While different for everyone, real estate investing can be particularly easy to get started in, but difficult to master. There are so many moving parts and different ways to do business that it could be pretty overwhelming if you are just starting out. Instead of focusing on every niche or every hot new way to get deals, you should concentrate on doing three things well all of the time. If you can tackle the LLC’s of your business, you will consistently find more deals and enjoy the business that much more.
The LLC’s of your business have nothing to do with setting up a liability company and protecting your assets. The LLC’s are an acronym for things that you should be doing in your business every day. The first L is for learning. So much of any successful business is about how educated you are in your field and how you can apply it. There is knowledge that can be gained everywhere you look in real estate. There are seminars, websites and books that can teach you the basics of how to find and structure deals. If you are past that point, you should learn something from everyone around you. There is no right and wrong way to invest. That said, you can take something from one method and disregard what you think doesn’t work for you.
There is also plenty of education in every deal. Each deal is a unique process from the time you place an offer to the time you end up selling or renting your property. It can be a blur if you do not take a step back and chronicle everything you do and what works and what doesn’t. Some of the best lessons you will ever get will come from the real world experiences you have. Instead of quickly moving on to the next deal you should reflect on every step of the process, both good and bad. If you can take one thing from a deal that didn’t go your way you will be in a better position on every deal moving forward.
The second L is for looking for deals. Even if you have a few deals you are currently working on you should always be looking for the next one. Deals can fall out of your pipeline any time and it is important that you have a new one on the horizon. This means staying on top of your networking and marketing and allocating time and money to constantly get new leads. The minute you stop looking for deals your business will suffer. Deals take some time to develop and eventually close so if you start looking after your current deal closes you can go weeks or even months without generating any revenue. This requires you to wear multiple hats during the course of your day. You need to block off some time to go to investing meetings and stay on top or any marketing. Every person you talk to can be a resource for finding deals. Always have a business card on you and be ready to talk about your business. You never know where you next deal will come from but you need to always be looking.
The final letter is C which is for consistency. Most new investors get discouraged when they realize the business is much more difficult that they imagined. It is easy to think everything will go as smoothly as they see on TV and deals will just fall on their laps. To get to that point where you have multiple deals you need to be consistent with everything you do. If you are consistent with you marketing, making offers and networking you will find yourself with more opportunities and ultimately more deals. Conversely if you stop doing these tasks and become frustrated with your lack of progress you will see your business decline and deals tough to come by. Everything you do in business needs to be done with vigor and a definite start and stop date firmly in mind. Sending out one batch of direct mailing and waiting for the phone to ring will not do you any good. You need to send the same letter multiple times and make sure it is perfect every time.
The same goes with every offer you make and person you meet. Business is a numbers game meaning the more offers you make the more deals you will close. You may make 10 offers and only end up with two deals. If you give up after five or six rejected offers you will never know what deals you may be missing out on. The business can get monotonous but you need to stay consistent even when you really don’t want to.
If you focus on learning, looking for deals and staying consistent with everything you do you will see your business grow. These three areas are the backbone of your business and everything else is based off this. Whether you are looking for your first deal or a seasoned investor the LLC’s of your business should be your focus.