What are the advantages of large scale investing and how can you incorporate them into your business? Is going bigger really better?
One of the biggest gripes of those in the real estate industry is trying to pick up traction to close more deals. Some seem to hit the ground running, closing dozens of deals a month. Others seem to limp along, closing one a month. Even if you are making some pretty significant sums on the occasional deal, there are huge advantages to be found in large scale investing.
So why are many in the industry refusing to practice large scale investing?
Some lack the vision, while others don’t have the capacity due to the limitations of their strategy. Even if you don’t care about the money, large scale investing can provide savings and deliver increased returns and net profits. Who doesn’t want to maximize their potential?
So what’s the key large scale investing and what kind of tangible difference can it really make for you?
Going big and doing it sustainably, without jeopardizing the future of your real estate investing business, definitely relies on systems. If you don’t have them, invest in your real estate education before rushing into large scale investing. Investing in a proper real estate education can benefit even the most savvy investor.
The benefits of doing more volume can lead to increased revenue. However, done right, volume can mean big discounts and a much fatter bottom line.
For example; PulteGroup recently began tearing down thousands of homes in Michigan and was able to drop the cost of each project from an average of $10,000 to $5,000 per unit.
Cheaper labor and deals from vendors can contribute to your bottom line.
Investors opt for multifamily apartment buildings or builder buyouts in bulk in order to drive down the cost per door.
Recognize that going bigger means getting a jump start on compounded returns, which can put you years ahead towards reaching your financial goals.