When does your Portfolio turn into a “Business”

[Michael Ellis]

This may be a loaded question but how or when does your real estate portfolio turn into a “Business”? Meaning at what point do you hire employees, quit other income streams etc… Is the money coming through cash flow from rental properties or buying and selling…

I am 21 and just starting out and this of course is the plan for the next 5-10 years but I want to plan ahead.

Thanks

[Jon K.]

Your real estate portfolio doesn't turn into a business. It IS a business from the very start, with the purchase of your first property.

It makes sense to hire employees or outsource activities when the value of your time exceeds their cost or when they have expertise that you do not.

Where does the money come from? Depends on what you're doing with REI.