Becoming a real estate tycoon is the holy grail of every investor’s career. If you work in real estate, you undoubtedly want to master the secrets of real estate tycoons.
A realty magnate is a highly successful entrepreneur who has built an enormous realty empire through active or passive investment. It’s not surprising that realty moguls are among the wealthiest billionaires worldwide, with hundreds of commercial and residential properties.
How To Become A Real Estate Mogul teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While each has pros and cons, there is a ton of potential for success investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to think about something seriously:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what How To Become A Real Estate Mogul looks like on the inside, keep reading.
Real estate investment may provide several desirable outcomes, including passive income, regular cash flow, tax benefits, diversity, and leverage.
Passive income can be defined as income you can sustain yourself even if all your investments go down. How do real estate moguls earn so much?
You have probably heard it a thousand times: “Real estate is a classic wealth-building method.” In fact, the term “real estate” has come to mean real property. Initially, an estate was the land property owned or leased by someone.
Money and physical possessions, such as furniture and money, were secondary to productive farmland, rental property, and other assets. For most moguls, real property is still a great way to create wealth. A staggering ninety percent of millionaires were made by real estate investing. Every billionaire from around the world or in the U.S. has invested in realty in some way. If you have the right skills and know-how to create a profitable investment strategy, an average real estate investor could become a mogul.
Those interested in investing in real estate feel they have only two choices: rent or sell a home. Recent years have seen the real estate market diversify, which has created a variety of exciting investment opportunities. There are many ways to flip houses and invest in exotic properties. You can also diversify by buying turnkey rental property or passively investing in other passive options.
For first-time buyers wanting to start renting property, having a clear strategy can make it a reality. It may take a decade to achieve your goals, but it’s possible. These steps will assist you in setting up an innovative strategy to become a real property mogul.
8 Tips On How To Become A Real Estate Mogul Or Millionaire
Investing in real estate is a competitive and strategic business. It doesn’t matter whether the property is residential or commercial, how much money is being spent, or what kind of property it is; everything must have a function. To achieve success as a real estate mogul, careful preparation is essential.
1. Have A Good Business Plan
Developing a solid business strategy is essential for every aspiring reality mogul. Before creating a plan, one must determine the company’s goals and objectives.
Without any clear plan, it isn’t easy to move forward. The same goes for being a successful real property entrepreneur. You don’t need to start by buying fixer-uppers and ripping down the walls.
You must have a solid and long-term business strategy. This applies regardless of whether you’re looking to be wealthy by fix and turn, traditional real-estate development, or buy and keep.
It’s not enough to be able to determine where you will buy property. How much do renovations cost? What can you do to keep costs low without sacrificing quality and design? How will these be promoted? How can they be sold or rented out quickly enough to make your profits maximize?
Before you buy anything, your abilities and interests should be openly discussed. Recognize your strengths as well as your weaknesses.
Don’t make a business plan based on your ability to renovate a property for free. You’ll need to train people and manage the finances.
2. Find Sustainable Real Estate Markets.
Try as you may, even with a well-thought-out business strategy, becoming a real estate tycoon is probably not in the cards for you. We may look to Detroit as an example. Houses there could be reasonably priced. It’s possible that with some work, they may be brought up to the rental code. One cannot, however, transform a modest house into a mansion and demand five figures in rent.
A bubble in real estate is bad news for investors. What are the characteristics and growth of sustainable real estate markets that are growing?
- There’s a balanced housing supply to meet the demand.
- A robust local economy is sure to drive housing demand.
- Finding housing markets with sustainable growth rates is an excellent way to locate them.
Do your research regarding real estate markets. Select a market in which your business plan can be implemented repeatedly. This will enable you to expand your network faster by relying upon the same lenders, real estate agents, property managers, and contractors as other real estate professionals.
3. Narrow Down Your Scope
Location is crucial in the real estate market. The first step in becoming a real estate magnate is to settle in a desirable place. It would help if you located the finest communities whether you are going to invest in rental real estate, acquire land and develop it, or fix up and flip buildings.
Calculating the housing affordability score is an excellent way to identify neighborhoods that will be a good match. It’s possible to determine if most residents can afford to buy a house. That would also not be the case if someone constructed a new apartment building or suburban subdivision.
Do your due diligence about the rules applicable to rental properties.
- Does your city require you to obtain a rental license?
- Do you need annual inspections to inspect multifamily housing units?
- Is it prohibited to rent short-term properties?
- Does the municipality or state impose rent controls?
- This can stop you from making a profit in the event of interest rate increases.
- Are there any specific areas you don’t want to go to because of the regulations?
- Keeping historical aesthetics in mind can lead to entire neighborhoods being a nightmare for developers.
You want to be a real-estate mogul by focusing on a specific area. Once you have bought multiple properties, your investment in time and effort will be well recovered. This is why it’s crucial to put in the time upfront since you will be dealing over the long term with these rules. Real estate investment should be slow if your goal is to minimize risk while maximizing your returns.
4. Build Your Real Estate Team.
Maintaining contact with already established networks of experts is another incentive to specialize. Investors and contractors save less time spent on due diligence.
Before they enter the real estate business, potential moguls need to have a well-vetted network that includes real estate agents, lawyers in real estate, property managers, and financial service providers.
Before you tour a property, be aware of who you would use to secure it and how they would manage it. Before purchasing your first investment properties, you should build a list of recommended service providers.
You can expect to reduce the number of service providers as you acquire experience. One example is when a contractor stops during your renovation to take on a better-paying job. A realtor who doesn’t make an effort to move a property might get dropped.
5. Acquire Your First Investment Property
Taking that first step is the hardest part of any trip. Investing in real estate is much like any other way to generate wealth. It would help if you first eased into the real estate market by purchasing only one investment property. Don’t worry about buying ten houses in ten weeks.
- Do your due diligence.
- Meet your potential team members.
- You will then find your first investment asset.
- Arrange your real estate financing.
- Buy the property.
- Make repairs if necessary, or construct what you originally intended to build.
- Find renters or put them on the market for a profit.
To become a real property mogul, you must complete the process according to your business plan. This is key to your success. Your goal is to have a repeatable, predictable process from start to finish. It doesn’t make any difference if you can renovate 10 houses in ten years if they aren’t sold for profit. The upside to starting slow is that you can avoid mistakes, and you are less likely to make costly mistakes.
6. Step Back And Evaluate Your Real Estate Investments
For the sake of argument, let’s say you’ve already made your first investment property purchase, renovations, and flip. What was the return on your capital? What you accomplished is fantastic. The experience might still teach you a lot even if you didn’t.
- What caused you to exceed the budget for the initial purchase or property renovations?
- Be truthful when you evaluate your mistakes.
- Have you fallen in love with the property rather than assessing it from an economic perspective?
- Have you ever made the error of entering a bidding battle, thereby reducing your profits?
- Have you ever over-built?
This could mean you build a luxury house in a middle-class neighborhood or put amenities in an active community that buyers don’t want or can’t afford.
Do you find that you are making very little profit? Then consider what you can do for your cash flow.
- Does the rental rate seem too low?
- Aren’t you vetting tenants for their ability or willingness to pay rent?
Once you have identified the mistakes, make adjustments to your process. After identifying where you went wrong, you can adjust the process and buy your second investment property. Take a look at the process from purchase through sale and handing over your rental property to a management firm. Consider whether you can purchase the property for less and renovate it more quickly to find qualified tenants.
7. Step Back And Wait
Working one’s way up from nothing to becoming a real estate tycoon wasn’t simple. Leave it for a few months. Examine the health of your business by digging into its financials, assets, cash flow, and debt.
- Check that your property managers keep renters happy before adding to their workload.
- Reduce the amount you pay in rent to cover property taxes and insurance premiums.
- Save at least enough to repay any hard money you borrow to repair your next investment home.
- Verify the investment properties haven’t been damaged by new discoveries.
You will find all the information needed, regardless if you have to add items to your inspection or need to locate another building inspector.
- Be sure you have the financial resources to pay your regular bills, such as property insurance premiums or property taxes.
- Get a tax advisor if you don’t already have one.
- See if your tenants are reliable.
This is the best time to learn how to exterminate someone and not wait to get two renters that aren’t paying. Once you are confident in your administrative procedures, you can begin your refined business process and become a real property mogul. Build up your real estate portfolio, and don’t make additional acquisitions if you don’t want to. You can also use the money for your rental property loan repayments. If you reduce the number of loan payments, your profit margins will grow.
8. Consider Upgrading Or Diversifying Your Real Estate Portfolio
You have many options to diversify or upgrade your real estate portfolio; you can use the 1031 Property Exchange to sell your houses in exchange for an apartment building. Multifamily housing may require you to change your business plan. However, it will provide stable rental income. Multifamily housing is a popular choice for real estate investors who can afford multiple buildings that withstand occasional vacancies.
You can get the cash you need to pay the mortgage by generating multiple income streams through apartments. The best way to build your real-estate portfolio is by purchasing large apartment complexes quickly. Your apartment complex will need to be sold over time. You cannot simply make money overnight and not risk a loss.
The purchase price and rehab cost are directly related to your profit potential. This is why you need precise numbers for NOI or Net Operation Income and a cap that makes sense. Only then can you proceed with the purchase price.
- Let’s say your complex contains 1,000 units. The average annual NOI per unit in that area is $10,000.
- Your annual net operating income would be approximately $1,000,000.
- This number will be reduced by unexpected expenses and unplanned vacancies. The average U.S. vacancy rate ranges from 8 to 10%.
- It’s reasonable to assume that you will only earn 90% of your expected income.
- This is $900,000 per annum for one apartment building.
Another way to diversify your real-estate portfolio is to use 1031 property exchanging rules to sell one or two low-performing single-family houses or try your hand at the luxury estate.
An alternative option to expanding is moving into a different part of the city or neighborhood. A change may be required to shift your investments to a better neighborhood.
Another option is to dispose of the most appreciated properties, pay capital gains and use that money to live.
You can also invest in a real estate investment trust (REIT).
I’ve just shown you a proven way of building wealth through real property. You won’t become a millionaire or a real estate mogul in a matter of days.
It can take years before you make a multimillionaire real estate portfolio with enough income to afford the lifestyle that you want.
This process is great because it’s easy to repeat and can be done as many times as you need. However, although it’s an excellent method to build wealth, the process of investing in a rental property and building a growing portfolio can be slow.
To reach higher goals like becoming a “realty magnate,” “building huge wealth,” or “achieving true financial freedom” in less than ten years, you need to build a solid and reliable business.
The business you create will enable you to leave a legacy of wealth for your family. Many moguls have succeeded in real estate. Take advantage of your existing knowledge to get started.
Are There Alternative Business Models?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
Is Real Estate A Scam?
So, time for the $1,000,000 question – is real estate a scam?
No, not technically. You can 100% make money with this business model, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done upfront & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3 months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My #1 Recommendation For Making Money In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL-TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you, that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities like How To Become A Real Estate Mogul, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.