Investor · Marietta, GA · Member since 2016 · 54 posts · 10 votes
I own a few properties, and I've wanted to really put my knowledge of taxes/business to work for me. I've been wondering if anyone here has done much with buying or starting businesses that are related to the real estate world, even if tangentially. For example, if you own a number of SFHs and pay for lawn maintenance, have you ever considered purchasing/actually started a lawn maintenance business? Maybe you realize how insane of a margin you imagine floor installation companies are getting in your area and want to join in? Whatever your reason, I'm interested in hearing about it. I'm also quite interested in further exploiting the tax benefits of owning a business (rather than paying yourself a high salary as the owner, push money into a 401k to lower your tax bill, etc.)
Developer · Fayetteville · Member since 2016 · 91 posts · 57 votes
9y
@Jonathan Roveto there are pros and cons to both. The pro with having an additional business with your own real estate investments is that you can save a ton of money on repairs by having the service done in house (especially with property management.) You also get the advantage of an extra flow of income by others using your service. The con is that it will add more to your plate to get this additional business to become profitable, you may or may not be able to continue your investments the way you want because you will take your focus off to create this new business. I would suggest that if you are seriously thinking about starting another business that you have someone who you trust and is competenet to run one end of the business so that you can focus on starting up another. Make sure that your first flow is stable enough to the point where you don't have to pay attention to it anymore and that it can run on its own without you being active in it.
Investor · Marietta, GA · Member since 2016 · 54 posts · 10 votes
9y
@Brian Wheeler Those are definitely the factors I have been thinking about. This is why I have also been thinking about partnering with someone already in a business. Maybe someone simply needs a partner that can provide assets that they don't have (more stable funding/credit source, tax advice, marketing, etc.)?
Developer · Fayetteville · Member since 2016 · 91 posts · 57 votes
9y
You can defenatly try. Make sure if you look for a partner that they have two things, 1. skills that you don't have or can do better than you and 2. The same vision and goals.