What systems to develop for "Newbie"

5 Replies

I have been reading the "E-myth" and it has gotten me to think about the how/why for developing systems. I get that everybody's systems will be different based on what they do, but was looking at which processes I should develop systems for as a "newbie". Currently, the systems would be for myself and my wife to use so we can stay focused and to try not to shoe horn a deal just because we like the house. What systems have been helpful in developing for your guys/gals businesses?

I am very much a problem solver, and a "systems" guy.  Everything I problem I solve, I base the solution on a system, and every system is designed by using "reverse engineering".

First, base your system on "never spending your seed money"...only spend your profitsUse your seed money to infinity though.  To do this, your must memorize, and commit yourself to this number sequence...1073741824.  That number sequence is your secret to success.

Second, you must learn the three most important knowledge bases to REI:

1 - How Money Works
2 - Market (not property) Analysis
3 - What is, and how to build a REI Plan...and "I want to flip 3 houses, and buy one rental per year" isn't a plan.

Third, understand (and it already sounds like you do..."and to try not to shoe horn a deal just because we like the house") that sometimes the best deals are the one's you don't makeProperties are not important...deals are.

@Joe Villeneuve , Thanks for your input! I don't understand your number sequence but when I get home tonight I will be puzzling it out. I love having systems in place to follow so that I know exactly what needs to be done and how to do it so that a certain result is achieved.

Originally posted by @Victor Cooke :

@Joe Villeneuve, Thanks for your input! I don't understand your number sequence but when I get home tonight I will be puzzling it out. I love having systems in place to follow so that I know exactly what needs to be done and how to do it so that a certain result is achieved.

 That number sequence would make Einstein proud.

@Joe Villeneuve , Ok I came up with two different takes on your number;

1) Its how many bytes in a gigabyte

2) It is also 2 raised to the 30th power

In the meaning of #1 I relate it to the question "How do you eat an elephant? One bite at a time" So to get somewhere in the REI world it takes one step at a time.

In #2 and doing a bit of research on some of your posts it relates to the power of

exponential increases. By getting one investment I would be able to pull my starting money out of by either fix and flip, fix and refi, etc. then reinvest into another investment with my original plus profit from the first investment. Eventual exponentially being able to invest in bigger or multiple investments at the same time. Also this would illustrate the ability of doing the same small things over and over will have a big result 2*2*2*2...

Am I close on what your are trying to get at?

Originally posted by @Victor Cooke :

@Joe Villeneuve, Ok I came up with two different takes on your number;

1) Its how many bytes in a gigabyte

2) It is also 2 raised to the 30th power

In the meaning of #1 I relate it to the question "How do you eat an elephant? One bite at a time" So to get somewhere in the REI world it takes one step at a time.

In #2 and doing a bit of research on some of your posts it relates to the power of

exponential increases. By getting one investment I would be able to pull my starting money out of by either fix and flip, fix and refi, etc. then reinvest into another investment with my original plus profit from the first investment. Eventual exponentially being able to invest in bigger or multiple investments at the same time. Also this would illustrate the ability of doing the same small things over and over will have a big result 2*2*2*2...

Am I close on what your are trying to get at?

 LOL.  Victor...you may move to the head of the class.  #2 is correct.  If we were playing Jeopardy, the answer would be:  "What is the power of compounding, in a mathematical equation"?

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