will create a wave of people coming into the market and buying properties. Now is the time to get ahead of the wave of success. In doing so, you will be able to take advantage of lower rates, increase your property value, and most importantly create cash flow.

Contact us today to find out more about the changing times and what you need to do to get ahead of the wave.

Watch our most recent video to find out more about the Key to Succeeding in Today’s Real Estate Market

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5 valuable lessons learned in real estate investing

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5 Valuable Lessons Learned in Real Estate Investing 

In the past 23 years, I’ve helped thousands of people become successful in real estate investing. Looking back over those years, there are several things that I would do differently to not only make me successful but also, ways to do it quicker. There are 5 valuable lessons that I’ve learned and want to share with you about real estate investing.

1. Take the fast track

Don’t try to reinvent the wheel! Find systems and people who have worked hard and copy them. Look at what they are doing, what their systems are, and what they are looking for, as well as what they are avoiding. Discover exactly how to win by exploring what makes sense for your investments and what doesn’t. There is so much noise out there! You want to make sure that you are watching the people who are doing great and ignore those who are just talking about doing good. Here are the top three things that you need to get on the fast track!

Properties:

A valuable lesson that every fast-track investor needs to learn is how to find good properties. Find and look at as many good properties as you can.

Funding:

The most important thing as a real estate investor is leverage and using other people’s money. Funding is available through banks, lenders, or individuals.

Put together a good team:

It is vital that you partner with good contractors, knowledgeable realtors, stagers, and property managers. By putting the whole team together, they can support you by knowing what you are looking for as well as what they can or can’t do.

2. Times VS Time

The question that all investors ask is, how long does it take to be successful? Success is heavily reliant on the number of times you practice evaluating properties, as well as exploring your lending options. The more you practice and look at properties, practice and comp out a property, and reach out to lenders, the more knowledgeable and confident you will become. It takes 100 times to walk through these steps before an investor becomes confident in the process. Some investors can achieve this in a week, while others may take 6 months to 6 years. Again, it’s not the amount of time it takes to be successful, it’s the number of times you practice.

3. Set your business up to win 

You must set up your business correctly from the beginning. To do this, make sure that your business is properly set up with the state, has a bank account, and has an office location. Every correct step will ensure that the business is set up to win the leverage game. One of the most important steps in this process is selecting your business name. Avoid putting “real estate” directly in your name because it will impact your funding moving forward. Instead, you can use “management”, a name, or a group in order to make your business name unique.  Once everything is established, find local banks that love to work with real estate investors. While national banks are great for unsecured lines of credit and credit cards, it is the local banks who will partner with you long term.

4. Create simple processes

Investors can easily become overwhelmed by all of the components that need to be considered before purchasing a property. By walking through the steps over and over again, it makes it easier to not only set up a simple process for yourself but then allows you to hand things over to others. Begin to find people who can support you and follow your established processes. You must ask yourself:

  • How do I comp out a property?
  • How do I walk through a property to see what needs to be fixed or repaired?
  • How do I pick a contractor?

5. Scale with flexibility

To add volume to your investments, you must bring in more people. However, these individuals are not on the payroll. More importantly, their partnership and expertise can guide you on the fast track to success. From having real estate agents help comp out properties, to bringing in more wholesalers, this can help you win with flexibility with your scalability. As long as you have your systems established, there is no ceiling to your success.

Bonus

6. Do whatever it takes

You must do whatever it takes to get you to where you want to be. Only you can determine what that means to you. Identify what you need to do upfront, and just do it! If you get into that mentality, you will be able to navigate the road to success within your market. The people who have the “do whatever it takes” attitude will not only win in this market but in every market thereafter!

Our goal is to make you successful! By following these 5 valuable lessons in real estate investing, you will be on the fast track to success! Watch our most recent video to find out more about these 5 valuable lessons. 

Have more questions on how to get started with your business and how you can win in real estate investing? Call us today! 

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