For me, it wasn’t a decision to automate everything. I didn’t wake up one day and say “Today, I’m going to automate my real estate wholesaling business”. I just started outsourcing a task here and a task there to real estate virtual assistants and within a couple of years, my whole business was running without me.
So what does this mean for you? Why are you even reading this? Well, I can help you make the decision on whether today is the right time to consider using automated real estate systems, or if you need a bit more time before you dive into that realm.
Do NOT automate your business if you’re a newbie!
What do I mean by “newbie”? A newbie is anyone who hasn’t successfully closed at least 5 real estate transactions. This doesn’t mean that you’ve even come close to seeing everything that could happen in 5 deals, but it does mean that you’ve got a foundation of knowledge of how a transaction will run.
As long as you have an understanding of how your business should run, then automating everything will make ALOT more sense to you.
Do NOT Automate your business if you struggle with a marketing budget.
Everything in real estate begins with a lead/prospect. And to generate leads, it requires money. Sure you can generate free leads here and there by door knocking and scouring Craigslist. Not my idea of a business model, but I can’t convince people not to do that. I’d rather launch marketing campaign that generate hundreds of leads, and I’ll choose the ones to do business with.
Marketing campaigns and maintaining budgets seem to be the biggest challenge for real estate investors, and I can relate. When I first started out in 1998, I didn’t understand the concept of a marketing budget. When I closed my first deal, I spent the whole check (and not on marketing either). When I closed my second deal, I spent the whole check (and not on marketing). I’d always find myself scrambling to find a few hundred dollars to mail out some postcards. This disasters and self destructing behavior went on for at least 5 years before I realized how chaotic it was.
So I started scraping 20% off the top of every deal and allocating it to marketing and operating expenses. All of the sudden, the stress of trying to come up with marketing money was over. It takes discipline and self control to LEAVE YOUR MARKETING BUDGET ALONE and only spend it on things that will generate leads!!
The size of your marketing budget doesn’t really matter, as long as you realize that you have to have a budget and you have to stick to that budget. If it’s $500 a month, then be sure that $500 a month is in your account and its being spent on marketing. If it’s $5,000 a month, same thing applies.
If you’re not able to manage something as simple as a marketing budget, then you’re NOT ready to use automated real estate systems.
All of the tools and software that are required to automate your business have a price tag.And if you’re not able to pay for these tools every month, then your machine will break down and you won’t reach your destination.
Think of automating your real estate business like buying a dependable car. You know that it’s going to cost money up front to buy the car. You also know that if you want the car to run well and get you to wherever you’re going you’re going to have to put gas in it and do regular maintenance. There’s no way around it. You can’t go anywhere without gas and oil. The gas and oil for your car is relative to the software and technology needed to get your deals to the closing table.
Finally, you must allow other people to do things for you.
If you’re one of those people that think noone can do it as good as you (like I do), then congratulations! You’re part of the Egotistical Real Estate Investor Club. Time to retire from that club and realize that others MIGHT NOT be able to do it as good as you, but they can do it good enough! And all you really need is for someone to GET IT DONE.
When it comes to using automated real estate systems in your business, it means that you’ve graduated from being the technician (refer to the book called “The E-Myth” to know what “technician” really means) to being a true business owner.
The moment that you retire from being a technician is the pivotal change moment. The light bulb will go off and you’ll start to see and respect your business in a new light. You’ll start to value your time alot more that you do today, and you’ll see the truth worth of