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Creating Systems to Run Your Real Estate Investment Business, So It Doesn't Run You! |
Real estate investment is your business. You've been doing it successfully for the last couple of years and then all of sudden you get sick. You are unable to take care of your rentals and your rehab projects the way you used to. You are married, but your spouse has never really been interested in the business and has never participated. Now what? That is a scenario that could happen to anyone who is running his or her own real estate investment business at any time. What would you do if this happened to you? Would you be able to have someone step into the business and have it running just as well for him or her as it did for you? Or would it all collapse around you because all of what you do is tightly locked up inside your head?
If you are in the real estate business you are more than aware of the amount of paperwork and details that there are to attend to on a daily basis. If you purchase and hold properties, there are tenants to manage. This means payments to collect, evictions to file, late notices and other invoices to send, maintenance to conduct and complaints to remedy. If you purchase and flip, this could mean purchasing materials for your contractor, making sure that the rehab schedule is being met, making sure that the work is being done to your standards, and making sure that when the property is completed that it is sold quickly so as not to eat into your profit margin. Now if you don't have any systems in place you can easily see that it might be next to impossible for a stranger, who has no knowledge of the business, to jump in and take care of your business. Understanding the importance of creating systems is crucial for running any successful business and protecting your investment.
First of all, you will need to sit down and really think about all of the different processes there are in your business and break them down into easy to understand steps. This may seem impossible at first, but once you've got them down you will never to do it again unless of course you change a process. A simple tip would be to create a binder that is familiar to someone else that has detailed instructions on how to perform each aspect of your business. It should also identify which forms are used for each processes and where those can be found. For instance, if you rent properties you may want to have a list in the binder that identifies each step of the rental process (i.e. how to answer a rental inquiry call). Next, you could list what is required of a tenant who applies to lease from you (i.e. good credit, no felony convictions, application fee, etc.), and so on until you reach the eviction process.
In addition to listing all of the steps and forms associated with these steps you should list where someone will locate these forms. Are they on a hard drive (which is recommended), or are they in a file cabinet. Either way, knowing how to do everything, but not having the correct forms could have you out of business or in legal trouble in a flash. On your hard drive you might have a file that you label "Lease Documents". In this file you could have your lease agreement, your rules and procedures form, your lead paint disclosure form, your security deposit policy form, and so on. In another file on your hard drive you might have "Eviction Materials" which would include all of the forms needed to process an eviction.
Creating systems for your business will not only protect you in case you are unable to run your business yourself, but it will give you piece of mind while you are healthy and still able to.
About AuthorMatt Bodeman and Scott A. Rozanski are the "Millionaire Real Estate Pros." They have been helping others discover how to make huge profits in the acquisition of undervalued properties for
years. In just the last year and a half alone, Matt and Scott have purchased over 50 properties using no money of their own for a profit of nearly two million dollars.
"The Millionaire Real Estate Pros'" mission is to help others discover the "No-Nonsense Way" to accumulating wealth with real estate by providing teleseminars, seminars, CD's, books, ebooks,
DVD's, Boot Camps, and their "No-Nonsense Way" To Real Estate Investment System. They help others to discover how to become empowered in their lives and to realize financial freedom.
If you are interested in discovering how to make big money in real estate the "No-Nonsense Way" and realize financial freedom for yourself without all the hype or the gaps that come with
traditional real estate products, please visit them at www.millionairerealestatepros.com
Source: ArticleTrader.com
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