Long term Success in Real Estate
Clyde, TX · Member since 2018 · 109 posts · 94 votes
If there was one golden nugget; one tip, you could give that would aid in the long term success of a new real estate investor, what would it be?
If there was one golden nugget; one tip, you could give that would aid in the long term success of a new real estate investor, what would it be?
I consider real estate like juggling. When you own a single personal residence it’s like you are throwing one ball between your two hands. Each property you buy, unit you own, or deal you are doing is like adding another ball.
It can become a nightmare trying to juggle 10 balls at once, but imagine if you could grow more hands, juggling would be a lot easier. Your team and your systems are the extra hands. Realtors, property managers, wholesalers, contractors, partners, etc.
I know this is basic advice but treat it like a business from the beginning. So many people treat it like a hobby, where they look for or do deals whenever they feel up to it and that won't work long term or lead to success. Also, keep in mind what your end goals are. Meaning, if you want to retire start setting things up in the beginning to make the business run by its self eventually, instead of just owning a job and having to rework everything again later to actually achieve your goals.
Sarah, we are in the beginning stages and want to create a business that will run by itself, eventually...right now I'm property managing and finding deals, and husband has W2 job until we have enough properties.
Can you give some suggestions on how to set it up correctly from the get go? Any details are appreciated.
@Tandi H. I really work from a perspective of systematizing everything and the beginning is one of the best times to at least wrap your mind around how you want things to look in the future and work backward from there. I almost think of real estate as a web because you have the core property but there are so many aspects to finding it, closing on it and maintaining it to consider. I just broke down each faction of the process and started considering how to make it automatic through a lot of self-education. For example, you said you are property managing and finding deals. Unless you love those aspects of the business I would look for a way to at least have the option to take those off of your plate. Property management is probably one of the easiest things to start with because if you don't want to manage the properties eventually, make sure property management costs are included in your buying numbers now and are in neighborhoods that property management will work in. You don't want to get to the end and have enough properties to get your husband out of work to only realize you can't turn over the property management side. You might continue to do all of the duties in the beginning but if you change your mindset to start looking for ways to either get others to do the jobs or find automatic ways to have it completed I think that is key. Sometimes it's just about making things easier too like finding a good Title company and doing all of your deals through them because then you don't always have to be sending the same documents every time. Also, it's not a new tool but I've recently discovered the power of customizable programs like Podio in my own goals, as one example, which could help you in the processing and tracking of finding deals too. I hope this helps!
@Tandi H. I really work from a perspective of systematizing everything and the beginning is one of the best times to at least wrap your mind around how you want things to look in the future and work backward from there. I almost think of real estate as a web because you have the core property but there are so many aspects to finding it, closing on it and maintaining it to consider. I just broke down each faction of the process and started considering how to make it automatic through a lot of self-education. For example, you said you are property managing and finding deals. Unless you love those aspects of the business I would look for a way to at least have the option to take those off of your plate. Property management is probably one of the easiest things to start with because if you don't want to manage the properties eventually, make sure property management costs are included in your buying numbers now and are in neighborhoods that property management will work in. You don't want to get to the end and have enough properties to get your husband out of work to only realize you can't turn over the property management side. You might continue to do all of the duties in the beginning but if you change your mindset to start looking for ways to either get others to do the jobs or find automatic ways to have it completed I think that is key. Sometimes it's just about making things easier too like finding a good Title company and doing all of your deals through them because then you don't always have to be sending the same documents every time. Also, it's not a new tool but I've recently discovered the power of customizable programs like Podio in my own goals, as one example, which could help you in the processing and tracking of finding deals too. I hope this helps!
Thanks Sarah! Those are a lot of great ideas that I will start incorporating!