There are countless information courses floating around the internet. Why? Because for every problem that exists, someone claims to have the solution.
And that solution is usually some oddball money-making system that tells you how to turn a casual interest – or maybe something you’re super passionate about – into sustainable, reliable income.
Just like Starting A Rental Business. Here’s the hard truth, though…
Most of these programs:
- Take way more time than you’re led to believe
- May have hidden fees
- Require you to buy multiple upsells in order to get the “real” information
But most importantly, a lot of these programs just don’t scale.
“Scale” means once you do the work to make a little money, it should get easier to make more money, not harder.
The problem is, most programs out there make it hard to make money at first, and even harder to keep making money.
In other words, you might be able to make some money in the beginning, but it won’t be sustainable and you’ll end up getting discouraged.
This is the exact opposite of passive income.
When income is truly passive, you do the work upfront, but then you set it and forget it. The money gets made whether you’re working or not. It’s not directly tied to the hours you put in.
So, what if there was a way you could build a passive income stream that’s actually passive?
An income stream that doesn’t require:
- Selling to friends and family
- Selling to strangers
- Recruiting people
- Dealing with questionable products that weigh on your conscience
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is nothing like A Rental Business, and that’s probably a good thing.
However, if you’d still like to know more about Starting A Rental Business, keep reading.
What Is A Rental Property Business?
A rental property business is an enterprise through which an investor will purchase and manage one or more income-producing properties. These rental properties can have one or more units leased out to tenants in exchange for monthly rental fees.
Every investor can have an effective rental plan without physically managing these properties; property management companies can be contracted to carry out the chores usually associated with landlords, such as rent collecting and maintenance.
Is My Rental Property A Business?
Some consider renting a house a business. This is a problematic question with two answers. Residential rental can generate passive income. When reporting rental properties, investors don’t pay self-employment taxes.
Many argue that renting a home is not a “business” for tax purposes. Many people live off passive revenue from a rental property business, so renting a house can be considered a business. You can run a rental property business.
Still, folks with a single rental property may not need to create a corporation. Renting becomes a business once the portfolio grows.
How To Start A Rental Property Business
Starting a rental property business is like starting any other business. Before starting a business, investors must identify several crucial elements. Here are some measures to take while writing a rental property business plan and becoming a real estate entrepreneur:
- Join a local REI club & start networking
- Pick a niche & choose your rental property market
- Figure out the right proper financing and secure it
- Conduct the most appropriate research and hire a manager
- Implement systems to improve efficiency in
- Manage the rental properties business and scale your business at a sustainable pace
1. Join A Real Estate Investor Club & Network
Joining a real estate investing club or association gives networking opportunities, which may assist a rental property business owner in finding a partner. Nathan Hughes from DiggityMarketing urges investors consider many considerations before buying rental property. Beginner investors should join real estate clubs. A real estate investment club can aid new investors, especially prospective rental property owners. There’s always someone willing to help at these meet-ups. Investors will at least learn about local professionals doing what they want to do.
2. Pick A Niche & Choose A Market
Choosing where to invest can be more important than capital or experience. Location, location, location is the real estate mantra. Location is the most critical component in a rental investor’s success. Location affects demand, price, and long-term potential. A solid rental property business plan will answer these questions and more.
- How far out do I want to go for a market?
- Would I be able to delegate day-to-day operations to a team, or will I need to make frequent trips back and forth?
- How much will you have to spend on gas and studying the market?
- How diverse and stable is the market’s economy? Is it the case that various industries can aid in the preservation of jobs and establishments? Does the area have a single major employer?
- What would be a fair price to pay to buy a house in today’s market?
- How much do a typical monthly lease cost and rental income?
No rule says investors must live in the markets they invest in, but there’s no excuse for not researching the local housing market. To invest successfully, investors must know a specific field and their niche.
Jordon Scrinko, founder and marketing director of Precondo, says, “Investors’ investment decisions are often more important than their capital or experience.” Location is everything in real estate. Where a rental property owner chooses to invest is arguably the most crucial factor in determining their success.
Investors should know their renters as well as their neighborhood. Niche marketing is the easiest approach to target a particular population, like college housing or single-family houses. Then, rental property investors can adjust their company plan to their audience’s needs.
3. Figure Out Financing
Investment Property Financing is the main challenge for rental property investors. Real estate financing isn’t as tricky as many novice investors think. Numerous lenders are eager to give intelligent investors money to invest in real estate. Today’s real estate investors have more non-traditional finance sources, like institutional banks. Private money lenders and hard money lenders are the greatest options to acquire cash and are eager to deal with investors.
These “alternative” sources have higher interest rates (typically three to four times higher than banks), but the cost is worth it. Investors get the money they need sooner than through a bank in exchange for higher rates. Alternative lenders can get money to investors in days or hours, whereas banks can take months.
It is also vital to note that getting finance should be done before even looking for a home. Investors will know how many houses to buy and which investments to pursue.
4. Conduct Research & Hire A Property Manager
As a landlord, investors must maintain the property’s appearance and function. Hiring a property manager is strongly suggested, regardless of whether the investor is handy. Enlisting a third-party property manager is vital to a rental property business plan. With their support, investors can grow their portfolios without working more. Property managers handle everything. Property managers will find tenants and collect rent. Meanwhile, the investor is free to add new assets to their portfolio and enhance their passive income cash flow. You can also ask for the assistance of a real estate agent.
Landlords can specialize in low-income areas or college cities. They can also focus on high-income urban areas. Different techniques need different skill sets, so landlords may do better to specialize. Regardless of specialty, landlords must do applications, credit, and background checks. Adding established methods to a rental property business plan guarantees success. Investors must build a system for every rental property process. So, there will always be a good path of action. Property managers simplify system implementation.
6. Manage The Properties
Managing a rental property involves more than hiring a property manager; it’s about putting mechanisms in place to keep the properties in excellent repair and the cash rolling in. Answer questions like:
- Will you be a landlord? (Or a property manager?)
- Who will choose tenants, and who will be collecting rent?
- Will you make repairs to the apartment buildings? (Or contractor?)
- Who will do yard work?
Budget and time determine your answers. Your rental property business plan should outline all management processes to avoid last-minute surprises.
Why Write A Business Plan
A business plan will help you negotiate the real estate industry. Writing a business strategy clarifies your aims and mission. Include your motivation for investing. This allows you to make investment decisions and build your firm. A business strategy is your future roadmap.
Recurring charges are also a component of your budget. Property management expenses, property taxes, legal and accounting fees, etc. Make sure your company plan includes these.
A business strategy helps when approaching lenders, planning marketing campaigns, and hiring new personnel. Knowing what your business does will make these duties easier (and how). When raising financing for your first deal, you’ll need to convey your business goals to investors. A business strategy reduces stress because the information is written down. If you’re considering launching a rental real estate firm, prepare a business plan.
How To Write An Effective Rental Property Business Plan
Learning how to construct a rental property business plan is something else entirely. The second is key to making the first stronger. Before launching a rental property business, at least know how. Investors must know the most crucial steps.
- Vision and mission statements
- Business and passive income goals
- Success-friendly team structure
- Get a company-wide view
- Create audience-specific marketing strategies and funnels
Is A Rental Property Business A Good Investment?
If a rental property’s net cash flow is positive, it’s a solid investment. Seasoned real estate investors realize that to have a successful rental plan and business, they must do their homework and verify a rental property is a suitable investment. Several measurements assist investors in estimating a property’s profit potential.
Is Starting A Rental Property Business A Scam?
So, is Starting A Tow Truck Business a scam? Not technically. You can make money with this program, but it’s definitely not as easy as they make it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – it doesn’t scale.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months and then your reward is being forced to grind it out for another 9 months before seeing any “real money,” well…that’s not a great deal, is it?
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To Starting A Tow Truck Business?
Yes, there are plenty of other business models to choose from if you want to pursue making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2) You Own & Control EVERYTHING: With real estate investing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “business”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with Starting A Rental Business, you’d probably need to double the number of hours you spend working. Because, again, this program doesn’t scale.
5) Make Money Helping Real People: With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like Starting Rental Property Business which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.