As a real estate investor you are in charge of your own business. It is no different than any other type of self-employment. You make the rules, create the culture and shape which areas of the business you want to focus on. As great as this sounds not everyone is cut out for this type of responsibility. One of the biggest adjustments for new investors is acknowledging that they are running a business. Even if you come from a job with people working under you it is different when you are the only one in charge. The quicker you accept these changes the better your business will be. Here are few tips to help you adjust to life as a self-employed real estate investor.
- Self-Motivation. As much as you may have despised having a boss there were times when it drove you to work harder. Instead of having someone constantly looking over your shoulder it is up to you to create your own motivation. This is usually fairly easy if you have a family to support or a certain income level you want to achieve. However there are times when may not be as motivated as you need to be. Since you don’t have to be in the office first thing in the morning there are days when you may want to hit snooze and sleep in. If your buddies are playing golf you may feel the need to join them for an afternoon round. You are the only one to push you where you need to go. Unless you have a partner there is nobody to answer to. Getting motivated to be successful is easy. Staying motivated during difficult times is a challenge.
- Structure. It is important that you have some structure to your day. There are several different ways to invest in real estate. While you can invest any way you want there needs to be a method to how you do things. It is not enough to simply take the day as it comes and see what presents itself. You have to create your own fortune by going out there and making it happen. Not only do you need to put the time and effort in but you need to do it the right way. Calling prospective sellers and leaving voicemails is usually not enough to secure a deal. You need to call at the right time of day and talk to as many people as possible. You need to make every minute of the day count. The more structure you have for how and when you do things the more success you will have.
- Decision Making. There is a fine line in the real estate world between being assertive and taking measured risks. You always want to have as much information as possible before you make any important decision. That being said there are plenty of times when you need to act quickly if you want to secure a deal. Being self-employed often means there is nobody to bounce ideas off of in a pinch. You need to rely on your education and instincts. Sometimes you will take the wrong path but you will only know by doing it. The investing business is littered with people who took the middle road. This may be the easy way out but it won’t help you secure deals, develop relationships or grow your business. Every day there will be a handful of important decisions that only you make. Everything from the color of your website to where you spend your marketing dollar is on the table. Being self-employed means being able to make difficult decisions and living with the consequences.
- Team Building. The best investors understand that they need a good team around them. While you may be able to handle every task that comes your way it doesn’t mean you should. There are only so many hours in a day. Your time is best spent on areas where you excel. One of the reasons many self-employed investors do not take on help is because they are nervous about having a team underneath them. They do not want to have people report to them. They are concerned that whoever they hire cannot do the tasks as well as they can do it and don’t want to deal with trivial matters. By doing this you are stunting your growth. Every successful investor has a solid team at their disposal. They spend the time training them if they have to and make it clear exactly what they want. The minute you realize that building a team is important you will see your business take off.
- Numbers. Numbers are at the heart of every business. It is the scorecard in which your business is judged. It is not enough to close deals you need to close profitable deals. To help ensure profit you need to know every expense associated with your transaction. This can get overwhelming and time consuming but it is directly tied to your bottom line. If you aren’t a numbers person it is a good idea to hire an office assistant or even an accountant to help you stay on track. Even if your business is still in its early stages you will most likely save more money by hiring the right numbers person than by trying to do things yourself.
Doing good work is no longer enough when you are self-employed. You need to know the ins and outs of every area of your business. Whether you acknowledge it or not how you run your business is the most important part of it.
