If you’re looking to build a real estate real estate property in the United States, you’re probably wondering how you can get started.
It’s a tricky process that is often complicated, but not impossible, according to Dan Lebowitz, an associate professor at the University of South Florida’s school of business.
Lebowiz explained in a new video for Recode that if you don’t have an idea of what you want to do, you probably won’t be able to do it.
In the video, Lebowitt outlines how you should approach your first real estate venture in your home country.
For the rest of us, however, this video may help us figure out where to start.
If you want your first business in your country to succeed, LeBowitz said, you need to start with a good real estate idea.
“You want to be very clear, in the beginning, what the project is about, what you’re going to do to help that, what your goal is, what’s the cost,” Lebowits said.
So what does a good idea have to do with real estate?
First, you have to be clear that the real estate you’re building is not your property.
“Your real estate is a commodity,” LeBowith said.
You can sell it, but you cannot sell it for more than a certain amount.
“So, what I would say is you want the property to be in good shape and be in excellent condition and be able and willing to sell it,” he said.
Second, you want it to be able be used to pay rent and utilities and other bills.
“If you have a business that’s just to make a living, that’s not going to work,” Le Bowith said, noting that this is where you should focus your attention.
“It doesn’t need to be a business,” he continued.
If it’s a family-owned business, then you may want to hire employees to make sure you’re making your payroll, which is important to make it as profitable as possible.
You’ll also want to use the property as collateral.
“I’d like it to have the right sort of collateral, because it doesn’t have to come from the bank,” LeBowith said of collateral.
You want it at least 50 percent cash and 50 percent equity, so that the bank won’t take any interest on the loan.
Lastly, you’ll need a bank, a bank representative, and a lawyer to help you get the property off the ground.
Le Bowitz recommends that you start with someone who is willing to handle the paperwork.
“Because of the complexity of these things, it’s important to know who you’re dealing with, and you’ll have to figure out what you can do to meet the financial needs of the business,” Lebowith explained.
For more, check out the video below.