What factors have you been overlooking that could potentially maximize your real estate profits?
The Profit, a reality show on CNBC, follows investor Marcus Lemonis as he investigates businesses in need of help, evaluates them, and lends a hand. That said, what can investors learn from Marcus, and the way he approaches new businesses? Can you apply what he does on TV to what you do in real life?
Here are a few overlooked factors that can help you bring your real estate business to the next level:
1. It’s All About People: Even if you have a 100% automated real estate business, your success and survival is dependent on the people. Even if you have no team, no vendors, or business partners, you still have customers. Even if those customers are other businesses, they are run, occupied, and driven by decisions made by real people. You’ve got to pay attention to what people want, their thought processes, how your moves make them feel, and the relationships you establish. Remember, real estate is still a people business. While customers are the fuel you run on, it is your team (in-house or remote) that is the engine.
2. Highest and Best Use: The highest and best use concept is absolutely critical in any real estate business. It can be used to unlock profit you never even knew existed. As corporations and individuals, we also need to consider our highest and best use if we want to remain relevant. It’s interesting to see extremely successful investors and business owners help others. Some will definitely find this their highest and best use. It’s no secret that the more people you help, the more your business will grow.
3. The Value Someone Else Can Bring: A business or career can remain stagnant for years without any intent to move forward. Without warning, things can take a massive turn for the better, and profit can be unleashed with just a few simple tweaks. This often comes when an outsider lends a hand, or even just their opinion. It may be a million dollars, or introductions to new connections, but it can also just be a few business adjustments that take relatively little time to initiate. It can come from a coach, new partner, investor, or team mate.
4. Every Detail Matters: As pointed out before, every detail matters. We can’t wait for perfection to get started, but we can’t stop improving either. Even the best real estate websites have dozens of tweaks that can be made and split tests to perform that can increase conversion rates.
5. The Value of Real Estate in Business: Real estate is a critical factor in every business. This is even true for today’s hordes of internet professionals. Where you are located, who your neighbors are, and how much the rent is can all makes a difference. Make sure you are running your business from where you are comfortable.
6. Your Example Matters: Your work ethic, appearance, and how you carry yourself matters. You need to set the right example for not only your own employees, but the people you enter into business with. The better you carry yourself, the more respect you will demand. Don’t let the people you work with get the wrong idea.
7. Get Your Accounting in Order: You’ve got to have your books straight. It may not be the fun part of the business for real estate entrepreneurs, but you can hire someone. If your books aren’t organized, you’ll have a hard time raising capital, finding partners, operating sustainably, and selling the business.
8. Money Can’t Always Help: Most real estate investors think they need more money in order to find success. The truth is that a million dollars can simply be wasted if the business isn’t operating right in the first place. Others might be able to achieve far more with $100,000 if they already have a model and system in place. Get the mechanics right, then consider raising more money.
