Getting Started in Real Estate? Here’s a Useful Primer!
If you are just getting started there are several things you will need to know regardless of whether you are planning of buying or lease property.
- Are you buying/leasing in your name or under a separate legal entity? This is a critical question to answer as it can have serious tax implications on you and anyone that is impacted on your tax filings. Speak with your accountant to learn about the different scenarios, and how each impacts your goals as well as your personal liabilities.
- If you are using a legal entity, is it registered with the NC Secretary of State? All legal business entities are required to register with the NC Secretary of State. Whether leasing or buying, this is a necessary step if you are using a legal entity. Your accountant or attorney can help you.
- Do you have a handle of your personal financial picture? There are a lot of ways to enter the world of real estate, some of which may not require much, if any, money on your part. That said, you need to know your personal financial picture to make certain you understand the available options and eventual tax implications. Download a free Personal Financial Statement form prepared by the US Small Business Administration.
- Do you have a Business Plan? Business plans are integral, particularly if you plan to leverage financing and/or lease property. Having a well prepared draft of your business plan goes a long way in gathering support for your goals, not to mention setting a path to achieve them. There are many great resources available to creating a business plan. We highly recommend hiring a professional to help you identify all the aspects and factors required. There are also free version available through the US Small Business Administration and BPlans.com.
There are some other considerations you will want to keep in mind that will help you achieve success and piece of mind in the process:
- Title search
- Attorney for closing or lease review
As an experienced and longstanding real estate firm serving clients across North Carolina, we have a multitude of excellent and trusted referral resources we can share with you to help with these and many other important considerations.
If you want to learn more about how we can help you, please contact us by calling 919.675.2750 or email our team.