I've learned this mantra the hard way through many challenging lessons: don't attempt recreate the wheel. Be innovative, yes, but there are many processes and procedures that have been perfected for many years prior to your inception. Today I'd like to discuss systems, the infrastructure that allows real estate investors and operators to succeed, which are absolutely essential to building a cash-flowing, scalable real estate portfolio/machine. It is a must that you seek and implement proven successful systems into your business.
In real estate operation, look for efficiencies in every corner. Management practices have been perfected by many established firms, investors and employees for years. Follow these valuable examples and adapt them to your scenario. For example, when a tenant has a maintenance issue, instruct employees to follow steps 1-10. When collecting rent or paying bills, make sure a certain code is associated with each line item on the books and it is recorded appropriately, per the systematic procedures adopted by your group. These are two (of many) arbitrary systems to utilize for a complex management operation. I encourage my clients to implement efficient, yet flexible systems for each part of their management process. It is important to note that flexibility is key as nearly every situation is unique in it's own way.
When disposing or acquiring income producing real estate for my clients or partners, I follow a system for ensuring their goals are met and maximum value is delivered. I have adopted and adapted many tried and true principles to my practice to ensure consistency and efficiency. Many have been passed down from mentors, colleagues, books, seminars, and the like. The ingredients that I add are passion, persistence, deal navigation, personal influence, analysis presentation, interest matching, market understanding, adaptability and much much more. These essential ingredients mixed with a systematized approach equals tremendous success. By matching these systems with flexibility and other intangibles, we're poised for huge success.
If you are reading this blog, I assume you are focused on improving your financial standing through real estate investment. You probably have a set of very unique desires, needs, and wants when it comes to your life which you believe can be obtained through real estate. Implement proven systems and you will be a giant leap closer to those goals. If I can be of assistance, don't hesitate to contact me.