Benefits of Hiring Employees for Your Investing Business
When you started your real estate investing business, it might’ve just been a way to make extra money on the side. Now, though, you’re flipping more houses than ever, and your business is really starting to grow. So, should you hire employees, or should you continue to be the backbone of the business and just work with contractors and freelancers? Believe it or not, there are a few really great benefits that come with hiring employees for your real estate investing business.
Get More Organized
One of the first employees I recommend hiring is a personal assistant. Having an assistant is a great way to find out just how disorganized you were before and to see how much more efficient you can be. With someone to take care of your calendar and keep the office organized, you’ll have a lot more time to go out and find great house flipping deals. With more time, you’ll find that you can flip more houses at once, and your monthly income should grow significantly.
Improve Your Lead Generation
If you’re not quite ready to hire a new partner for your real estate investing business, you might want to start by hiring some interns or entry-level investing employees. For example, you could hire people to work on your lead generation for you, either through bird dogging or online marketing. Then you can pay them on a commission basis so that they’re motivated to get more done and you can see exactly how much they’re contributing to your business.
Full-Time Employees Are More Cost Efficient
You might be wondering why you wouldn’t just want to hire freelancers to do jobs like bird dogging and other lead generation work, but believe it or not, contractors and freelancers generally charge more than full-time employees. Why? Lack of job security. People who are out on their own getting one-time gigs and contracts will charge more than people who know they’ll have a job to come back to every week.
Train Your Next Partners
Plus, young employees can start out in entry-level positions, and then you can train them and promote them to positions with more responsibility. If you treat them right and show them the ropes, you’re likely to be training your next investing partners, people who can bring even more to your real estate investing business and your brand so that you can grow your business more.
Enjoy More Free Time and Less Stress
One of the most important things that anyone can learn as they start a business is to delegate. Yes, it costs more on paper to have a general contractor or project manager oversee our rehab projects, but it would take much longer and be much less efficient if Tarek and I had to do it ourselves. Instead, we have more time to do what we do best—making deals on great flip houses and designing beautiful renovations.
When you hire employees, you can delegate even more tasks for your business to help you focus on growth and better investment opportunities. You can stop wearing a bunch of different hats and just work on the parts of the business that will make the most money and facilitate the most growth. Plus, you’ll have more free time to spend with your family.
Basically, hiring employees as your real estate investing business grows is a great way to make your whole operation run more smoothly and more efficiently. You can get more done with less stress, and you may be able to do it all while spending less than you would to hire freelancers or contractors.
For more information about real estate investing, visit Real Estate Elevated's BiggerPockets blog.