In real estate investing, you are your own boss. You make your schedule, you decide how hard you want to work, and you are the ultimate decision maker for your business.
This can be both empowering and debilitating, if you aren’t careful.
You see, with being your own boss, you have no one to technically hold you accountable.
No one will bring you into their office if you aren’t completing tasks on time.
No one will push you to do better.
You have to do that yourself. Which for many, is not the norm.
This is why accountability is critical in real estate investing.
I’m guessing that we all know someone who wants to get started in real estate investing but have an excuse for why they haven’t taken action yet.
They aren’t holding themselves accountable for taking action and no one is watching over them to make sure they take action.
Without accountability, it’s easy to procrastinate, to make excuses, and to never take action.
As a real estate investor, you have two options.
First, you are disciplined and hold yourself accountable.
Or, you find a seasoned real estate investor and have them mentor you, and allow them to help hold you accountable.
There’s a lot to do to get started as a real estate investor and it can be overwhelming. From setting up your business entity to setting up your list of who you’ll be mailing to, it’s easy to put things off because they’re new to you.
With a mentor, they’ve been through it before and can help guide you in those first few months that create the foundation of your business.
Here are a few things you should be documenting and checking on weekly, at least as you get started:
- Contacts Made
- Advertising Spent
- Number of mailers sent out
- Number of leads overall
- Number of calls taken (live, by voicemail, by call center, etc)
- Number of appointments made
- Number of offers made
- Houses contracted
The list could go on and on but essentially, you need to know how your business is performing and if it isn’t performing as well as you’d like, what area could use improvement. These stats are called your KPI (Key Performance Indicators).
Are you not getting any calls from mailers sent out?
If so, you should make sure that they were delivered to the right address, and take a look at the message on the mailer in the eyes of a motivated seller.
Would you contact the investor who sent that mailer if you were needing to sell?
Sometimes, the message needs to be tweaked. This is again where a mentor can assist because they’ve seen what marketing has worked in the past.
The percentage of responses you’ll receive vs. how much marketing was sent out can be discouraging. It can get costly quickly if you aren’t careful and again, easy to fall off the bandwagon.
Remember these few things when you’re getting started so that you keep on going and hold yourself accountable until you’re starting to get deals and it becomes more routine:
- You will be told “no” more often than “yes
- Marketing costs money and you might not get a deal in your first few months so you need to budget for 6 months of marketing before your first deal
- Never compare yourself to other investors (ever!)
- Set a percentage that you’ll buy at and don’t go over it just because you want to get a deal
- You never know when you’ll get a home run deal so keep on going
Treat your business like a business!
Track your progress and always strive to do better the next day.
Real estate investing can be a very, very profitable business if you hold yourself accountable and take action!