{"id":61936,"date":"2014-09-14T06:00:18","date_gmt":"2014-09-14T12:00:18","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=61936"},"modified":"2021-03-16T10:23:35","modified_gmt":"2021-03-16T16:23:35","slug":"2014-09-14-build-real-estate-empire-ground","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2014-09-14-build-real-estate-empire-ground","title":{"rendered":"How to Build a Real Estate Empire From the Ground Up"},"content":{"rendered":"

Real estate is a great business, not just because it can create enough income to allow people to quit their job or retire early, but because it can make you rich. \u00a0Last week I wrote about why it is important to think big<\/a>, and this article is all about thinking big!<\/p>\n

How can you go from nothing to a multimillionaire with real estate?<\/p>\n

The First Step to Building an Empire is Deciding the Route\u00a0to Take<\/h2>\n

When starting out in real estate, the first question many consider is whether to buy and hold or fix and flip.<\/p>\n

I have 11 rentals and 10 fix and flips that are in various stages; thankfully two are under contract! I love to use the income from fix and flips to buy long-term holds. I think if you want to really make it big in real estate you have to use every aspect you can.<\/p>\n

Why not fix and flip and<\/em> buy and hold?<\/strong><\/p>\n

The Benefits of Flipping and Holding<\/h2>\n

Many properties work great for flipping and others for holding.<\/p>\n

If you can do both, it moves you along the wealth building road. \u00a0It is great if you can learn to invest with little money down, but the truth is you will make more money if you have some skin in the game. \u00a0If you can begin flipping homes to build up capital I think that is a great way to build up money to buy long-term rentals.<\/p>\n

If You Don’t Have Money to Hold Properties or Flip<\/h2>\n

Getting started in real estate is not east without money, I don’t care what anyone says.<\/p>\n

It seems like most real estate investors without money want to wholesale to start out. \u00a0I am okay with wholesaling to build up cash, but it’s not easy.<\/p>\n

If you take the time to learn direct marketing and wholesale off market properties, you can make good money.<\/strong>\u00a0 With that money you can start holding and flipping. \u00a0If you expect to make a killing off wholesaling by Realtors handing you deals off the MLS, think again. \u00a0It will take hard work and dedication to be a great wholesaler.<\/p>\n

Related:<\/strong>

I know an investor who flips over 1,000 homes a year.<\/a><\/p>\n

Focus on Buying More Rentals to Make Your Life Even Better<\/h3>\n

I have a goal to buy 100 rentals, which will provide an awesome income, but that may not be big enough or fast enough for some people. \u00a0Some of use have to pay for our fancy cars!<\/a><\/p>\n

Focus on Big Projects with Huge Upside<\/h3>\n

You could move on to big commercial or multifamily projects that are riskier, but come with a higher profit potential.<\/p>\n

Start a Business<\/h3>\n

Many of us have always wanted to start a business that we thought of long ago. \u00a0We never did because it was risky, we didn’t have time and we were scared. \u00a0Having a sold income takes care of most of those problems. \u00a0The really rich get rich from starting their own business.<\/p>\n

Related:<\/strong> How to Get Rich: 7 Awesome Ways to Build Big Wealth Today<\/a><\/em><\/p>\n

Many people get very rich in real estate, but it takes more than a few flips or rental properties. \u00a0The ones who get really rich use development, large projects or flip and hold for years. \u00a0Don’t be afraid to think big and start planning out how things are going to move forward.<\/strong><\/p>\n

A Quick Recap<\/h2>\n

1. \u00a0Make enough money to start flipping through a job or wholesaling<\/p>\n

2. \u00a0Start using that money to buy rentals that will produce income<\/p>\n

3. \u00a0Keep building up the amount of rentals and flips you are doing<\/p>\n

4. \u00a0Use the comfort from the rental income to build big or go after your dreams<\/p>\n

Conclusion<\/h2>\n

You don’t have to follow this plan — you could go straight to the make it big part, but it will be harder without money, experience or the comfort level.<\/p>\n

Some think having a safety net\u00a0is a bad thing because you know you have something to fall back on. \u00a0Without any cushion, you have to succeed or starve. \u00a0I think you can do it either way, but doing it with a level of comfort sure reduces the stress and chances of a massive stoke.<\/p>\n

Are you approaching your real estate business with a safety net or do you err more towards the side of reckless abandon? What business would you start after raising enough capital?<\/em><\/p>\n

Let us know in the comments!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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