Welcome to the Real Estate Investor Shop!
Resources + Education = Success!
Welcome to the Real Estate Investor Shop! You've found the right site for information and resources that will help make you a more successful and knowledgeable real estate investor. The first step to success is always education! The more you know, the more confident you'll feel about making decisions. Take advantage of all the free information throughout this site. The Real Estate Investor Shop contains loads of tips, tricks, techniques, strategies, articles, and property investment courses and products developed by well-known, highly successful real estate experts. This industry is fast-paced and ever-changing, so whether you're brand new to real estate investing, a seasoned pro, or somewhere in between, check back often to get information that's relevant to your level of property investing. Get educated, make money, reach your goals, and grow your real estate business. You CAN do it! Resources + Education = Success!
Get Your Real Estate Investor Career Started!
Real Estate Investor
On the fence about getting started as a real estate investor? Feeling intimidated and a little overwhelmed-- kinda like being a freshman on the first day of high school? That's natural. But as with any new venture or career, the best advice is to get educated, surround yourself with trusted advisors and mentors (your local Real Estate Investing club or National Real Estate Investors Association is the best source for experienced individuals who want to share their knowledge), and then take action. The following can make your transition into property investing easier:
- Figure out what type of investor you want to be. Do you want to buy a house to rehab and flip? Maybe you want to rehab and become a landlord (or hire a property manager)? Or maybe you want to buy a turnkey investment that is already rehabbed and fully rented? Focus on one goal at first. You can always branch out later, but property investors who get good experience with one aspect of real estate investing beforethey add something new, generally do better.
- Read everything you can about real estate investing. Read and participate in on-line investor forums so you can ask questions and learn. Join a local Real Estate Investing (REI) club and attend meetings regularly. Immerse yourself in real estate and really make it your business. Ask questions and learn from property investors willing to give you advice, and from contractors, tenants, and inspectors.
- Find both a real estate agent and mortgage broker that specializes in investment properties. It's important that s/he be a real estate investor, too, so you know that they "get it." If s/he does the same type of investing that you are interested in, they will already understand your objectives, be able to answer your questions, and teach you about the market and how to evaluate potential deals.
- When you find the deal, analyze it thoroughly, but quickly. Don't lose a property investing deal because of analysis-paralysis. Lean on your trusted advisors to help you know what is or is not a good deal. Then make the offer!
- Learn all you can about how the closing process works. Understand all the documentation involved.
What Business Entity is Best?
Real Estate Investor
If you're just setting up your first real estate investor business, it's important to know the pros and cons of each type of business entity so you know which one will benefit you the most. Here are a few of the most common types of businesses:
Sole Proprietor: A sole proprietor is someone who owns an unincorporated business by himself or herself. This is the least "protected" business structure in that sole proprietors have unlimited liability for business debts, lawsuits, and judgements.
Partnership: A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Sole Proprietor: A sole proprietor is someone who owns an unincorporated business by himself or herself. This is the least "protected" business structure in that sole proprietors have unlimited liability for business debts, lawsuits, and judgements.
Partnership: A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Property Investor Business
BizFilings Incorporation Services makes business incorporation easy for real estate entrepreneurs. BizFilings professionally forms corporations, limited liability companies (LLCs), and nonprofits faster than anyone else. The company has grown rapidly in the past decade, helping over 150,000 domestic and international business owners with incorporation services. BizFilings is committed to helping and educating property investors and small business owners to easily and affordably undertake this important business step without sacrificing quality.
A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
Corporations: In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity.
Corporations: In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity.
A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This creates a double tax. The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.
S Corporations: An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.
Limited Liability Company (LLC): LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner. A few types of businesses generally cannot be LLCs, such as banks and insurance companies.
With all businesses, regardless of the type, it is important to know how to create the required records, conduct proper meetings, maintain bank accounts and so much more. Just filing your paper work is not nearly enough. Luckily, lots of licensed professionals as well as free resources from the IRS are available to educate property investors. Take advantage of them!
S Corporations: An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.
Limited Liability Company (LLC): LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation. Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner. A few types of businesses generally cannot be LLCs, such as banks and insurance companies.
With all businesses, regardless of the type, it is important to know how to create the required records, conduct proper meetings, maintain bank accounts and so much more. Just filing your paper work is not nearly enough. Luckily, lots of licensed professionals as well as free resources from the IRS are available to educate property investors. Take advantage of them!
Legal Forms You Need for Property Investing
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Get started with property investing!
"Back to the Basics" Real Estate Training Program
Discover the Secret to Making Money in the Current Real Estate Market...
Hint: It's All About Getting Back to the Basics!
Learn the exact strategies and techniques which Heather Seitz has used to help hundreds of people create a Systematic - Profitable - Real Estate Investor Business. Click now to learn more about Back to the Basics Virtual Mentorship Program!
Hint: It's All About Getting Back to the Basics!
Learn the exact strategies and techniques which Heather Seitz has used to help hundreds of people create a Systematic - Profitable - Real Estate Investor Business. Click now to learn more about Back to the Basics Virtual Mentorship Program!