So you’ve already started your real estate investment journey. Maybe you’ve bought a few properties, perhaps you’re renting them out, or perhaps you’ve even done a few fix-and-flips.
The first thing to say is well done!
Seriously, you’ve taken a huge step most people never reach and you should take a moment to feel good about that accomplishment.
When you’re done taking that moment, however, you’re probably going to want to look at how you can scale your business. Sure you’re earning good money now, but how can you expand? How can you grow?
Today we’re here to take a look at a few simple steps you can take to boost your real estate income and build a bigger, better business.
Always Keep Researching
If there’s one lesson that translates to almost every skill, it’s that you’re never done learning. When it comes to real estate, this couldn’t be more true.
Real estate is a market, and markets are always shifting. Sometimes it’s in response to large-scale economic decisions, sometimes it’s because of current trends and tastes in home buyers, and sometimes it’s for smaller, more nebulous reasons.
If you want to stay ahead of the market you need to keep up to date with the latest news and the best way to do this is to be a part of the online real estate community. Not only are there loads of great social media influencers out there sharing their own experiences and knowledge, but there are also loads of other investors taking part in the discourse.
Whether you’re a newer investor, or a long-term business, it’s vitally important that you stay up to date on what people are saying, because you never know where the market will go next.
Know Your Capacity
While we all dream of unlimited growth, the truth is that we all have limits. One person can only do so much. If you’ve got six properties being renovated, that’s six ways your attention is being split and six different opportunities for something to go wrong.
That’s not to say something will go wrong or that you can’t have multiple projects going at once but you need to have a good idea of both what your brain and your bank account can handle.
The real trick here is to scale with care. If you’ve handled three projects, try four. If four worked well then you can try jumping to five.
Maximizing profits is all well and good, but it’s important to remember that this is not a race. Pushing to expand too fast can lead to major setbacks in the long run.
The Power Of Teamwork
Knowing your limits is one thing, but pushing past your limits is another. If you really want to start seeing the big bucks then you’ll want to bring some other people on board.
There are several different kinds of teamwork that go into real estate but broadly speaking they can be split into three groups:
1. Contractors: the people you’ll hire to renovate and repair the properties you purchase.
2. Backers: the people providing your financial backing, such as banks or lenders.
3. Financial Partners: anyone who owns a stake in your properties.
With all three of these groups, it’s important that you build good relationships, and the key to these relationships is trust. Over time, the more successful ventures you have, the more these people will want to work with you, which is why your reputation is so important.
So there you have it. It might seem obvious, but the best way to build a better real estate business is to be honest and easy to work with. If you can master that then you’re ready to take the next steps.