Starting in the real estate industry requires knowing what type of business you want to have. Be sure to choose whether you want a full-time or part-time career in real estate before you start placing offers because some business types require more attention than others. Some of these types involve daily interaction with renters and being on call, while others require negotiating deals.
Landlord
Prosperous landowners like Stefan Soloviev can tell you that all landlords are property investors, but not all property investors are landlords. You are a landlord when you own a property and receive income from renting it. This type of business also earns equity while you own the property. You can use the equity to improve your rental or cash in on it when you sell. Your purchase and renovations may be partially funded by investors looking for a return, but those investors are not responsible for the same things you are.
Property Manager
Property managers are often confused with landlords because they are the point of contact for those renting the real estate. While you can be both landlord and property manager, most more prominent landowners will contract a property management company to handle rental applications, repairs and dealing with tenants. Starting a property management company is a full-time job and may result in emergency repair calls at any time of the day.
Real Estate Flipper
Flipping real estate means buying a fixer-upper and renovating it for a quick sale. Contractors will sometimes flip properties to keep crews busy between other projects. To flip real estate, you will need the ability to purchase property, pay for renovations and pay the mortgage until you can sell it. You can do this as a part-time or full-time job, but making accurate estimates in terms of time and costs for property repairs is a crucial skill.
Agent
A real estate agent is a licensed profession, but it can be easy to find online and in-person courses for certification. Real estate agents will need to hunt down leads, but many will work with an extended network of associates to gather clients and make sales. You can start with an established company or go it alone, but most new agents find it easier to make industry-related contacts by working with an agency.
Starting a business in real estate means knowing which type of related career is the best fit. You can become an agent, landlord or flipper, and you can even be all three at once. Remember that a landlord does not necessarily manage the property and that having a good eye for real estate is crucial for investing, flipping and selling.
