04 Nov How Long Does it Take to Build a Real Estate Business
If you’re new to real estate investing, it’s easy to look at people who have been investing for years and think, “Will this ever happen for me?” So how long does it take to build a real estate business? Every situation is different, but we’re going to tell you what we know from experience.
Seeing what others are doing can be a great motivator. When you see peers achieving great success, it can serve as a reminder that you can do it too. But, at the same time, seeing others have real estate deals where they make upwards of six figures or more on one deal can make you feel like you’re never going to make it.
Building Your Business
The first thing to understand is that our company has been in the real estate business for a long time, and our success is not necessarily typical in the industry. We have worked hard over several years to create what we have and discover the strategies that work best for us. Results vary, but the important thing is you see the potential.
So let’s get down to it.
How long does it take to build a real estate business?
Understanding how cool it is to build a portfolio up is the first step. Then, once that portfolio is built up, you know when, how, and which deals to make longer-term. For example, you will know which sandwiches you can convert to subject-to deals, which owner financing deals you can make; and the list of options to keep your portfolio growing goes on and on.
Once you get into the niche, it can be about spinning out of your properties in two, three, five, or seven years, and for some properties, it's not.
If you knew beyond a shadow of a doubt that you could make predictable profits while having fun and designing a lifestyle for your family, what on earth would stop you? Let’s take a peek at how it looked at the end of 2017 for our company and our family, so you understand the potential real estate investing has because I want you to blast forward with this thing.
In maybe 18 to 36 months, your life could change with real estate investing – and I’m going to show you why I say that. I don't know how long it will take you to accumulate a lot of property–everyone goes at their own pace, but I am going to give you a snapshot of our exact property list at this moment in time. However, if something's been cashed out, it's not on here. If something's still pending on a sandwich lease. The properties I’m talking about right now are all properties we own and have a tenant-buyer in. I want to show you this because I want you to understand you can absolutely do this.
I just want you to see reality. We are in the trenches of this business every single day, and once you get your arms wrapped around the power of what we're doing here, it's very lucrative, or it can be. Our students come from all walks of life–we've got single parents and stay-at-home parents. We've got people that failed in other industries and businesses. We have people who failed financially and are using real estate investing to get back up.
How We Make it Happen
So on to our portfolio. We chart the end mortgage balance, the sale price, the full term profit, and then the money paid by our buyer to date. We also track our monthly spread. Now, what I want you to know is these are all the properties we're currently holding. So this is important.
At the end of 2017, we had a total controlled inventory right now of about $15 million. I can tell you that our Associates around the country controlled around $7.5 million at that time–about half of what we do. Now, nearing the end of 2021, that number is significantly higher.
These property deals were all done without any money or much money down. We put ten dollars down on some properties–others, we put up to $500 down. Let's just be safe and say we may have a full-term profit of over three million dollars. $3 million.
Once you understand the market and how to invest like this–once you know the power of getting these properties set up–this is not about doing a deal or a wholesale flip or a rehab and then doing another one. That's a job. This is about putting together a business that doesn't require you at some point. Right now, could my family and I stop accumulating properties if we wanted to? Sure. We have much more profit now than we did just a few years ago.
Plus, in potential cash outs, we have about tens of thousands coming in each month in the monthly spread. If you’re unfamiliar, the spread is the difference between what we're taking in for income from our tenant-buyers and what we're paying out to mortgage companies or sellers.
What if a monthly profit of $20,000 took you 24 months to build? What if it took you 36? What if it took you four years? Would you be okay with that while you go about your life plan or continue working your job or doing whatever you do, all while accumulating $20,000 in spreads that don’t count your cashouts (when your lease purchasers buy the home)?
Want to know more about how long it took us to build our business? Watch this video to help answer ‘how long does it take to build a real estate business?'
Set Your Real Estate Business Up for Success
Investing in real estate doesn’t need to be scary or expensive. You can set yourself up for a fun business opportunity that has the potential to grow with no money down.
However, because life happens and people mess up, there’s a 2-5% chance that your investment could go into default. If this happens, you have to be ready. That means having lines of credit and other things set up to protect yourself, just in case.
You also don’t have to do high-ticket deals at first. Several investors just want to make a little extra cash, especially at the beginning. You could have an agreement where you make an additional three, four, five, or seven thousand dollars. Sometimes it’s about making just a little extra cash to help with your move or for a family member or a vacation or whatever else.
Make it Work for You
When it comes to real estate investing, there are all kinds of nuances. There are a million ways to make a deal work for you. It just depends on what your needs and goals are.
Don’t forget! Get your free copy of our Real Estate Investor’s Blueprint. Just fill out the form to the right and we’ll email you our step-by-step guide to getting into investing and owning more homes without using your cash or credit.