How to Build Real Estate Empire and Increase Your Wealth

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Written By Justin McGill

DealBloom aims to share the latest tips and strategies to help realtors, brokers, loan officers, and investors navigate the world of real estate.

I remember when I first started thinking about how to build real estate empire. It seemed like an impossible task – something that only the wealthiest people could do. But then I realized that anyone can build wealth through real estate, and it doesn’t have to be as complicated as it may seem at first.

If you’re wondering how to get started, we can help.

How to Build Real Estate Empire

Real estate continues to be one of the best ways to grow your net worth. Learning how to build real estate empire can boost your wealth immensely.

By owning a home that you rent out, you can increase your return on investment and have a steady stream of income. But before you fantasize about having a bank account with six figures, you first need to actually do the work.

This article will outline the steps you need to follow to build a real estate business of your own. We’ll tell you why you need to do them, how you should do them, and how to do them right.

Starting as an investor can be intimidating, but many people get stuck at the first step. But those who stop learning are never heard from again, except perhaps in stories about people who failed as real estate investors.

While this post gives you an overview of how to build a rental property business, you’ll need to read more about the industry.

Sometimes, when you read articles about real estate investing, you may come across words or phrases that you do not understand.

You probably have several questions in certain situations.

If you’re looking to build a real estate empire, it’s important to have a firm understanding of the industry before making any big moves. There are plenty of resources available to help you get up to speed, including online courses and educational websites.

Once you have a good foundation of knowledge, you’ll be better equipped to make smart decisions and avoid getting ripped off.

Seasoned real estate investors can enroll in classes that teach about the latest trends and innovations.

You could also enroll in real estate schools to learn what the professionals know. This will help you succeed in building a real estate empire.

As you learn more about the real estate industry, you’ll encounter different strategies. Choosing the right one depends on your budget, your experience, and your time.

Here are some of them.

Long-Term Buy and Hold

Perfect for beginners. You buy property, and instead of selling it right away, you keep it and lease it out. This helps you gain experience and minimizes your risk.

Short-Term Buy and Hold

This strategy is most effective when buying a rundown property and fixing it up. You can then rent out the property and then sell it for a profit after one year or up to 5 years.

Wholesaling

This strategy involves finding rundown houses, putting them under contract, and then selling them to buyers at higher prices.

Flipping

You buy an undervalued house, do extensive renovations, then sell at a much higher price. This is best suited for investors who have more money.

BRRR

Buy, Rehab, Rent, and Refinance. This is similar to flipping a home where you buy a home and fix it up. However, instead of selling the home to turn a profit, you rent it out and refinance.

In addition to deciding how long you plan to keep the property, you will also need to decide what kind of rental agreement you will offer.

While Airbnbs and other short-term rentals can generate a higher rental income, there is also a greater risk involved. This is because there may be times when no tourists or businessmen are coming to town, which could lead to vacancy and loss of income.

Meanwhile, long-term rentals generate more stable income than their traditional counterparts. This is because your tenants will be living there for at least a year, providing you with a consistent cash flow.

As you build your real estate investing business, you can employ both strategies.

Now that you have a better idea of the real estate game, it’s time to go out and start buying properties.

The easiest way to find a rental home is to use online tools like the Property Finder on Mashvisor.

Using the filters on Mashvisor, you can narrow down your search for properties by type, as well as the optimal strategy for renting. The listings also include the asking price.

When you’re searching for a rental, it’s helpful to have as much information as possible. That’s why we provide our rental property calculator with each property. This handy tool allows you to quickly compute the potential rent, vacancy rate, cap rate, and cash flow.

Having this data will be extremely valuable as you’re doing your rental market analysis.

If you want to build an empire of rental properties, you’ll need to be able to find homes that earn the most in as many cities as possible. That way, you don’t have to do multiple searches just to find the most profitable property.

The AI-powered property finder can help you search for suitable investment properties based on your previous search history and past preferences. This saves you the hassle of resetting your criteria over and over again.

You can find off-market properties through real estate agents, online search engines, and networking with other investors.

Off-market properties are homes that aren’t listed on any MLS (multiple listing services). You could buy them below their market value while avoiding competition from other investors.

You can also find homes that have already been sold, are vacant, have renters, and more.

As your real estate business expands, it will become more and more difficult to manage all of your rental properties. While hiring a property manager will cost you some money, it can save you a lot of time and hassle in the long run. If you’re serious about building a real estate empire, then hiring a property manager is a smart move.

A property manager can help you with a variety of tasks, including:

  • Advertising your rental homes
  • Screening potential tenants
  • Collecting rent
  • Enforcing your lease agreement
  • Coordinating and supervising maintenance work and service requests
  • Basic home repairs
  • Handling tenant concerns
  • Keeping you updated on the status and progress of your rental

Because your property manager acts as a proxy landlord, be prepared to pay them 8% to 10% of your rent.

Hiring a property manager could help you get more done and free up your time. However, keep in mind that your profits may be lower.

If you are just starting, finding a competent property management company can be a daunting task. The best way to do this is through referrals from other property owners.

Tell your real estate network that you are on the lookout for a top-notch property management company. The more property you own, the better chance you have of attracting quality property managers.

By this stage, not only are you well on your way to building a successful real estate investing business. You’re starting to see the money coming in as well.

If seeing the money you made from renting out one property gets you excited, imagine how much you can earn if you bought a second property and rented it out.

To do this, you need to get more funds. You can achieve this depending on your chosen strategy:

  1. Long-term buy and hold: You can put aside a portion of your rent money each month to buy another rental property.
  2. Short-term buy and hold: Use the funds you collect from your tenants and when you eventually sell your house at a much higher price.
  3. Wholesaling or flipping: With half of your profits, pay yourself a salary. Then use the other half to purchase another property.
  4. BRRR: When you take out a rental home loan, you can increase your monthly cash flow by refinancing. You can use this money to fund your rental property purchases, keeping your income for yourself.

What is Real Estate Passive Income?

Passive income allows you to have more free time to do the things you love. If you’ve always wanted to travel or spend more time with your family, then passive revenue is your ticket.

Did you know that it’s possible to generate income from stocks without actively trading?

But investing in the market is always going to have its ups and downs.

A real estate investment portfolio is a reliable source of income because your investments are in solid, long-term properties.

If you earn $200,000 a year in salary, your goal should be to earn $200,000 in passive investment income from your investment portfolio.

What is The Fastest Way to Build Wealth in Real Estate?

The answer to this question will depend on the location of the property, the type of property, and current market conditions.

  • Invest in properties that will appreciate over time.
  • Purchase homes that are below market value and sell them for a profit.
  • Generate income through rental properties.
  • Flip homes.

Does Real Estate Create 90% of Millionaires?

Real estate can certainly be a significant source of wealth for many people. In addition, many millionaires have made their fortune through investing in real estate.

How Do I Become a Successful Real Estate Mogul?

First, it is important to have a clear understanding of the real estate market and the factors that affect property values. This will allow you to make informed investment decisions and avoid overpaying for properties.

Additionally, it is important to have a well-defined investment strategy and to stick to it. This may involve investing in a specific type of property or geographic area or focusing on properties that offer high potential returns.

Finally, it is also important to have the financial resources in place to make large investments in real estate. This may include having access to capital through savings or investments or being able to obtain financing from lenders.

How Do I Start Building Wealth with Real Estate?

There are many ways to start building wealth with real estate. One way is to invest in rental properties. You can purchase a property, live in it for some time, and then rent it out to tenants.

Another way is to invest in fix-and-flips. You can purchase a property, make repairs and improvements, and then sell it for a profit.

You can also start by becoming a real estate agent or working as a property manager.

Conclusion

If you’re looking how to build real estate empire, there are several things you can do to increase your wealth. From investing in income-producing properties to focusing on appreciation potential, there are plenty of ways to make money in the real estate market. With a little bit of planning and some help from a professional team, you can be well on your way to building an empire of your own.

Justin McGill