Are you thinking about venturing into the world of real estate investment? There are plenty of things you should know before making the plunge and signing on the dotted line. If you are just starting out you may be wondering where to even begin, but the good news is, every successful real estate investor wondered the same thing. Here are six best-practices all real estate investors should keep top-of-mind.
Hire a Bookkeeper
The first thing you should do is hire a bookkeeper because keeping up with documents and paperwork is a lot less stressful if you do it from the start. The documents will come in handy when tax season rolls around and you can write off your bookkeeper as an expense for your business on your taxes.
Learn How to Find Deals
One of the hardest parts about investing in real estate is finding the deals. This is a primary function of the business because it’s really what all of real estate investing comes down to. Without a deal, you can’t invest. If you have not, you need to set up your real estate team and systems to be part of finding the deals. An automated lead machine can help you generate leads at all times of the day so you are never losing out on deal opportunities.
Consistency will always beat out talent, resources or experience. Think of real estate investing as a marathon, not a race. You need to accomplish little goals each day to make it to the finish line of this long process. Be sure to track and measure all of your lead-generating efforts. All you need to do to be successful in this is put in the time and effort needed to accomplish these daily goals.
You will be swamped if you don’t document and systemize all of the operations of your business and will thus limit your income and growth as well if you are disorganized. As a self-employed individual, the power and control are solely in your hands. First, you need to document and systemize everything, then you need to delegate tasks to others while maintaining clarity and control over the business. Make sure you stay as involved as possible with the business while utilizing documentation and organizing systems.
Buy More & Sell Less
Intend to hold every property possible. If you need more cash flow, you may need to flip occasionally, but this is fine because cash pays the bills and keeps the business going. The more properties you hold, the more money you will make in the long run and the quicker you will make the money. Any seasoned real estate investor will tell you to buy more and sell less.
Underpromise to Partners
When it comes to investing, people know that there are a lot of variables that are in play and that risk comes with the territory, but when things don’t work out as planned, it’s easy to point the finger. Try to avoid by underpromising to your partners, but overdelivering. Do not borrow more money than you can use.
With these six best practices, you will be ready to invest in real estate.