International real estate can be an amazing investment. But it isn’t accessible to everyone. Now, RealPool is working to change that. Read about the innovative new business model below in this week’s Small Business Spotlight.
What the Business Does
Makes international real estate investing more accessible.
Founder Vlad Lushnikov told Small Business Trends, “RealPool, a startup with a mission to democratize international real estate investment, aims to open the doors of opportunity to a wider audience. Fueled by my own experiences, I recognized the stark inaccessibility of this industry for the average person, despite its potential for excellent returns. Armed with my extensive expertise, I took the initiative to launch RealPool. I have personally witnessed the remarkable returns that international investments can yield, but historically, this realm has remained exclusive, reserved for the ultra-elite. RealPool seeks to level the playing field by harnessing the same sophisticated tools used by high-net-worth individuals, all within the user-friendly interface of our app.”
Business Niche
Using technology to target a unique market.
Lushnikov says, “No other players in the market are pursuing the same approach as us in the realm of international real estate investment. Although there are crowdfunding real estate platforms operating within the United States, their primary focus remains limited to domestic markets, overlooking some of the most lucrative opportunities worldwide. Thanks to our exclusive algorithm, RealPool can identify undiscovered prospects across the globe and make them accessible to a broader audience.”
Business Origin Story
Due to a fascination with real estate markets around the world.
Lushnikov explains, “I’ve always been intrigued by the notion of investing in residential properties. In a world with a population of seven billion people, each with their unique cultures and perspectives, the concept of a home is universally understood and appreciated.
“This fascination drew me towards delving into the real estate industry, particularly the international real estate sector. As I deepened my involvement, working as a global law and tax consultant and wealth management advisor, I began to recognize a stark reality: the majority of the global population lacked access to resources for international investments. These valuable tools were typically reserved for individuals with substantial wealth. It was this realization that sparked the inception of RealPool.”
Biggest Risk
Launching something new.
Lushnikov says, “I’d say we’re in the midst of taking the biggest risk ever by launching this platform. It’s never easy launching a platform that is going to disrupt an industry controlled by very wealthy and powerful individuals, but that’s what RealPool will do. We know we are going to face obstacles along the way, but we’ve accepted that and are looking forward to disrupting the international real estate industry.”
Lesson Learned
Embrace mistakes as lessons.
Lushnikov adds, “If you don’t make mistakes, your company won’t have a sense of resiliency or direction. And so I wouldn’t want to go back and fix any of the previous mistakes I made.”
How They’d Spend an Extra $100,000
Spreading the word.
Lushnikov says, “Since we are launching a direct-to-consumer product, that money can be spent on PR and marketing. We want to spread the word about our platform as far and as wide as possible.”
Fun Fact
The platform is already expanding to new markets.
Lushnikov says, “We currently have properties available in Thailand and Bali. But we’re excited to launch in Europe shortly.”
Have you ever landed on a website that isn’t compatible with your browser? I have, and it’s frustrating, to say the least. By implementing progressive enhancement on your site, you can rest assured that none of your site visitors ever have the same disheartening experience. (more…)
The Department of the Treasury and the Internal Revenue Service (IRS) have announced proposed regulations aimed at providing guidance under a new section of the tax law. This new legislation focuses on disallowing deductions for certain charitable conservation contributions made by partnerships and other pass-through entities, such as S corporations. This move is part of a broader effort to address tax evasion issues linked to syndicated conservation easements, which have been consistently listed in the IRS’ “Dirty Dozen” tax schemes.
Context of the New Regulations
The SECURE 2.0 Act of 2022 introduced new subsections to the tax law under Internal Revenue Code section 170, specifically targeting rules for deductions on charitable contributions. These changes reflect an increased effort by the IRS to combat complex tax evasion tactics involving overvalued conservation easement contributions through partnership structures.
IRS Commissioner’s Stance
IRS Commissioner Danny Werfel highlighted the commitment to clamp down on what are essentially retail tax shelters disguised as syndicated conservation easements. The regulations are designed to protect legitimate conservation easements while ensuring that law-abiding taxpayers can more easily fulfill their obligations.
Implications for Partnerships and S Corporations
The proposed regulations primarily affect partnerships and S corporations involved in making conservation contributions. They also impact upper-tier partnerships and S corporations, along with their partners and shareholders, particularly in cases where these contributions are allocated among them. The regulations disallow deductions if the amount of the contribution exceeds two and a half times the sum of each partner’s or shareholder’s relevant basis in the partnership or S corporation.
Guidance on Statutory Exceptions
Additionally, the proposed regulations offer clarity on exceptions to the new disallowance rule. This includes exceptions for family partnerships and S corporations, as well as for contributions made outside a specified three-year holding period. There are also updates concerning the substantiation and reporting rules for certain charitable contributions.
Strategic Plan and Compliance
This initiative is part of the IRS’s strategic plan to ensure compliance with tax laws by partnerships, other pass-through entities, and their owners. The goal is to foster a more transparent and fair tax system, particularly in the area of conservation easement contributions.
The proposed regulations represent a significant step in the IRS’s ongoing efforts to combat tax evasion and reinforce the integrity of the tax system, particularly in relation to charitable contributions and conservation efforts.
In today’s digital landscape, tools and platforms are constantly evolving, and their ability to communicate with each other becomes essential. As I delved deeper into the world of digital solutions, I was introduced to webhooks—a pivotal tool that addresses this communication need.
As the holiday season approaches, Isabel Casillas Guzman, the U.S. Small Business Administration (SBA) Administrator, calls on Americans to participate in Small Business Saturday on November 25. This day, falling just after Thanksgiving is not just a shopping event but a celebration of the 33 million small businesses that form the backbone of local communities nationwide.
“Small businesses are the heart and soul of our neighborhoods, powering local economies and strengthening communities,” Guzman emphasized. Her message resonates with the spirit of entrepreneurship and community support that Small Business Saturday embodies.
Initiated by American Express in 2010 and cosponsored by the SBA since 2011, this day is dedicated to supporting local small businesses that create jobs, boost the economy, and enrich neighborhoods. Last year, a record high of approximately $17.9 billion was spent at independent retailers and restaurants on this day, according to the American Express 2022 Small Business Saturday Consumer Insights Survey.
The significance of Small Business Saturday extends beyond mere numbers. It’s a day that puts a spotlight on the diversity of small businesses and their contribution to the economic and social fabric of communities. The day encourages shoppers to think locally and acknowledge the impact of their spending on their own neighborhoods.
President Biden’s economic agenda, Investing in America, has also played a crucial role in bolstering the small business sector. Since the President took office, there have been 14 million new small business applications, underscoring a historic boom in entrepreneurship in the United States.
Small Business Saturday 2023 is more than just a shopping day; it’s a symbol of resilience and unity. It offers an opportunity for consumers to show their support for the small businesses that have been essential in driving the nation’s economic growth.
Starting any ranch, particularly one with cattle means making big decisions. Choosing the right location is essential. You’ll need a comprehensive business plan to select the breed for your farm.
The productivity and health of your animals depend on pasture management and building appropriate infrastructure like pens and barns. Successful ranchers have a deep commitment to the health of the business and the animals that involves resilience and dedication. Cattle ranching is a lifestyle that requires around-the-clock work.
The Cattle Industry Today
Cattle ranching is an essential part of the agricultural economy. Much of it involves raising cows for beef but can also include byproducts like leather and milk. The sector employs veterinarians, herders and ranchers, and other people like workers in processing plants.
New breeding techniques and other technologies are changing the industry. Shifting consumer preferences that include ethically raised beef that’s grass-fed and organic is prompting ranchers to change their practices.
There’s also an emphasis on environmental concerns and sustainability.
The Appeal of Starting Your Own Cattle Ranch
Cattle ranching involves the personal satisfaction of maintaining traditions in a tight-knit ranching community. The industry also has the potential for innovation, sustainable practices, and genetic advancements.
Initial Considerations for Starting a Cattle Ranch
As you contemplate how to start a business, particularly in cattle ranching, strategic planning is a crucial first step.
Developing a Business Plan for Your Cattle Ranch
A detailed business plan for a ranch is a road map for success. It needs to set clear objectives and define the direction and purpose of the business. Ensure the goals are SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
A business plan also needs a complete breakdown of expenses like veterinary care, equipment and labor. Remember to add standard operating procedures (SOPS) for grazing feeding, breeding, and healthcare.
Step
Description
Resources Needed
Key Considerations
Market Research
Analyze the demand for ranch products or services.
Market analysis tools, agricultural reports.
Identify the most profitable livestock or crops for your area.
Land Acquisition
Purchase or lease suitable land for ranching.
Real estate agents, land surveys.
Consider land quality, water sources, and location.
Business Plan
Develop a comprehensive business plan.
Business plan templates, financial advisors.
Include plans for financing, operations, and growth.
Legal Requirements
Understand and comply with agricultural laws and regulations.
Legal counsel, agricultural departments.
Ensure compliance with land use, animal welfare, and environmental regulations.
Infrastructure Development
Build necessary ranch structures and facilities.
Construction services, equipment suppliers.
Focus on essential structures like barns, fences, and water systems.
Livestock/Crop Selection
Decide on the types of livestock or crops to raise.
Agricultural experts, breeders.
Choose based on market demand, climate, and land suitability.
Financial Management
Set up financial accounts and management systems.
Accountants, financial software.
Plan for initial investments and ongoing expenses.
Staffing
Hire skilled workers if needed.
Job posting platforms, recruitment agencies.
Consider the expertise required for ranch operations.
Marketing Strategy
Develop a plan to market your ranch products.
Marketing agencies, social media.
Target local markets, farmers’ markets, or direct-to-consumer sales.
Sustainable Practices
Implement sustainable and ethical farming practices.
Sustainable agriculture resources, consultants.
Focus on long-term environmental stewardship and animal welfare.
Forming a Legal Business Entity for Your Ranch
Deciding on the legal structure of your ranch is important. Understanding common business structures can help in making an informed choice..
A sole proprietorship pays taxes on a personal tax return.
A partnership involves two or more people paying taxes on their profits.
A limited liability company has members. These are called pass-through entities, and taxes get reported on individual returns.
Corporations distribute profits as dividends. The shareholders are subject to what’s called double taxation.
States have different regulations and rates for taxes. The federal tax will be paid depending on the entity you choose.
Financing Your Cattle Ranching Venture
Exploring different financing options is essential. A detailed business startup checklist can guide you through the financial preparations.
Farm Loans
Different agricultural loan options, including those offered by the USDA Farm Loans, are available. Don’t forget to separate your business and personal finances before applying. Open a business bank account to start your ranch so you can track income, taxes, and expenses.
You’ll need a detailed, compelling business proposal that outlines risk assessments and potential returns.
Starting a Ranch: Step by Step
Here’s a step-by-step guide to starting a cattle ranch.
Assessing and Acquiring Land for Your Ranch
Look at several factors to assess your business’s sustainability and success.
Cattle need enough space for exercise and feeding, so you’ll need to be sure you can get enough pasture land. Researching the land’s proximity to local markets is essential.
You need to make sure you have enough water. It needs to be clean and plentiful. Consider installing purification systems in the troughs.
Infrastructure and fencing are two more important considerations. Fencing needs to prevent the herd from straying.
Don’t forget to research land use regulations, zoning laws, and possible livestock restrictions.
Successful cattle ranchers lay out whether they will focus on dairy farming, beef production, breeding, or combining the three.
The Scale and Types of Cattle
There are different breeds, like cattle raised for beef and dairy cattle. Selecting the correct number and type depends on market demand and climate.
A Management Plan
A good management plan for cattle farming needs to have all the features looked after, including healthcare, feeding, breeding and handling.
Marketing strategies
Don’t forget to combine digital and traditional channels to highlight unique selling points like ethical farming practices and breed quality.
Sourcing and Managing Beef Cattle
You’ll also need to select suitable breeds and learn how to manage them properly to run a successful ranch. Choose a species suited to the available resources, terrain, and climate. Grazing habits and resistance to local disease are important factors for raising livestock.
The same goes for breeds known for good milk production and growth rates. Livestock management systems must consider nutritional requirements, parasite controls, and vaccinations.
The Cattle Ranching Operations
The entire process of cattle ranching involves several pieces of the puzzle that fit together. As you plan the operational aspects of your ranch, gaining knowledge about investing in a cattle ranch can provide valuable insights.
The equipment should include handling facilities like pens for sorting, chutes and corrals. Branding tools and cattle trailers should be of high quality. The fencing materials you use need to be durable and protect against predators.
Software and technology for livestock management need to include features that track animal health records and performance metrics. GPS technology should monitor grazing patterns and herd movement. GPS-enabled collars and RFID tags work for individual animals regarding disease monitoring.
Breeding and selling need to start with monitoring pregnancies to selling when the animals are mature to the proper channels like auctions or direct sales.
Marketing and Branding Your Cattle Ranch
Marketing and branding are essential aspects of a successful ranch.
A digital marketing campaign can include specifically dedicated social media profiles on Twitter and Facebook to highlight your ranch’s daily activities. A user-friendly website includes suggestions on tour schedules, a product catalogue, and the farm’s history. Establishing a strong online presence is crucial. Following a website startup guide can help in creating an effective digital platform for your ranch.
You can organize farm tours to educate the locals. Collaborating with local schools, restaurants and businesses to promote your products works. Consider setting up a stall at an agricultural fair or farmer’s market.
The brand needs to reflect the heritage of your farm and the ranch’s values. Content can share stories about your sustainable practices. Remember to use interviews and videos. Consistency across all platforms is a must.
Launching Your Cattle Ranch
A few final steps, and you are ready to launch. It’s best to consult an agricultural insurance specialist to get the business insurance you need. Ensure the coverage includes liability for visitors and coverage for the farm and property, including livestock and equipment.
Good distribution strategies need to include building relationships with distributors and local markets. Consider options like farmers markets and online sales to complement traditional distribution channels.
A comprehensive operational plan must cover waste management, feeding schedules, herd management, and other daily routines. Remember to add contingency plans to cover emergencies.
If you’re considering diversifying your ranching business, exploring options such as how to start a goat farm can offer additional opportunities.
FAQs: How to Start a Ranch
Here are some answers to questions ranch owners ask.
What farm loans are there to start a cattle ranch?
You can start a cattle ranch with Farm Ownership Loans. The U.S. Department of Agriculture offers these through the Farm Service Agency. Livestock loans are specifically for buying and maintaining livestock. Operating loans are short-term and designed to cover day-to-day business expenses.
Is owning a cattle ranch profitable?
How much money you can make on a cattle ranch depends on several factors. Experience, costs, market conditions and the location and size of the farm itself all make a difference. Don’t forget you’ll need to pay state and federal taxes.
Can you start a cattle ranch from scratch?
You can start a ranch from scratch, but you’ll need to be educated on local regulations, land suitability and cattle management.
How much money do you need to start ranching?
Research says that you can start a small-scale ranch for $50,000 USD to $500,000 USD or more. Those costs vary significantly depending on location, cattle breed and operational expenses for this type of farm operation.
How many cattle do you need to start a ranch?
There’s no absolute fixed amount, but some considerations include your budget available for purchasing cattle. The amount of grazing land is another factor for successful cattle ranches. One general rule is one to two acres per cow/calf pair for grazing, but this varies.
