Often the harsh lessons learned are the money you may save in doing renovation work yourself. Self-managing a property is very limiting to your investing results. Can you save some money? Maybe. Is it worth it? Not! Your time is your most valuable asset. Your time is best suited to finding more and better deals, finding money partners, or even just enjoying your life more while growing your business. Too often, new investors get burned out by taking on too many roles in the attempt to save a few bucks. Anyone reading this and, on their way, to being a professional property, the investor knows that tasks such as renovations, cutting grass, and bookkeeping, well, those are all expenses to your business. It’s time to run it like a business and fully utilize what the IRS allows you. How can you grow your business if you are too busy doing all the menial tasks yourself?
Simply put, you cannot. Often investors who try and do all this themselves burn out after 2 – 3 deals as they cannot keep up. Family time suffers, energy and happiness all become challenges. We get into properties to make our lifestyles better! Delegation is key to creating a system for your business.
As you read this, you may be starting to see the value of a system that allows you to find and close on good deals with little or none of your own money. A system that helps you find deals in non-traditional ways that could include:
- Calling for rents asking investors if they have any properties for sale.
- Conduct “effective” meetings with mortgage brokers, many mortgage brokers!
- Give them a particular criterion of what you are looking for.
- Conduct “effective” meetings with many realtors in multiple markets.
- Give them precise criteria of what you are looking for.
- It’s a common mistake to say, “call me when you have a good deal,” which is why you receive harmful listings. A wise investor would provide criteria and numbers that meet their goals and request those properties.
- Conduct “effective” meetings with Community Banks.
- It’s time to think bigger and look for multiple properties from one source. Banks would love to unload their non-performing assets to a qualified investor. The challenge is, how do you convince the banker you are such a qualified investor? If the meeting goes well, then you could get some deals. If the meeting goes badly, that banker will likely never deal with you. Luckily a mentor is skilled in communicating with community bankers to build trust and get deals!
- Work with wholesalers.
- So many ways to do this: have you ever considered calling churches? Sometimes people “gift” properties to churches. Also, bankruptcy attorneys, for sale by owners, etc., etc., etc.…
- If you are looking online at MLS and seeing there are no deals, you are likely correct. Often, good deals do not even get listed online as they sell quickly.
Finding and closing good deals is part of the equation. What about financing and managing the deals? A system will help you finance the property with little or ideally none of your own money, thus giving you a very strong or even infinite ROI (you cannot get any better than infinite ROI!). Once you have a track record with deals and strong cash flow, you suddenly become very attractive to money partners and grow your business exponentially.