When do you intend to scale your real estate business? Do you ever? If so, how?
It is often lost on real estate investors: running a real estate investment company has become synonymous with running a business. That said, any neglect to treat your entrepreneurial endeavors into the real estate landscape like a proper business will likely be met with little to no success. You must learn how to start your own business. From the moment you decide to start your own real estate company, be sure to treat it like the business it is. That means you will need to take the appropriate steps to see to it that your company grows and remains sustainable. Growth, for that matter, is critical, but it must be done at a rate that you are comfortable with.
I recommend growing at a pace that enables you to simultaneously incorporate systems and bring on talent. After all, it is entirely possible to grow too fast. If you grow too fast, you may lose everything you worked so hard to achieve. If you don’t grow fast enough, you may lose your place in the market. Striking that delicate balance can be confusing, and even frustrating at times. That’s why I have laid out a few simple steps you must complete when scaling your real estate business. The following will help you get your business where it needs to be with the fewest growing pains possible:
1. Disciplined Spending: There is nothing quite like the feeling of closing a big real estate deal. What you do with the profits, however, will determine just how things transpire in the future. That’s why it is important to spend money on areas that can contribute to growing and scaling your real estate business.
Sooner or later you will begin looking at office space, ramping up marketing, and treating yourself to something you may have wanted for a while. After all, you need to spend money to make money; just make sure you are spending it wisely. When your business is rolling, it is more important to be disciplined in spending than in times when you are slow. Spending money just because you have it is a recipe for disaster. There is nothing wrong with spending money, but there has to be a purpose behind it. Are you spending money to generate or enhance your business? If the answer is no, you should consider spending money in another direction. Your business will never grow to the level you desire if you are constantly playing catch up with debt.
2. Find A Niche: People like to work with people they are comfortable with. By developing a niche, you begin to establish relationships. The better you become in a specific area, the more credibility you will build. If you have an interest in tax liens, do what you can to become the best tax lien investor in your local market and let your experience speak for itself. Your niche truly doesn’t matter, as long as you are passionate about it. In time, you will start to be recognized as an expert in your field, something for which there is no replacement. Before you know it, your credibility will translate into additional deals. In real estate, it is better to be a master of one niche than to dabble in many.
3. Relationships: This industry has as much to do with a proper real estate investment network as it is about the assets you are investing in. In fact, I could argue that the relationships you establish will become your most important asset as an investor. It is entirely possible for the right partner to elevate your business to the next level, and beyond. Not everyone will be a good fit, but it only takes one person to completely alter your perception of the investing industry. In fostering one solid relationship at a time, you will be able to grow your business in a way you never imagined possible. That said, don’t hesitate to build relationships through networking meetings and investing clubs. There are dozens of ways you can grow your real estate networking base. You never know who will be the person that changes your business. Treat everyone you meet on every deal as if they will be that person.
4. Execution: Regardless if you know it or not, you will be judged on how well you perform on every deal. Never has it been more important to learn how to write a business plan and stick to it. It is entirely possible for your reputation and the manner in which you complete a deal to impact the direction of your business. Unexpected things tend to happen on almost every deal. When they do, are you part of the problem or part of the solution? You want to be known as someone who helps push things forward or keeps them together. When you make an offer, the people around you need to know that you are serious. You are not going to play games and back out a week later. You are also going to deliver quality products and be easy to work with. These may seem like minor things, but they help bring you positive attention. This is what attracts people to you and helps build your business.
5. Consistency: Most people are familiar with the old story about the tortoise and the hare; slow and steady typically wins the race. You can’t build a real estate empire until you start with the first step. Regardless of your previous outcomes, you need to keep with your marketing, networking and lead generation. In doing so, you will get the results you are looking for. Instead of trying to grow from point A to Z, you need to do it one step at a time. Make little improvements with every deal you close. Remember, consistency is key.
Any attempt to scale your real estate business should be done at a rate you are comfortable with. However, you need to leave room for systems and people to grow along with it. Sustainable success isn’t possible without the help of these tricks, so get to work on perfecting what I outlined above.