1. Form your LLC or S-Corp in Michigan:
These 2 are the most popular business structures that I have seen real estate investor's use over and over again in Michigan. I am not, repeat not, a fan of people putting (rentals or flips) houses in their personal names or writing checks from five different accounts for a rehabbing a flip.
If you are confused about where the line is between your personal and real estate investing business in Michigan....just think what IRS is going to think about your business when they get your tax return next year with six flips spread all over your life?
This is one of those fundamental basic lessons in starting your real estate investing business in Michigan that you might be thinking... come on everybody does that. Well you don't see or hear what I do on a regular basis which is a terrifying number of people owning rental properties in their personal name or many investors thinking that they will 'get around to it' after they have done couple of flips.
Bad idea. Do it right from Day 1 before you start flipping.
2. Open a business checking account:
And write all your rehabbing expense out of it. Get a VISA checking card from your bank preferably with rewards points attached to it. Make a habit to run all your business expenses out of your business account no matter how small they are. It is extremely important to do if you are doing your real estate deals with OPM.
3.Make a Facebook business page for your business:
Don't waste time trying to learn how to make a website or use one of the terrible templates that came with your domain name. They give your business a bad name. Instead go where every smart company in the world is right now - on Facebook 'cause that is where 600,000,000 people are almost every day. Read my guide on how to use Facebook Pages for your Michigan real estate investing business here.
4. Get Google Voice:
If your job requires you to 'vanish' into your cubicle for extended hours and there is no way that you can pickup your cellphone; use Google Voice that gives you a local phone number (I am not a fan of 800 toll free numbers) which works like a regular phone number and you can make it ring to your cellphone or any other phone number but you can also use it for only getting voice mails with a twist: when somebody leaves you a text message, Google Voice transcribes it and emails it to you. And yes it is free for all USA calls.
5. Do you need a mailing address? Why?
REO agents (meet them at their office); Mortgage brokers (their office); private investors (Starbucks); families buying your flips (at your loan officer or title company conference room). So don't waste any time in figuring out what address to put on your business card. The new rich in America are the ones who own their time and are not tied to any thing. The office address is necessary if you are planning to hire 40 employees soon. You and me don't need it.
6. Get business cards.
VistaPrint.com or Overnight Prints are great companies who can get your business cards to you for couple of bucks very fast. Once you have them - exchange them. That is what business cards are for. But please don't go to a networking meeting at a REIA or at my events and put a business card at every table. It is so rude and spammy to do so.
The idea is to exchange business cards with people who are interested in talking to you more about some part of your flipping business and not throw it from the second floor balcony of the 12 Oaks Mall. Put your Google Voice and Facebook Page address on your business cards so people know how to reach you back and not just your email address.
