It is said that as human beings the easiest person to fool is ourselves. All too often we lie, cheat, manipulate, bully, and de-motivate ourselves on a regular basis. If this describes you or someone you know please send this article their way.
The topic of this post is about the how and why to help bring clarity to your real estate investing business. Below are some of the main bullets I help identify and go through with every new investor I personally help. Take the time to read each one and reflect inward to ask these same questions of yourself.
How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties
This is the dream right? Going from zero to 10+ rental properties, providing stable cash flow and long-term wealth for you and your family, and building a scalable business model to boot! Learn how this investor did just that, in this exclusive story featured on BiggerPockets!
What is my business mission statement?
Does your business simply want profits? Does your business wish to help society? Will you work with only the wealthiest people in your market or do you target blue collar workers? In what geographic locations will you do business? A mission statement is an understanding of what your company does, who it helps, and what people can expect from your company. This is a very simple question yet many investor’s I talk to do not have clarity in their own company’s mission statement.
What are my talents and weaknesses?
Perhaps the biggest question every new and seasoned investor should ask themselves is about their own strengths, talents, joys, fears and weaknesses. Are you organized? Are you a self starter? Are you good at being your own boss? Really? Do you need someone to hold you accountable? Do you like talking to people? Do you have credit? Do you have money? Will banks lend to you? Really? How much time per day do you have to invest? Are you lazy? Are you determined to break down any barrier to make your dreams a reality? Really? Do you want to buy and hold real estate or flip it? Are you sure? Are you in an area of the country that has opportunity for the types of real estate you wish to pursue? How do you know?
The list above is only a short outline to help identify how prepared you are for moving forward. The more clarity you have over your shortcomings the more you can do to learn and grow in these areas. In the areas that you have ample strength and confidence be happy and proud of yourself. Some of these attributes, such as “will a bank lend you money” can only be confirmed by calling local brokers or money lenders. Take the initiative to push yourself daily or have someone that will push you daily to get over your own hurdles and move forward.
What are my goals?
Your goals should be written down, have a due date next to them, and be located in plain view on a daily basis. Before you start ironing out your 5 year plan make sure you have a healthy investing foundation and clarity for moving forward. Make absolute certain you have a grasp on your weaknesses and how you are improving them as needed in our real estate investing field.
Do I understand my purchasing and selling process well enough to explain it to a 10 year old?
Once I began understanding what my average buying/selling transaction looked like I was able to clearly paint a picture with words for my seller and buyer with what to expect moving forward. Sellers and buyers love clarity – we all do. Aim to be able to clearly explain to your next buyers and sellers what their next few steps will be at the end of each of your conversations. No one likes to twiddle their thumbs or be confused. Help bring clarity to all those you help and interact with on a daily basis.
In the questions above there are no wrong answers or realizations you may have. Please be honest with yourself and look deep into your heart to determine where you lack talents and where you can look for help and experience to grow. No matter what your answers above are, every skill and talent needed to be a successful real estate investor can be learned, partnered with, or outsourced. The secret is to first have true clarity and then to make a clear action plan moving forward.
If you agree or disagree please comment so below so that we may all learn and grow together.
Love what you do daily,