I see way too many investors on a daily basis trying to save money by, for example, managing their property themselves, because they don’t want to pay the 10 percent (or whatever the amount may be) to their property manager.
Well, that is absolutely ridiculous! A good property manager is an expert at what he or she does, and whatever percentage you pay will definitely be worth it.
There are limits to what you can do
Remember this: You are just one person. You are limited to the hours in a day. You are limited in how much you can do on your own. So you need to surround yourself with people who are experts in their fields and who can do the things that you cannot do—or do not want to be doing. And property management is definitely one of those things you do not want to be doing.
Unless you are Superman or Wonder Woman, you cannot juggle a thousand, or two thousand or three thousand balls over your head at once. You need another thousand or so people to help you keep from dropping any of those balls.
Of course I know times can be tough and you may not be able to really afford to hire people to do this job or that job. And that is the time when you probably will have to do-it-yourself.
That’s how I had to do it. I started out doing everything myself. But now I have six or seven full-time employees.
Efficiency leads to growth
After a few years of doing everything myself, I was able to hire one person. And then we could do a little more, so that led to being able to afford to hire another person who was expert in another area where I wasn’t. And so on. It streamlines your operations, and that efficiency gives you the ability to grow even faster.
Because we have been able to do that in my company, we are now growing at a rapid pace. We have some amazing people on board who have their areas of expertise, and they help propel the company to a whole other level.
Are you bogged down in ‘idle money tasks?’
Now, sometimes it’s hard to take yourself out of certain parts of your work that I like to call “idle money tasks.” Meaning, if I am searching for something on Craigslist or I am sending out yellow letters or I am writing blogs or posting on social media, that is idle money. That is fluff. In those cases I’m not focusing on the actual business.
Those idle money tasks are something you need to outsource as soon as possible. You need to stop doing them!
Take yourself out of those roles and pass them along to someone else. You need to focus on the real money that is going to drive your business.
Focus on the real money
For example, in my business, Ohio Cashflow, the money for me is in sales. When I get on the phone with an investor and I sell that investor a property, that brings an extra $50,000 or $70,000 to the business’ bottom line. That is the money that I need to be focusing on. That is pretty much ALL that I need to be doing—getting on the phone talking to investors and selling them property.
Now, I have another company, ListNSell Realty, which is a brokerage. The money there, once again, is being on the phone talking to Realtors and trying to recruit them to come on board. That is all I should be focusing on, and I should be delegating everything else to someone else.
Within the company we also have a property management division. And the only thing I should be focusing on there is talking to prospect landlords who want to bring their business to us. And what I absolutely should NOT be doing is taking tenants’ phone calls, showing properties or updating all of the business office’s software.
It’s all about focusing on what is the highest and best use of your time and efforts. It’s about building a team. And that is what will allow you to grow and prosper.
Trying to do it all yourself will limit you. But when recognize your strength and focus on that, and surround yourself with a team of experts to handle the rest, then the sky is the limit.
About the Author
Engelo Rumora—“The Real Estate Dingo”—is a successful property investor, motivational speaker and serial entrepreneur who quit school at age 14, played professional soccer at 18 and now runs a multimillion-dollar real estate investment company. To date and against the odds, Rumora has been involved in more than 350 real estate deals equating to $50 million worth of transactions. He also successfully founded and runs five businesses in Ohio, including List’n Sell Realty, a Toldeo-based real estate brokerage that aims to be the #1 discount broker in the country offering an innovative, “first of its kind” referral program. You can follow him on social media at https://www.facebook.com/TheRealEstateDingo/ or https://www.facebook.com/engelorumora.