This is a great time to be a real estate investor. Between the low interest rates, increased access to capital, and improving market conditions, many things are heading in the right direction. While things may be working for you now, however, it doesn’t mean things will stay the way they are. Regardless of how successful you are, there will always be lulls in the business, or even periods where you feel overwhelmed. However, it is important to remember to always keep your business moving forward. Keep in mind, slow growth is still movement in the right direction. All it takes is one bad decision or one bad deal to set your business back. Having said that, here are four steps towards real estate growth your company can’t do without:
1. Grow at your own pace: While it is important to build on your success, you should do so at your own pace. There is nothing wrong with keeping things status quo until you are ready. Perhaps the biggest thing that derails many successful businesses is the temptation to get too big too fast. By growing before you have systems in place, you could do real damage to your reputation and your business. A successful direct mailing campaign may have yielded great results, but it doesn’t mean you should double the number of recipients. Adding to your list does not mean you will have twice the number of leads coming in, or deals for that matter. It means that you will have more people calling you, asking questions and eating away at your time. If you are not careful, it could cause you to lose focus of the deals you are working on or the contacts you have made. While you should always market and network, there is nothing wrong with maintaining the same level or productivity until you are fully ready to handle moving forward. Always grow at your own pace.
2. Continue to find good deals: The name of the game in the real estate world is finding good deals to work on. The minute you settle for less and compromise your integrity, you start to run into trouble. There will be times when you will go a few weeks without bringing any new homes to contract. Having said that, you may be tempted to make an offer on a property you aren’t completely sold on. If it does get accepted, your attention will revolve around a property with minimal upside. The alternative is waiting to work on a better deal, the likes of which you have no idea how long it will take. To that end, waiting does have distinct advantages. For starters, you won’t have to nickel and dime your way to a profit. You can make the best decisions for the property without having to sweat them out. Moreover, a small profit is always better than a small loss. You don’t want to get involved in deals where everything has to break right for you. Regardless of what else you have on your plate, always focus on finding good deals.
3. Focus on the numbers: It is important to always keep an eye on the numbers. You may have gotten a big check at a closing, but how much of it is going to expenses? The numbers should influence every decision you make. Fortunately there are numerous websites, programs and technological advancements that can help you. If you are not numbers based, you will grow disproportionately with your income, which could lead you down the wrong path.
4. Find the right work partners: While real estate investing is done by individuals, it takes a good team to become successful. Everyone you work with is an important member of your business. Your real estate agent, attorney, accountant, contractor and mortgage broker all play a role in your success. To take the next step and continue to grow, you need to align yourself with the right partners. Every networking meeting you attend and real estate investment group you go to is a chance to meet new people, or cement existing relationships. It is not a stretch to say that finding the right partner can completely change your business. They will give you access to more deals and could even find better ways to close them. They may also introduce you to ideas that you may never have thought of.