It's a very exciting time to start a real estate investing business. There a several steps to take before starting your business and we advise you to perform your due diligence before making your first investment.
1) Research locally the requirements to start a business. The SBA is a great place to start gathering information regarding creating a business entity, licensing, insurance, tax requirements, and much more. Each State requirements vary; therefore, we encourage you to do your homework.
2) Find a Mentor and/or Investor Partner. You do not have to start on your own. Network, ask and be committed to the process.
3) Attend educational courses, webinars, books, CD's, workshops, conferences, meet-ups, sessions, events, etc. There are many ways to learn this business and many ways to make mistakes. Don't skip education. Visit our Workshop Page and attend free workshops.
4) Select an area of real estate interest and master it. There are so many areas to start a business in real estate, you can become overwhelmed quickly. Review potential real estate investing avenues to get an idea of what you want and why you want it. Examine the pros and cons before making your decisions. Understand your risks. Download the "Introduction to Real Estate Investing" document to learn more about different types of real estate investing and "25 Real Estate Terms You Should Know".
Congratulations! You are making big moves. A sophisticated investor is a term used to refer to an individual or a class of individuals with vast knowledge and experience in investment and business matters, alongside high net worth that allows them to go for high-risk investment opportunities. We call it "Skin in the Game".
3-20 properties could mean a lot. What property type(s), programming, locations, etc. are a part of your portfolio and how are you managing your cash flow, taxes and equity. At this stage, sophisticated investors are usually above the wealth ratio break even point and well on their way to exceeding a wealth ratio of 6.0 or more.
There could also be growing pains at this stage, therefore, we highly suggest joining co-horts, groups, coaching, financial planning and learn capacity building techniques. Network with members and share resources, experience and provide support. Don't be shy, let us know when you close a deal. We'll celebrate with you and share your success with members.
The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
Accredited investors are often invited to invest in opportunities unknown to beginners or sophisticated investors. This advantage allows investors to advance their portfolio, cash flow and equity rapidly, creating legacy wealth. Accredited investors may also benefit from tax advantages unlike beginners or sophisticated investors.
At this stage, accredited investors are usually savvy seasoned investors who typically make straight-line investment choices according to their preferred portfolio styles. It is common for accredited investors to carry a diverse portfolio with a mix of investment styles. Accredited investors wealth ratios typically exceed 16.0.
We encourage accredited investors to mentor beginner members. If you are interested in mentoring a beginner investor, please send an email request to firstname.lastname@example.org. Subject Line: Available Mentor. We will partner you with a beginner investor interested in mentoring.