Developing your Real Estate Website

Well, your home is all fixed up, rehabbed, looking pretty, and up for sale. Now you are asking, “How can I get rid of this thing?” First start with the price, you want to make sure you are asking an amount that will be good for you and good for the buyer. If the buyer feels like they’re getting a good deal, that will help you move the property faster. A lot of investors over price their house and end up sitting on it for a long time and they get eaten up on holding costs. So price your fixed up house right and it will move.

Well, it’s time to jump in the water and get your feet wet. The first thing you want to do is get out there and start looking. Talk to real estate agents, look in the classifieds, and keep your ears open for a good deal. You want to find the worst house on a decent street; you don’t want to end up with the nicest, most expensive house on a not so good street. If the house is in a bad area, it will be harder to sell because the location is not that desirable and your prospective buyers will be harder to get pre qualified for financing. Find a house that is structurally solid but needs some major or minor cosmetic attention.

Tighten the boot straps, let’s go on a ride. You are asking yourself is this possible? I already have a nine to five job? My answer is absolutely. I know, because I did it myself, and I’m telling you it is possible. It just takes a solid game plan and focus. I recommend buying a couple rentals and getting your feet wet before you take on this task.

A business entity is a legal relationship which allows for certain privileges. When teaching people about entities, I like refer to an often forgotten fact: In England during the colonial period the ability to create a corporation required an exclusive grant (i.e., permission) from the Crown (that’s right the King or the Queen!). Remember a business entity is a privilege!

A business entity can provide personal liability protection for its owners. The problem is that many people start business without proper instruction on how to run and manage agreements between parties, agreements with customers, internal paperwork, cash controls, voting rules, state and Federal reporting requirements and a host of other issues.

"FREE" Internet Estimated Values: Do they help you set a sales price?

I always say that when choosing a business entity, you must evaluate the tax advantages and disadvantages BUT ALSO the level of liability protection. LET’S LOOK AT A COMMON TRUTH: Many attorneys recommend the corporation to their clients. For the most part, corporations will provide good protection from ‘traditional liabilities’. In other words, if the business is sued for its business activities, then I consider this a ‘traditional liability’ situation. In most instances (a properly set up and maintained corporation) will protect the owners from personal liability.

POINT # 1: Many investors believe that they can create a limited liability company (LLC) or file a corporate charter with the state and always have liability protection. This is SIMPLY NOT TRUE. The truth is that each of these business entities (the LLC, the corporation and even the limited partnership) require certain key steps after the structure is created. I always like to compare business entities to a fancy Italian sports car or a new baby…they WILL DEMAND PROPER CARE AND FEEDING! They are fun on the first day, but you had better know how to maintain them. You can’t neglect the baby or take the fancy Italian sports car for a spin without any oil in the engine. If you do then a disaster is coming! Many new business owners believe that because they hired an attorney or service to create their new business entity, the work is done. The truth is that what you do after the entity is created is most important. There are countless nuisances, details, traps which must be understood in order to MAINTAIN LIABILITY PROTECTION.

I see it several times per day, everyday: An LLC disaster waiting to happen! No matter where I travel or with whom I speak, it’s clear that small to mid-sized business owners are not getting proper instruction on how to create, run, and maintain a ‘rock solid’ LLC. Did you or your attorney form your LLC? Are you now left with a stack of papers and confusion?