The thought of automating your real estate business sounds awesome, doesn’t it? Well, IT IS! For the first 10 years that I was in business, I did everything myself. I mean EVERYTHING. Once you start dissecting the business, it becomes apparent just how much thought, energy and work goes into a closed transactions. It doesn’t make that much of an impact when you first start out, because you’re eager to learn, anxious to get to that first closing, so you do “add on” a little bit at a time, until you’ve come full swing and closed a deal.
There are various reasons for automating your real estate business. A common reason is that you have another full time job and you want to tell your boss to bite the bullet! (Always my favorite). Perhaps you’ve learned the fundamentals down pat and you want to create a real business. Maybe, like in my case, You just got bored with the repetitive, time sucking tasks that were all required to make the business run.
I remember in 2006, I started “complaining” about not wanting to go look at houses. I had been in the business for 8 years, and I felt like I had seen everything at that point. I also realized that SOMEONE has to go look at these houses. Sellers will lie and tell you that the house needs paint and carpet, when really its a total disaster.
Creating a real estate business that runs on auto pilot is a sophisticated process. It needs to be well thought out, and executed so that everyone on your team knows what their role is, and what the goals of your company are.
If you’re considering (or are in the process of) automating your real estate business, keep reading! I’m going to reveal
The 3 Tragic Mistakes Real Estate Investors Make When Automating Their Business
I have to bring this up first because A LOT and I mean a lot) of people that are just getting into the real estate business have a grand illusion that they can run their businesses without any money. This is so far from the truth that it’s not even funny.
Even if you’re doing everything YOURSELF, it costs money to be in business. Sure, there are methods that you can use to generate seller leads for free, but that isn’t sustainable and it certainly isn’t a business model. Automating your real estate business means utilizing software, technology, and OTHER PEOPLE to get things done for you. This means that it’s going to cost you money.
In addition to a marketing budget, you’ll also need an operating account that can afford to pay your team to take you to ap lace of automation. I’ve squeezed these expenses down to a MINIMUM, and continue to keep my expenses low. You can do the same thing. It’s not EXPENSIVE, per se, but it doesn’t have fees attached to it.
However, with a team and an automated business, you’re able to SCALE your business and do more that ever before. Your time can now be spent working ON your business instead of IN your business. Read this article about scaling your business.
There’s a lot to learn when its comes to mastering a niche in the real estate niche. They say that it takes 5000 hours of working on something before you become an expert. That means if you work on your real estate business for 40 hours per week, it would take 2.5 years before you should even think about calling yourself an expert.
Now let’s add in a new element, which is automating the real estate business. It’s an entirely new project to embrace. I’m not saying that you can’t come into the real estate space and automate your business right out of the gate. What I AM saying is that you should have some knowledge about closing deals, and have several (5-10) closed transactions under your belt before you think about automating.
It’s hard to automate something that either you don’t understand or that you’ve never done yourself. So if you’re new to the business AND want to get the automation underway as soon as possible, just be prepared for some speed bumps. You can get over them, but be ready for the challenge.
3: Expectations Set Too High
Being in the coaching/mentor space that I’m in, I help a lot of real estate investors get their business off the ground, AND I help them automate their business. I have initial consultations with all of them, so that we can set some realistic expectations about their business.
This may be the most frustrating part for me, is that people have their expectations set too high. What I mean by that, is that they think that they can have everything up and running like a well oiled machine in just a couple of weeks. This isn’t the case!
So what can you expect when it comes to automating your real estate business? You can certainly have all of the components in place, and the framework completed within 30 days. Then, it will take months of implementation, execution, and practice before you can go to sleep at night KNOWING that you business is going to thrive without you.
So there you have it. The Top 3 Tragic Mistakes that are made by real estate investors when it comes to automating their businesses. Automation of your real estate business is an amazing accomplishment, as mine as been automated for several years now. The time that I do contribute to managing the business is minimal (1 hour per day at the most), and I’m able to make more money now that I ever have before by leveraging my knowledge and time.
I’d love to help you automate your real estate business and get to a place of freedom. Post your comments if you have any questions.