Taking your real estate investments from a mere “hobby” to a serious business requires a paradigm shift.
You need to think of yourself as the president of a real estate company.
Any mature company has systems and infrastructure, people with roles and responsibilities. Your real estate business can too.
There are a lot of hats … marketing, finance, operations … and we share tips on how to more effectively tackle each of those areas.
Taking care of business behind the microphones for this edition of The Real Estate Guys™ radio show:
- Your let’s-get-to-business host, Robert Helms
- His busy-body co-host, Russell Gray
Broadcasting since 1997 with over 300 episodes on iTunes!
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Getting what you really want – freedom of TIME
While we all like the idea of passive income, when you peel back the onion layers to what real estate investors really want … they want freedom of TIME.
Time to enjoy the money they’re making.
Time with the people they care about most.
Time to focus on their true passions.
While real estate investing can get you there … too often we see real estate investors who are not free at all.
For example, we know a guy who owns a huge apartment building, bringing in more than a million dollars a year … yet he’s trapped in the property manager’s office 16 hours a day.
As Robert Kiyosaki talks about in his books, how do you go from the “S” quadrant (self-employed) to the “B” quadrant (business-owner), where you have freedom to focus time on the bigger picture of your business?
Marketing – treat your business like a business
Marketing is essentially letting people know you exist, giving them a taste of what you can offer them, and letting them decide if they’re interested.
How are you marketing yourself?
Anyone can start right now to work on their professional image. Do you give the right first impression when people meet you? Do you have a firm handshake? Do you look people in the eye? Do you show interest in them, or always turn the conversation to yourself?
If you’re wanting to work on the big deals, people need to see you as a professional they can trust to manage money.
It’s in the little things.
For example, when you get out networking with potential real estate partners, have a business card. Not one from a company you work for, but for YOU – your real estate business.
We recommend creating a website (there are lots of simple templates out there!), and having a professional voicemail greeting.
Put yourself in a position so that when deals come up, you’re top of mind.
Finances – prepare NOW for future opportunities
Just like playing Robert Kiyosaki’s “CASHFLOW” game, every time you make a move, think ahead.
As a real estate entrepreneur, you have to discipline yourself.
Otherwise, when you discover a PERFECT opportunity to invest, but don’t have the credit score you need … you’ll see it can be expensive not to be prepared.
Three things to do NOW so you’re ready to jump when the chances come up:
- Meet with your mortgage professional ahead of time. Learn where you stand financially and what kind of loan you could get. After you have built up some investment debt, visit your mortgage professional again, since your qualifications might have changed.
- Manage your credit score proactively. Get it where you need it to be. You’ll thank yourself later.
- Build a list of investors. (This is for those looking to syndicate and invest with other people’s money.) You’ll want a bigger list then you need. Ask questions now so you understand the profile of your investors: their timeframes, their risk comfort, how much capital they can offer. These are all good things to know in advance.
Operations – create a team that supports you
If you’re a one-man or one-woman band, you may not think about having a team.
You might be a super-efficient get-it-done person, but let’s be honest: We’re all human beings with a limited capacity.
You need systems and procedures for onboarding, operation, disposing, and managing properties. How much freedom is there, if everything that has to be done is on YOUR plate?
It’s not being “cost effective” to learn from scratch how to do everything. Your TIME is valuable, remember? If you want to be the highest paid person in the room, you need to start to think like that.
As an entrepreneur, it’s NOT your job to know everything!
No, entrepreneurs don’t think that way. You build the team. Your mission is to see the big picture and give the team direction to achieve it.
It takes trust to let go of the things you usually do, but when you build the right team, you go from a small-time operator to BIG-TIME business owner with more free time.
When we say “team,” we’re not talking employees. Your team are the professionals around you that will help you at every stage: mortgage professional, property manager, legal counsel, etc.
Leadership – growing your business
When you’ve marketed yourself, beefed up your finances fitness, and built a team to execute the details, you can lead your business into bigger real estate deals.
Remember … growth comes from stretching outside your comfort zone.
Many people are out there have more money than they have time. When you open up YOUR time to focus on building your business, they will want to do business with you.
This is the beauty of syndication.
With an efficient business model, you’re able to qualify whether or not potential investors are worthy to be your partner.
Think as a BUSINESS, work as a BUSINESS, and you’ll be surprised at all the BUSINESS you’ll create.
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The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training and resources to help real estate investors succeed.