Most of my readers know that I prefer real estate investing over owning any business. But I am involved in many businesses such as my real estate syndications, the education company, the tax reduction company, the real estate management company and soon we will be launching a full fledged crowd funding website and portal. In all of my business listed above there is a direct connection to REAL ESTATE. As I analyzed each business I took time to compile a list of criteria for an “Ideal Business”. Please read it and add to it as you see fit in the comments below.
Here is my list so far:
1) Unlimited Global Market
2) Product needed by people (a basic human need)
3) Low to no market price resistance
4) Profitable through residual income
5) Unique values not available anywhere else
6) Minimum labor
7) Low overhead
8) Low inventory requirements
9) Low capital cost requirements
10) Low to no credit required
11) No equipment
12) Income in cash (no account receivables)
13) Fewer to no government regulations or intervention
14) No complicated permits or licenses to own or operate
15) Portable – movable or can be handled from anywhere
16) Interesting, fun, intellectually stimulating
17) Truly helps others
18) Compounds over time
19) Frees your time – controlling schedule
20) Several avenues of profit
21) Low taxes (incentives and rebates)
22) Easy to pass on (to loved ones)
23) No direct exchange of unit of time for unit of income
24) Can be systematized for predictable work and returns
25) Can be automated through people and processes
26) Can be leveraged (bank desirable)
27) Can be scaled and expanded through duplication (going public)
28) No special degree or complicated/on going education
29) Can work through different economic cycles (up and down markets)
30) Gives you a great reputation and support from others
Again, feel free to add to it in case you feel I missed something. And BTW if you know what kind of business that could be— please share it with everyone you know. The closest I came up with was real estate.
Cherif Medawar
CEO Founder of the ideal business
CrowdFundExpress.com
Launching in the 2nd quarter of 2017
Once we get final approval from FINRA and SEC
Make money in RE:
1) Buy and sell
a) Buy and sell as is
b) Buy, fix and sell
2) Buy and hold:
a) Buy and hold based on per unit price
b) Buy and hold based on a per sq ft price
Sooner or later you will mature enough to:
1) Buy and hold instead of keep buying and selling
2) Buy and hold the type of properties that require the least amount of marketing, management and finance.
Lose money in flipping RE:
1) Buying at a high price
2) Buying at the wrong time/market
3) Buying in the wrong place
4) Buying the wrong property with physical obsolescence
5) Fixing at too high a price
6) Fixing too much – too little or the wrong things
7) Under marketing property
8) Selling at too low a price
9) Having no cash reserves
10) Having wrong people involved (partners, investors, contractors, brokers, bankers, appraisers etc.)
Lose money in holding RE:
All of the above plus:
1) Renting to the wrong tenant
2) Bad lease, price and terms
3) Not maintaining the property
4) Not resolving matters with finality
Obviously this is a very short list. Please give me feedback and let’s add to the list of how and why some people lose money in real estate.
It has no real estate assets held under its name. Capital is used in MIGSIF LLC, and properties are held under MIGSIF LLC or its subsidiaries or related entities.
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