“Thoughtful consolidation and project management enables you to identify areas in which you need more help or different types of equipment to reduce expenditures or maximize productivity.”
Real estate investors often find themselves overwhelmed, which is one of the main sources of disappointment in this popular industry for new investors. Ask any active investor at a local real estate investors’ association (REIA) meeting what surprised them when they started investing full-time, and most will mention that they did not have as much time as they thought they would when they left their traditional employer.
“Even new investors with only a couple of properties need project management assistance,” observed Motili vice president Russ Williams. Motili is a national company offering a network of repair and maintenance contractors on local levels.
“We find repeatedly the move from owning one investment property to owning two or three can be incredibly time-consuming if they do not have the right systems in place to help them make the right improvements to those properties and identify what repairs and maintenance they need, ahead of time. They end up really stressed and some of them even throw in the towel on investing entirely.”
According to Motili analyses (the company tracks portfolio performance for each client over time), investors who consolidate their projects in one place and under one management umbrella, be it virtual or otherwise, stand to save nearly 30 percent on labor and equipment when flipping or rehabbing to rent. In large part, these savings are the result of the company’s exclusive partnerships with equipment manufacturers and distributors, Williams observed.
“We are often able to offer integrated service and equipment savings between 20 and 30 percent, depending on how effective an investor may be at managing their own projects on their own,” Williams said, noting that even experienced investors often fail to realize they should be consolidating labor and supply orders to reduce costs. “Thoughtful consolidation and project management enables you to identify areas in which you need more help or different types of equipment to reduce expenditures or maximize productivity,” he said.
Whether you are brand-new to real estate investing or have a portfolio of dozens of houses, taking the time to assemble and then analyze the vast amounts of information about those deals and properties will pay big dividends both immediately and in the future.