Three Keys to Long Term Success in Real EstateSep 19, 2017
Does cash flow keep you up at night?
Or do you find there just isn’t enough time in the day to accomplish all that there is to do?
You’re not alone!
Many business owners find that these two areas are the cause of most of their stress.
As a real estate investor, I’ve found you simply cannot ignore the basic business principles that lead to success in this industry. Like me, you will surely experience ups and downs as you make your way forward. But, maintaining focus as a business owner will allow you to overcome most challenges.
Whether your dream is to own a multimillion dollar real estate portfolio, or just to wisely invest your retirement funds, let me share with you three keys to long-term success and growth.
These are the 3 Keys that allowed me to grow from working as a barmaid, to owning a Multi Million Dollar Real Estate Empire.
#1 Treat Your Investing Like The Business It Is
First, recognize that your investing is a business. Even if you have a full time career and investing is secondary to you, it's still a business and needs to be treated as such.
Take a moment to look deeper into what's really happening here. Even with a single buy-and-hold investment property, you can clearly see that it’s a business. Consider the following facts:
- You have purchased the property, which is your asset
- You are selling the use of the property space for a fee called rental income/revenue
- You have a client or clients who are your tenants
- You have necessary expenses for the property, including such things as maintenance, advertising, renovations, appliance repairs, property management, etc.
- You have very real and necessary business operating expenses such as your phones, vehicle, office supplies, a bookkeeper etc.
- The CRA or IRS wants to know the details of this asset and business of which you are required to submit annual year end information for tax purposes
- Your intention of investing in the property is to create financial gain through positive cash flow, and equity appreciation. This is called a profit.
When you expand on this idea by adding more revenue properties, or even other real estate investment strategies, it quickly becomes clear that this is definitely a business.
You're dealing with large amounts of money, and just as important, you have the responsibility of providing quality homes to your tenants. You aren't just dealing with dollars; you're dealing with peoples lives.
Needless to say, you’re approach to being an investor matters a lot. If you treat it like a hobby, it will likely pay you as a hobby. However if you run it like a business, you'll be far happier with your financial results.
#2 Implement Systems
The second key is to implement systems. Since your time is precious, systems are key to your success. Even if you're the only one working in your business right now, develop an operations manual of your procedures. Write down step-by-step systems for each task you do. This will not only allow you to train someone else one day, but it will save you time from re-inventing the wheel each time you approach a task.
Here is a sample list of things to include in your manual:
- How you manage your records and track your rental income and expenses
- What your procedures are for screening tenants and collecting rent
- How you handle maintenance and work order requests
- How you will maximize your tax deductions, how and to what extent you will depreciate your properties, and if you will defer your real estate taxes (where applicable)
#3 Find and Use Resources
The third key is to find and use resources. At this point you know what you want to accomplish. And you know what you can and cannot do on your own. Now all you need to do is fill in the gaps. It’s all about resources – where to find them and how to use them. Resources might be educational tools, places you go to be inspired and to learn more, or people you network with.
As many wealthy real estate entrepreneurs have said time and time again, having a mentor is one of the best ways to speed up your success in any field. As a beginning real estate investor, you can learn the ropes and start making money much faster by enlisting the help of experts. Build your support team early on as one of your key resources. Ideally, your team should consist of the following:
- Real Estate Agent
- General Handyman
- Major-renovation Contractor
- Title Company
- Banker or Lender
You’ll find that there are reliable and trustworthy people in all of the above areas who will be willing and ready to help you in your investment business.
When you get into the nitty-gritty of real estate investing, you’ll become aware of tons of tools and techniques that can help you find great deals and make a healthy profit. In fact, you can learn plenty of strategies for building wealth through real estate investments right here with The Melanie Bajrovic Wealth Academy.
The road to independence and financial freedom will not be easy, and it won't be short. It will take dedication and perseverance. As a business owner you'll find yourself on a roller coaster of batting a thousand one day, and striking out the next. You will play many roles and wear many hats. You will be forced out of your comfort zone more times than you’d probably like. But in no time you'll see that being a business owner gives you confidence, for you are in control of your own future and financial independence.
Yours truly, Melanie
If you want to learn more about creating serious wealth and securing your financial freedom through investing in real estate click here to see how I can help you on your path.
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