Rental Property Investor · Enterprise, AL · Member since 2019 · 137 posts · 85 votes
Hey BP!
I wanted to start a thread in which people who have scaled or are scaling their REI business can share how they are doing it. I would love to hear how people moved up from being a landlord to a full time real estate investor!
I wanted to start a thread in which people who have scaled or are scaling their REI business can share how they are doing it. I would love to hear how people moved up from being a landlord to a full time real estate investor!
Thanks,
Heath
Heath, I recommend reading the book E-Myth by Michael Gerber. It talks about the technician, manager, and entrepreneur and provides insight on why many businesses fail. As far as things you can do - always account for prop mgmt when analyzing deals. As enticing as it sounds to save some money each month by doing it yourself, you need to decide what the best use of your time is. Will taking care of property management issues prevent you from doing something that can net you a lot more money? The best way to scale your business is to focus on big picture things and delegate or eliminate or merge the rest of the tasks.
I wanted to start a thread in which people who have scaled or are scaling their REI business can share how they are doing it. I would love to hear how people moved up from being a landlord to a full time real estate investor!
Thanks,
Heath
Heath, I recommend reading the book E-Myth by Michael Gerber. It talks about the technician, manager, and entrepreneur and provides insight on why many businesses fail. As far as things you can do - always account for prop mgmt when analyzing deals. As enticing as it sounds to save some money each month by doing it yourself, you need to decide what the best use of your time is. Will taking care of property management issues prevent you from doing something that can net you a lot more money? The best way to scale your business is to focus on big picture things and delegate or eliminate or merge the rest of the tasks.
Rental Property Investor · Enterprise, AL · Member since 2019 · 137 posts · 85 votes
6y
@Derek Harris Completely agree! What do you do if there are no good PMs in the area? I think there is a lot of money to be made in starting a PM business, but that is beyond the scope of our plan presently.
Investor · Austin, TX · Member since 2018 · 192 posts · 104 votes
6y
@Heath Jones the key is to automate your business as much as possible. If you're in a location lacking good property management, I would recommend using a property management software that can help with screening tenants, managing maintenance requests, etc. BP has a few podcasts where investors have been pretty successful with it. Just Google search for property management software.
Rental Property Investor · Enterprise, AL · Member since 2019 · 137 posts · 85 votes
6y
@Derek Harris Agreed. I use Rentec Direct for the 22 units we have locally. Between my partner and I, we have close to 80 units across personally owned apartments and two multifamily syndications. The one out of state property is managed by a PM there. We are now looking to scale up our business to hit 500 units within the next year or two. We have talked about hiring virtual assistants to handle a lot of the smaller tasks we could offload so that we could focus on increasing the quality of our relationships with our brokers, finding/analyzing more deals, raising capital and our weekly podcast we started a few weeks ago. We have help with asset management so far, but are planning to take that on for all the new deals we partner on in the future. Would love to hear more stories of how people went from landlord to managing large real estate portfolios. Thank you so much for engaging, it is very much appreciated!!
What is your current focus and what’s a problem you are trying to solve right now?
When looking to scale, you need to identify what type of working that you're currently doing can be delegated to others and what type of work needs to be done and no one is currently undertaking. Come up with such list of tasks/activities. Decide how they can be combined together and start looking for either partners or team members to fill in those roles. To find them, you can post on BP, ask around your local REI groups, and/or ask the RE professionals you're working with for recommendations.
Let me know if you need any further help to take it to the next level.