The Business of Property InvestingOctober 15, 2015
Hacking your USA real estate strategy
Let’s take a closer look at the business of property investing and kick off this article with a quote from Warren Buffett’s mentor, Benjamin Graham, “Investment is most intelligent when it’s most business like.”
Investing in property is a business. If you own one investment property then you are in business. If you own one hundred investment properties you have a larger scale business. If you are researching your first investment property, then you are in startup mode and must adopt a commercial mindset.
Businesses exist for one reason and that is to profit. The second reason is to grow. So how do businesses accomplish this? They have goals or targets. There is no company in the world that simply turns over a profit year after year and grows without hitting predetermined targets or KPI’s (key performance indicators). Giants like Apple and Google have goals and your US property investment business requires one as well.
How do businesses achieve their goals? They have a plan. You may have heard of a business plan before. However, your investment business will require an ‘Action Plan’. Once you have a goal that you are working towards you must create a plan to make accomplishing the goal become a reality. Goals and proper planning are how businesses mitigate risk, measure their performance and profit.
Do you ever think about how the entrepreneurs who we see on television make it all happen? We all have the same 24hours in every day. How do Mark Zuckerberg and FaceBook, Richard Branson and Virgin or Mark Bouris and Yellow Brick find the time to build and grow these iconic brands? The answer is the third component to how businesses profit and grow. They recruit and rely on a team of people to achieve the organisation’s goals.
Read any book by any successful industry leader and you will see the common theme. They all have a team approach to business. The Branson’s of the world realise that they don’t know everything and surround themselves with smart people with skills and knowledge that they don’t. Your real estate investment business, small or large, is no exception.
Here’s the great news about investing in brick and mortar; it is a time tested strategy that boosts wealth and income. What’s even better is that it is a social business. That’s right, real estate investing requires a team of people to be successful and all of the seasoned operators understand and embrace this concept.
If you have a questions about investing in real estate there is certainly a professional that you can reach out to for the answer. What I truly love about the business of real estate is that all of the professions that make up and support the “industry” are full of people who want to help you succeed. That is correct; people want to see you be successful. All you have to do is ask for help.
Here is the hack that I promised for success in real estate. Start with a goal. Form a plan to achieve your goal and recruit a team of people who have the knowledge and skills to help you achieve that goal. This requires action and effort so don’t drop the ball. Here’s my challenge to you – find someone who is successfully doing what you want to be doing and ask them to help you. Do not be uncomfortable and do not be afraid. If you want to achieve success in your real estate investing business start by asking someone for help today.