Business Management

Owning and Growing Your Real Estate Business

Expertise: Real Estate Investing Basics, Landlording & Rental Properties, Real Estate News & Commentary, Mortgages & Creative Financing, Real Estate Wholesaling, Personal Development, Flipping Houses, Business Management, Real Estate Deal Analysis & Advice
189 Articles Written

Have you heard the one about the entrepreneur who took his employee to the top of a tall hill and looked out over the vast landscape below? He put his arm around the employee, pointed out towards the horizon and said, “If you work very hard and strive to be successful in my organization, all of this can be …. mine.”

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While this doesn't cast entrepreneurs in the best light, I think there is a lot of truth behind the story. I remember working my tail off for a fortune 500 company for years before I jumped ship to start my real estate business. I was billing clients at a rate 6 and 7 times what I was getting paid. I eventually came to the conclusion that if I really wanted to get ahead, I needed to find a way to put my time, talents and energy into something that was going to produce real income for me, not just the company I was working for.

Interestingly, the book, "The Millionaire Next Door" quotes a statistic that less than 20% of the workforce is self-employed and yet they make up two thirds of all the millionaires in the United States. I'm not saying the only path to wealth is through owning your own business, but it's definitely a more common path for most wealthy individuals. (also interesting is the fact that the real estate industry has created more millionaires than any other industry)

As somebody who has started my own business and slowly added employees and contractors over the years, I can definitely attest to the fact that it takes help to build and grow a business. I worked by myself for the first 6 months before I added my first employee. Since this time, I have added a number of people to our company to enable the business to grow. For entrepreneurs, growing a business almost always requires the ability to leverage the volume of work by adding additional workers.

As a real estate investor, this also holds true; it is almost impossible to grow a real estate business without hiring help. However, adding workers and delegating tasks doesn’t necessarily mean adding employees.  In many cases, growing a real estate business will require assembling a team of professionals and contractors to help in various aspects of the business. The great thing about hiring contractors (as opposed to employees) is the ability to avoid the commitment and tax liability associated with a true employee.

Real estate investors that want to expand their business almost certainly need to know how to leverage additional workers in their business. Next week I’ll be compiling a list of hiring strategies that involve leveraging additional workers to complete common tasks in a real estate business without the commitment of hiring true employees.

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 hou...
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    Replied over 8 years ago
    I use contractors to do all the major rehab work. Handyman types to do maintenance work on my rentals. Here in Illinois, the workers comp and tax rules are so onerous, I would really not want to hire an official employee. Will continue to use contractors and freelancers. Be careful when hiring employees. It is very difficult to get rid of problem renters. It is much worse getting rid of problem employees.
    Karen Rittenhouse
    Replied over 8 years ago
    Gary: I started my real estate investing business in January 2005. I worked it myself for 2 years. I now have 8 full-time employees + all the contractors and subs + our CPA + attorneys. It’s amazing how the business can grow if you let it! I love investing and I encourage EVERYONE to buy real estate! Looking forward to your posts.
    clifford watson
    Replied over 8 years ago
    Well i am still green but love the idea of starting my own real estate business. thanks for all the information about building your team.
    Replied over 8 years ago
    Ken, another fantastic article. Hiring help is the ONLY way to grow your business. No matter how motivated you think you are, you can’t do all the work on your own. Start focusing on outsourcing as soon as possible. The quicker you start thinking this way, the sooner your business can grow as big as you want it to. I’ve been focusing on hiring unpaid interns to grow my real estate wholesaling business. I teach people how to wholesale then split profits with them 50-50. This is by far the best way to grow a business with little risk.
    Quinten Jones Real Estate Agent from Grass Valley, California
    Replied over 4 years ago
    What a great read. I am a newer Real Estate Agent with the goal of operating a successful Real Estate Investment business. On the Real Estate sales side of things, I am already looking at the possibility of hiring help and putting together a team. I now realize that I can’t possibly do everything on my own. Growing a successful business requires a team, it definitely will make a difference.