What small businesses compliment real estate investing?

Question

I am interested in owning various types of commercial & multifamily real estate but I need income to support these goals. What small business has synergies with investing / owning commercial & multifamily real estate?

James Wise · Answer

I own a Real Estate Brokerage, Construction company, Property Management company, Title company & an Insurance company. All of these work great as they coincide with investing & need physical offices which are of course housed in my commercial buildings.

Kris L. · Answer

A couple things that could work well nearMF are storage units and Laundry facilities.  Depending on your specific tenant type, a nearby gym may also be a great opportunity.

Jacob Sampson · Answer

I think looking through your expenses is a way to evaluate great ancillary business ideas.  As an example, we have started a sewer and drain cleaning company because of the amount we were spending on it.  If you have a large enough pool of captive customers it makes these sorts of businesses great additional opportunities.

Another example we have been toying with is a carpet cleaning business.

The list is really endless, you could start a property management firm (though , I don't recommend this), a lawn care business, etc.

Just a couple of random ideas.

Taylor Roeling · Answer

@Tom Keller This is an interesting question that is definitely going to be different for everyone! Having physical offices is definitely an advantage, but honestly it is probably personal preference and what works best for you as an individual. I liked Kris's idea of a nearby gym and also laundry units - those would be advantageous for sure.

Alina Trigub · Answer

@Tom Keller

There're actually tons of businesses. Not sure if you're planning to buy an existing one or start from scratch.

Owning and operating a property management company is a huge complement to owning a real estate;

owning a bookkeeping or CPA company that serves real estate investors;

a construction company is another great example of a small business.

Again not sure where you're heading with your question, so hard to give a precise advise.

Jesse Levitan · Answer

@Tom Keller

I think that there's no reason why you can syndicate these deals and use OTM while taking a piece of equity for yourself as the General Partner.

Finding a mentor is crucial. There are a ton of real estate investors/entrepreneurs willing to help out.

Tim Bratz has been incredible helping me on my journey. He's awesome if you want to get into the multi-family space.

And of course, there are people like Grant Cardone posting content regularly.

Hope this helps even a little!

Account Closed · Answer

@Tom Keller

I can speak to what I know which is Multifamily.

The beauty of Multifamily syndication, which is a turnkey model for the Equity partner/s, is the team aspect of it.

A syndication team allows you (Active or Passive) to work in your field and continue to make $ while the team of operators run the asset/business.

If you are part of the active operating team you can run a small business or work in the corporate world while doing your fair share of the work too.

Hope this was helpful-

Dino

Frank Wong · Answer

Hi Tom,

You said,

"I am interested in owning various types of commercial & multifamily real estate but I need income to support these goals."

Sounds like you need more income and more savings.  Based on your post you don't actually own these properties just yet.  These are things you want. If that is the case you are going about it all wrong. You currently have nothing to spawn off from multifamily investing.  What you want to do is increase your focus so you can make more money off of what your expertise is now.  How are you going to make more money off of commercial if you are not in the industry now and have the skill set?

For me I am a realtor, I represent clients and I am an investor.   My main source of income is representing clients then my 2nd source is spawning off from that through RE investments.  See how that works.  I would be going about it all wrong if I said I am a realtor and I want to make more money studying to be a programmer part time and do freelance work so I can save and invest.  I would be better off just spending more time and energy being a realtor and making more sales.  I am already an expert at that.  Why deviate from my expertise.

Focus on one thing, master it, dominate it and see your income rise.

Simon W. · Answer

I have an accounting company, a real estate consulting company, an Equity Investment Company, and Real Estate Investment company.

You can see how they work well with each other.

Dutch Langley · Answer

We have owned a renovation company for years (licensed GC) and will be reinstating our real estate brokerage license.  Compliments what we are doing with flips very well.

What small businesses compliment real estate investing?

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