In this article, I’m going to simplify the challenge and make it very easy for you to scale your real estate business. These 4 easy steps will be applicable to every real estate investor, no matter what niche you’re in. Whether wholesaling, lease options, landlording, rehabbing, etc. the principals of scaling your business remain the same.
Scaling your real estate business is a milestone for everyone. It’s that epiphany moment when you have complete validation and you’re realizing that you can handle this in a larger scale.
If you’re at a point in your business where you’re ready to “take it to the next level” (that’s what most people call it) , then Congratulations! You’ve obviously accomplished something that is worth multiplying, and something that only a small percentage can achieve.
There’s a shift in the thought process when it’s time to crank things up. Let’s review the top 4 changes that are absolutely required for you to take your business to the next level!
You can’t scale anything without adding additional people to the mix. With more volume comes more work. If it’s worth doing, it;s worth hiring someone to do. The challenge with this step is finding the RIGHT people to add to your team. You have to be very selective, very picky, and have a tight filtering system.
From experience, I can tell you that finding good people is the toughest job of all. Frustrating, as well. As the business owner, you have to be FAIR BUT FIRM, and have zero tolerance for slackers.
Similar to being a landlord, managing a team has to be disciplined and organized. There must be a system in place that everyone follows. You’ve most likely already created the system, now just choose the right person to perform the tasks.
We all run our businesses differently. When you develope a system that works for you, then that’s what will be duplicated. your STRATGEY, however is a slightly different.
A “strategy” is a plan of action or policy designed to achieve a major or overall objective.
What is your overall objective in your business? Is it close X number of deals? Is it to reach a desired amount of income Is it to rehab 5 houses in a particular neighborhood? is it to buy 20 rental properties this year? Whatever your objective is, how will you accomplish that? What is your marketing plan? What is your formulas for buying properties? What is your minimum profit goals?
By establishing a strategy for your company, your entire team can work together to achieve these goals. Everyone will have a role that they play to get to the desired mission.
Noone likes to hear this, but it takes money to run, manage and (especially) scale a real estate business. Don’t expect to scale any business without having a grip on your finances.
There’s expenses involved every month for marketing and acquisitions, software, phones, internet, CRM, bookkeeping, etc.
When you first started out you most likely saw some bogus advertisement that told you that you could buy houses without any of your own money. While it’s true that you don’t need any of your own money to BUY the house, you DO need money to generate the leads so you can buy the houses!
Same thing applies to managing a company and doing volume deals. It requires cash. it requires discipline. It requires an understanding of what’s involved to accomplish the goals. I can’t give you a dollar amount that you’ll need to scale your business, because that will depend on your objectives and your strategy. But I can definitely tell you that you need money available to execute your scaling plan and you’ll need to make sure that you keep money in the bank to keep the wheels rolling on your machine.
If you’re talking about spending the $1000 you’ve been saving on a marketing campaign, in hopes of closing a deal so that you can then scale your real estate business, you’re not ready for this! By the way, you might be laughing at what I just said, but I hear it ALL THE TIME. People will take their life savings and have faith that a $500 campaign will bring a ROI of $5000. Then they’ll be “set for life”. LOL NOT GONNA HAPPEN LIKE THAT. Sometimes I spend $5,000 in a month and don’t close a single deal.
Finally, you need an execution plan. Scaling a real estate business seems overwhelming when you sit down and try to map it out in your head. There’s thousands of moving parts that all have to stay in motion for this to work. It’s impossible for you to push a button and walk away.
You’re going to have to create a plan that implements your new strategy one step at a time. Do it in the order of importance to your business. If you feel that marketing campaigns are the most important part of your strategy, then start there. If you’re a rehabber, maybe you’ll want to hire a bookkeeper to manage all of the vendors and receipts so that you can focus on building a better system.
This final step is where most people fail. Don’t let that be you. Don’t sit around for the next week (or month) writing a plan and talking to people about joining your team, if you’re not ever going to execute your new plan. What a waste.
Don’t worry about failures. We all suffer through them. They won’t kill you. They’ll only make you stronger. It will take some time to transition into a bigger and better way of doing business. The rewards will be worth it!
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The Property M.O.B. Membership site has a full training library on this topic, including a full 1 hour Borgata meeting that discusses scaling your business in great detail! Become a Business Owner today, instead of an employee to yourself.
So are you thinking about scaling your business? Are you in the process of scaling right now? Have you reached that next level? I’d love to hear about it! My goal is to help other real estate investors become Bad Ass…and i do that using my own experience and sharing ideas from others. What do YOU think is the most important factor when it comes to growing your real estate business? Leave a comment below and share your thoughts.
See you soon!