There is no denying the potential buried within the landscape of real estate investing. It is a career path ripe with opportunities for those that are willing to take the chance. It is perhaps one of the most lucrative businesses for anyone that approaches it with the right mindset and a proper education. Truth be told, the rewards are limited only by your imagination and a willingness to procure them. There is one aspect of real estate investing, however, that can’t be overlooked: the freedom to create your own schedule. While some people invest in real estate purely for monetary gains, there are those who choose to because of the freedom it has become synonymous with. It is entirely possible to invest part time with the prospect of making a sustainable living. It is how you spend that time, of course, that dictates the profitability of your business. Fortunately, there are steps you can take – hacks if you will – that maximize your time efficiency and allow you to get the most out of investing part time.
Investing in real estate on a part time basis emphasizes the importance of time allocation. Every minute you spend as a part-time real estate investor is that much more precious for one simple reason: scarcity. You simply don’t have as much time to invest in the real estate end of things as a full-time investor does. With that in mind, you need to make sure your time is spent wisely. Here are a few time saving hacks for part-time real estate investors:
Time Saving Hacks For Part-Time Real Estate Investors
1. Go In With A Plan
The concept of a business plan is anything but new, and far from revolutionary. However, the fact of the matter remains: there is nothing else that will save your business more time and money than a streamlined business plan. As a part-time real estate investor, the first thing you need to do is establish a systems oriented business model specifically designed to attain the goals you have set for yourself. Menial, non-revenue producing tasks will be eliminated from your daily routine, making productivity habitual. Remember, the idea is to always be moving forward. If you can eliminate irrelevant tasks before they even show up, you are already ahead of the part time crowd.
Investing in real estate part time is not unlike any other business: it takes self-discipline. Hard work comes with the territory, but it is your discipline that will set you apart from the rest. That said, it has never been more important to have a workable business strategy to stick to until your goals have been met. A proper business plan will work to your strengths and keep you on track. The second you stray from your predetermined plan, you will be wasting time: the one thing part-time investors can’t afford to lose.
In creating a business plan, there are 11 basic components you will want to consider:
- Mission Statement: Clearly identify the company’s long-term mission. Be as concise as possible, and include verbiage that promotes growth. Focus on what you want to accomplish, not how you are going to accomplish it.
- Key Players: Identify who the CEO is, and any other key team members. Include their track records and years of experience.
- Market Summary: Summarize your particular housing market. Identify past, present and future performance. Each indicator can point out opportunities for your company.
- Opportunities: Identify problems consumers have had issues with, and define the nature of service opportunities created by said problems.
- Business Concept: Summarize the key technology, concept, or strategy on which your business is based.
- Competition: Familiarize yourself with local competition and the advantages each has over each other.
- Goals & Objectives: List out your goals for the next five-years. State specific, measurable objectives for said goals. Include both market-share objectives and revenue objectives.
- Financial Plan: Outline a financial plan to meet your five-year goals. Include both a financial model and price assumptions for your specific market. You will want to make sure you highlight expected annual sales and profits.
- Resources: Identify the resources your company will need to get started: personnel, technology, finances, distribution, promotion, products and services.
- Risk V.S. Reward: Weigh alleged risks versus the potential rewards in your specific market.
- Key Issues: Identify issues that may present themselves in the near and long-term future.
Implementing a business plan will not only save you time and money, but also establish a solid foundation to build the rest of your business on. With a sound plan in place, you are free to grow as much as your aspirations will permit. Set aside one day to make a business plan, and it will provide you with a road map to the future. Reference it whenever you hit a roadblock, and it will point you in the right direction without wasting time.
2. Hire An Effective Real Estate Team
Part-time real estate investors are strapped with an inherent disadvantage to those investing full time the minute they decide pursue a career in real estate: they simply can’t invest the same amount of hours. Fortunately, for the sake of the part-time investor, there is a rather easy solution: hire an effective real estate team. Teaming up with the right people to invest in real estate is a rather elegant solution to a common problem. Think about it; teaming up with someone else can essentially double your capacity to invest in real estate. An entire team, for that matter, can take your business to the next level.
Before you can even consider the addition of a business partner, you must conduct a self-evaluation. Understanding your current position as a real estate investor, in association with your tangible skills, will ultimately delineate between the characteristics you require out of a partner. Your goal is to find someone that compliments your strengths and mitigates your weaknesses. You must conduct an honest self-evaluation in which you assess your own strengths and weaknesses with a critical and impartial eye. Doing so will reveal an unbiased view of yourself that you may not have been aware of. As a part-time real estate investor, it may be in your best interest to team up with someone who can invest full time. That way, your business will not be relegated to the back-burner Monday through Friday.
The partner you choose can greatly influence the profitability of your company and the future it has. This is not a decision to be taken lightly. Choosing a work partner is not the same as getting an opinion on a deal from someone. A partner has a vested interest in your success and may not do things the same way as you – which is not necessarily a bad thing. With any partnership, the rewards must be greater than working on your own.
Outside of a partner, there are more ways to utilize the help of others. As a part-time real estate investor, it is entirely possible to enlist the services of a virtual assistant (VA). For a minimal fee, a VA can take on monotonous work that would otherwise remove you from profit-producing tasks. The time they save you can be spent on more important things. Again, just as you would with a partner, make sure the work you have a VA do is worth the free time it results in. If you do nothing with the time they save you, it isn’t worth it. It is the newly freed up time that is what is important. Use it to your advantage and make things happen.
In reality, working with a partner does not save you time: it maximizes it. You will be getting more done in a shorter period of time. It is the time left over that will be worthwhile.
Investing in real estate, on top of working a nine-to-five, is by no means an easy undertaking. It requires a lot of hard work and dedication. There will certainly be very high points, and possible very low ones as well. However, for those that are dedicated to the craft, it is well worth it. Fortunately, there are some time hacks to make things a little easier on your part. If you learn to maximize the time given to you as a part-time investor, you will certainly find it easier to balance a real estate business with a subsequent career.
For more information on time hacks for part time real estate investing, keep an eye out for part two of our series.