Business Management

What Infrastructure Should You Have in Place Before You Buy That First Property?

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
234 Articles Written
women-investors

Having the right infrastructure in place can mean a lot of things. It can mean who you have on your team, who your real estate agent or property manager is, or what maintenance person or contractor you hire. It can also mean what kind of accounting structure, bookkeeping, or legal strategy you have. There are a lot of different ways to segment having the right infrastructure. Today, I'm going to talk about infrastructure, and I'm going to share the things that I've done, the mistakes that I've made, and something you'll be able to use moving forward. I don't want to go into too much detail because it can become overwhelming, and I prefer to stick to the basics.

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Do Your Due Diligence—But Not to the Point of Inaction

Ultimately, the most important thing is you just have to start. The more that you get consumed in the various legal structures, accounting and depreciation, and various markets and investment strategies, the more you’ll think yourself in circles. Still, make sure you do your due diligence. Get online and immerse yourself in anything and everything real estate-related. You have to then select a strategy that fits your desire the most. Once you find that specific strategy, scratch the surface from a legal and accounting standpoint. Now, please understand that every accountant and every attorney has their own ways of perceiving the law and tax code. Not all of them are right and not all of them are wrong, but I think you should get multiple opinions from multiple people. Once you start to get the same answer from everyone, you can start to determine the right way to proceed. Just be sure to set up relationships with a few key influential people who can help you on that journey.

Related: 4 Ways Systems Make Landlording Easier, Simpler & More Profitable

You have to start. Simple as that. Stop procrastinating. Stop spending years of doing research. Time is going to fly by, the opportunities are going to vanish, and you’re going to be left with a bag of crap called “I haven’t done anything.” I believe that gaining firsthand experience, even if you make a mistake, will make you better. You will learn from that mistake, and you won’t repeat it again. You’ll keep growing and get bigger and better with every transaction.

Learning From Mistakes as Your Business Grows

Personally, when I started investing, I did not have the right infrastructure. I didn’t work with the right people, I didn’t have the right legals in place, and I didn’t do bookkeeping or accounting. I’ll tell you what: It came back to bite me five years later. It was a nightmare trying to get these things in place. I had to do a full-blown corporate restructure. I had to do all kinds of crazy accounting and bookkeeping to make sure all the ducks were in the right row.

Now, I have no regrets because it made me better and who I am today. I’m running multiple companies so the operation is huge, and I guess that’s why I made a lot of mistakes—it’s very hard to catch it all. I’m not sure how many of you out there have desires to scale to 100 deals a year as I did, but when you scale that big, a lot of things happen that you need to fix. But again, ultimately, you have to start. That is my message to you today. And if you don’t start, you’re going to be scratching your head in the years to come regretting not starting. You’re not going to regret the mistakes that you’ve made—you’re going to regret not starting.

So when it comes to the infrastructure, everyone is going to say there are different segments to it. I think that you should fully immerse yourself in everything real estate. Pick your specific strategy, scratch the surface as best you can from a legal and accounting perspective, set up relationships with the right people, then just start. Start slow, start small, make mistakes, learn from the mistakes, and don’t repeat them.

That’s my two cents for you. I wish you all the best and much success.

If there’s anything that I can do for you or I can help you, comment below.

I’m pretty well versed in a variety of real estate investment strategies. I’d love to tell you what I’ve done well and done wrong.

Engelo Rumora, a.k.a.”the Real Estate Dingo,” quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties. He runs runs Ohio Cashflow, a turnkey real estate investment company in the country (Inc 5000 2017 & 2018) and is currently in the process of launching a real estate brokerage called List’n Sell Realty. He is also known for giving houses away to people in need and his crazy videos on YouTube. His mission in life is to be remembered as someone that gave it his all and gave it all away.

    Mohammad (Asad) Asaduddin Wholesaler from Houston, TX
    Replied 8 months ago
    Good thinking Engelo. My weakness is internet and social media marketing. Any suggestion on how to manage this monster is welcome. Also about hiring help I have learnt that going for the cheapest does not pay in the long run.
    Engelo Rumora Specialist from Toledo, OH
    Replied 8 months ago
    Hi Mo, You just need to get in and do it yourself to start/learn. One thing will lead to another. Start recording with your phone and post it to YouTube. Over time you will get to hiring a videographer to do it for you. Same with social media. Start posting yourself and then over time you will be able to hire a marketing person. Keep costs low and drive revenue. Get some $$$ in your pocket before you start spending money on help. I wish you much success
    Sefa Demirtas
    Replied 8 months ago
    I like the message but that’s nowhere close what the title is promising. To all bloggers out there, please avoid using catchy titles if you are not going to give details about it, not even a general guidance in this case. I would still read this post if you had a title like “Don’t get stuck analyzing, you need to start somewhere.”
    Patrick McMahon Investor from Parkland, Florida
    Replied 8 months ago
    +1 for misleading title. I’ve been doing real estate seriously for about 10 years and thought it would be a nice self-check to see what systems he advises. But the article didn’t have any details. Good suggestion by @SefaD
    Ross Martin New to Real Estate from Greenville, SC
    Replied 8 months ago
    Yeah it seems most of the people actually doing real estate trying to teach those of us who either aren’t yet or just starting forget about the mechanics of how all of this works. Like… specifics.
    Engelo Rumora Specialist from Toledo, OH
    Replied 8 months ago
    Thanks for your comment Sefa (And the others). My apologies that you are disappointed with my blog. I’m glad that it least it got your attention and thanks for taking the time to respond. Much success
    Jerry W. Investor from Thermopolis, Wyoming
    Replied 8 months ago
    Engelo, Very good article. It is impressive how far you have gone from when I first saw your posts. You were obviously good when you started, but you have a wisdom about you you didn’t have back then. Thanks for sharing what you have4 picked up.
    Engelo Rumora Specialist from Toledo, OH
    Replied 8 months ago
    Hi Jerry, Your kind words are much appreciated. Especially coming from a sophisticated real estate investor like yourself. I guess “time” does it’s thing as long as you stay in the game long enough lol Thanks and have a great day.
    James Cook
    Replied 8 months ago
    Did anybody else think that picture of the girl under the title of this article was Engelo Rumora? It sounded like a strange name for such a pretty girl, but why else would that picture be there?
    Engelo Rumora Specialist from Toledo, OH
    Replied 8 months ago
    I’m much “prettier” than her. Although she is very pretty also. I guess that must mean that I am really “pretty” then lol Thanks
    Cornelius Charles Investor from Oxnard, California
    Replied 7 months ago
    Lol. Best reply i’ve read in a while. Well played Engelo.
    Engelo Rumora Specialist from Toledo, OH
    Replied 7 months ago
    haha, thanks Cornelius, I’m use to the attention due to my good looks lol Much success
    Josh Splawn from Oak View, California
    Replied 8 months ago
    I like the emphasis on ‘just get started ‘ because that is what I did when I bought my first property. I had no infrastructure, game plan, strategy, experience, but a strong desire to own a property. I remember feeling like something was telling me that I shouldn’t move forward, that this was too serious of a game to get into, that I had no business trying to own a rental property. But I took those first intimidating steps, broke through those boundaries (which were mostly in my head), moved forward and never looked back.
    Engelo Rumora Specialist from Toledo, OH
    Replied 8 months ago
    Hi Josh, Thanks for your comment. Congratulations on taking the leap of faith and your success. So many folks just talk. Talk is cheap and actions speak louder than words. I wish you continued success.
    Christi Hawkins from Columbus, Ohio
    Replied 7 months ago
    Great information and thank you for always being willing to share your knowledge with those of us who are just starting out!
    Engelo Rumora Specialist from Toledo, OH
    Replied 7 months ago
    Hi Christi, Thanks for your kind words. I always do my best. Have a great day and much success