What is the correct way to start?

Question

So I was a landlord in the past, I had some good experiences, some bad experiences, some great experiences, and some terrible experiences. All in all I enjoyed it, and I'm looking to start doing it again, but unfortunately the last time I didn't necessarily go through the proper channels which left me exposed to potential downfalls. I guess right now my biggest question what is the correct way to start a real estate company for reantals, holds, and flips? Any and all advice would be greatly appreciated. Thank you very much.

Tim Delaney · Answer

I didn't recommend starting out of state. I just said that forming an LLC is not worth your effort as a first step. Just work on finding a deal. Use @Jerryll Noorden's method, a traditional real estate agent, or a wholesaler - just focus on networking and finding a deal. Attend or start a BP meetup in your area to meet some local people.

Jerryll Noorden · Answer

If you are new try not to get overwhelmed by all the unknown tasks ahead of you. know this, you may not see clearly what lies ahead but I (and a ton of other more experienced ) members do.

Take one step at a time. Yes get a website. Get investor carrot. Then focus on credibility. This is an art and science and most do it wrong.

No I do not pay for marketing. But if you want ta deal right NOW.. as in, in the next 2 months, you do need to pay for marketing.

What I did and don't recommend this, is I worked day and night ranking my website, none stop. I got my website to rank #1 in about 3 months. This does not mean you will do it too in 3 months.

The secret to success is you need to fuel your company with money. Always. Only then will you constantly grow and scale. So your mission is to make money ASAP and keep it flowing. This fuels the deal machine. Without money everything stops.

Kristen Reyes · Answer

@Jerryll Noorden

And then with your website are you paying for marketing?

I am brand new so any information would be helpful.

William Starkey · Answer

@Tim Delaney I plan on staying in state idk if im ready to venture out of state yet. Mainly becuase I don't have enough information about it.

What are some pro's and con's to venturing out of state?

What state would you recommend starting in?

Jerryll Noorden · Answer

You start with a website. I do not CARE what you end up doing. You START with a website.

Stop thinking, stop trying to find logic in this. You start with a website.

You work on SEO and you work on your credibility.

WHY?

Because ranking #1 = making it BIG!

Because Ranking #1 = you will be a millionaire in no time

Because Ranking #1 takes time!!

Do you know what it meas to rank 1?

Get a website NOW! It will be the source of super highly motivated leads easy to convert at crazy high profit margins.

Tim Delaney · Answer

An LLC to start probably isn't going to help anyway if you are using a traditional lender since they will often make you sign personally anyway for any loan. @Aaron K.'s advice about not over-leveraging is the best way to keep yourself out of trouble to get started.

Aaron K. · Answer

@William Starkey you don't even have to do that when just starting some states have much cheaper LLCs than others

William Starkey · Answer

@Aaron K.

So in short your suggesting to form an LLC first?

Aaron K. · Answer

You can start without an entity as long as you aren't putting yourself in a risky position by over-leveraging or conducting business in an unethical way, once you grow a bit then you can think a bit more about asset protection.