Investor · Bay Area, CA · Member since 2019 · 44 posts · 17 votes
How do you make your real estate investing venture into a business?
I understand systems are key, but how do you implement these systems? How do you ensure efficiency and success?
I am curious about what other investors think so I can grow my own wholesaling business in a way that allows for the highest probability of success. Of course, there are several other factors like the persistence and passion of the business owner--qualities I believe that I have--but I am most interested in the systems others are using.
As I work on building a business, I constantly look at three things. Where am I spending most of my time? What am I doing that I really don't like doing? What isn't getting done that needs to get done? This is where I look to outsource (or hire) and automate. I do this on a regular basis. As for what tools I use, it depends on what I'm trying to automate. Sometimes I develop them myself (not the best use of my time, of course), or I do some research to see what the best solution is.
why ask these questions? There are so many videos online explaining the "best systems". It sounds like you are in search of a security blanket and knowing what to do before you actually do it. If you take that approach you will never start doing deals because you are too busy researching the best methods. Pick one strategy and go hard at it , whether it be direct mail, cold calling, or pay per click. Just take action in whatever direction you feel is going to be best to build your business. Build on the success and move on from the failures. There is no blueprint to ensure the efficiency or success.
Wholesaling isn't a real estate investing venture, it's a sales business. The key to growth in that sector is sales people. The large institutional wholesalers who have scaled have hired relentlessly. There's massive turnover, and most sales people never make any money. So if growing a wholesale business is what you're trying to do I'd say the ability to constantly hire new sales people is a huge factor. You'll also need to be able to sell them on how much money they can make, even though you know it's probably not going to happen, and somehow keep a clear conscience.
Have you started? The first step in growing your business is taking the first step and getting up to speed. The above comments are good, but get some good experience under your belt, and then use that momentum to grow your business.
@Barry Pekin I have started. I am currently flagging distressed properties with LandGlide in a zip code that I researched on ListSource. I am also building my cash buyers list at the moment. I will begin cold calling two weeks from now when my buyer’s list is more substantial.
@Nick C. I’m not after any scheme that involves lying to people. If that means I won’t scale to “corporate level” wholesaling so be it. Reputation comes first and I want to be completely transparent. I want an honest business with at least two to three closed deals a month worth of lead flow long-term. I would then be able to pick the best deals and use them for rentals and/ or flips of my own.
@Nick C. I’m not after any scheme that involves lying to people. If that means I won’t scale to “corporate level” wholesaling so be it. Reputation comes first and I want to be completely transparent. I want an honest business with at least two to three closed deals a month worth of lead flow long-term. I would then be able to pick the best deals and use them for rentals and/ or flips of my own.
@Joshua Dayrit I have picked a strategy that I am currently implementing while building my buyer’s list. I do want to start with the end in mind. This post is more about having the structures in place for when I achieve certain levels of success.
As I work on building a business, I constantly look at three things. Where am I spending most of my time? What am I doing that I really don't like doing? What isn't getting done that needs to get done? This is where I look to outsource (or hire) and automate. I do this on a regular basis. As for what tools I use, it depends on what I'm trying to automate. Sometimes I develop them myself (not the best use of my time, of course), or I do some research to see what the best solution is.
@Barry Pekin Thanks! I am reading "The One Thing" right now, and it definitely touches on your message. Ideally, you only do the 20% you are best at (Pareto Principle).