If you are like most real estate investors, your goals include building an important business; It is not a small secondary business. To create a successful long-term business, your platform must be salable. If your business is not salable, it will reach a plateau, something that many business owners of all kinds will achieve. One of the simplest solutions required to create a salable investment business is to create systems.
Before building other systems, you must create a system to identify and select the properties to invest in. Most successful commercial real estate investors will develop criteria that a property must meet to be considered, then another more specific set of criteria that a property must meet or exceed to be a viable investment option. The development of rigorous criteria like this will effectively eliminate the excitement of the general investment equation, a common reason for people who make bad investment decisions.
Continuous Property Management
Once you have begun to build a portfolio of real estate investments, you must have systems to effectively manage the properties on an ongoing basis. Develop relationships with general contractors, electricians, plumbers, landscapers and others, so that, in case work is required on your property, all that will be required of you is a simple phone call. Or, take advantage of the services of a property management company to handle all problems related to your property on your behalf, saving you time and money in the short and long term.
Use a business management system like Quick Books to keep all your income, expenses and taxes organized. You will need to have a variety of financial documents when you file your annual tax return and depending on how you have legally structured your real estate investment business, there may be additional tax returns and documents required by your state. home.
Systems are the key to saving time today and creating a sustainable and salable real estate investment business.
David Lindahl, also known as the “King of the Apartments,” has invested successfully in single-family homes and apartments for 14 years and currently owns more than 7,000 units in the United States. David regularly shares his secrets and his experience on the same stage as Tony Robbins, Robert Sukiyaki and Donald Trump! For two FREE copies of your highly recognized Real Estate Insights newsletter