When you’re first getting started in real estate investing, your business likely consists of one of these combinations:
- You and your spouse
- You and a family member
- You and a business partner
You’re wearing multiple hats and until you get a few deals done, that’s going to be your norm.
In the beginning, you don’t have systems or processes in place and it takes time to get a rhythm that works for your business.
In addition, your funds are most likely being allocated to marketing and getting deals, with building a team not being a feasible option.
To put it simply, automation and delegation isn’t an option when you’re just getting started but it’s something to work towards.
It’s a LOT of work when you’re first starting out but it won’t always weigh so heavily on your shoulders. As you grow, you’ll be able to delegate tasks to other team members so that you can focus on the most critical aspects of the business.
So what happens after you’ve done a few deals, have some money in the bank, and are ready to start taking a few things off your plate? It sounds great, but the problem that a lot of investors run into is that they think that they can do it best and they worry someone else won’t be able to perform as well.
Bookkeeping, marketing, office work might be things they HATE doing but, in their opinion, they do it best for their company.
What they have to realize is they’re probably right, but they can’t continue to do everything.
If they do try to do everything, the business will own them and freedom won’t be an option.
Setting up systems and processes will be a tremendous help in your business. There are some phenomenal systems out there that can help automate your business. From CRMs to task management to campaigns for leads, there’s automation out there for you.
Take note when other investors recommend a system or software that they use in their business. Don’t be afraid to ask questions in real estate investing Facebook groups and in person when you’re talking to other investors.
While you’re still filling the main roles in your business, document the process from start to finish for each position so that when you’re ready to hire someone, you have training built for them and it will be a smoother transition.
Some investors even make short how-to videos and provide this to their new hires as part of their training. This way, they know the exact way to do it and can follow suit with less questions.
The more documentation and training you have for them, the better it will be.
It’s important to consider what your weaknesses are.
These are probably the areas of your business that you don’t mind delegating and if given to someone who excels in that niche, your business will be able to scale more smoothly.
Even if they only perform at 70% of your level, you’re allowing your business to grow and instead of the business owning you, you’re owning the business.
Let go of control just a bit and hire those who understand the direction your business is going and have goals that are aligned with the business.
In a small business like real estate investing, you need a solid team that will work together to thrive. Automate as much of your business as possible while still building rapport with your sellers.
If done correctly, you’ll be able to get away from the business owning you, and you owning the business.