Have you ever intended to scale your Real Estate Investments across multiple cities? If so, how ??
Even if you ever thought, then I must say you might have found yourself sometimes stuck, and out of ideas on how to scale up your real estate empire. If someone could help you out to the secret sauce, you’d climb to the top very easily.
That is exactly what I set out to find your secret sauce. Wondering might lead you to read the article further for building a massive empire.
Best Ways for Scale Up Your Real Estate Investments
Work on Disciplined Spending
There is nothing such called closing down a real estate deal. Perhaps there is a need to determine how you use your profits to transpire. Therefore, it’s important to spend money in the areas that will contribute to a growing and scaling up your real estate across multiple cities.
Yes, you need to spend money on finding an accessible office space, ramping up marketing, etc. But you need to make sure you spend it wisely. When your business is rolling, it’s important to be disciplined while spending and knowing the purpose behind it. Because your stake over real estate will never grow to the level you desire if you constantly catch up with debts.
Finding a Niche
Often you will find individuals work at their best when they are comfortable with that field. The same thing applies to real estate. Try developing a niche because once you become specifically trained in that field, the more credibility you will build. At times, you will start, to be recognized as an expert in that field. This will even translate your credibility into additional deals. Because in real estate being a master of one niche is better than dabble in many.
Delegation of Authority
Delegation is necessary for scaling up your real estate investments. One of the easiest ways to delegate is to hire a professional expert like an asset manager or a property manager. This is so because as your stake over the real estate increases, you will desire to offload the less important tasks or tasks you aren’t particularly good at to others.
But that doesn’t mean that you either need to hire an expert when you are running out of money or hiring someone for a position that is too vague to be useful. So, the first thing before delegating the authority is to look and understand what exactly you should do or not be doing.
Measurement of the Performance
With delegation, measuring the performances of the key personnel is also important. As they might land up in being lazy and ineffective. Either you hire assistants, contractors, or agents, it is necessary to monitor their performances as they might be wasting your money without providing much value to your work.
So, for every rehab, always try to compare the actual expenses made to the budgets. For this, you can set up Key Performance Indicators or KPI’s for each employee. In this method, each employee needs to be responsible for a certain area and there should be one or two key numbers that will measure their performances. For example, if you hire leasing agents, compare the applications per showing to leases per show.
Standardize the Property
For this, you need to determine what renovations will add more value to your investment properties based on the ROI, comps, property type, location, and other factors. Then, act accordingly on the same set for working on the renovations of all your property. For example, you can use the same interior paints, carpet, light fixtures, or lay down two exterior paints for switching to the best outlooks.
Further, you can set a policy manually for how to work with tenants. For example, each tenant must be given one opportunity for planning the payment. Though such policies will take time itself you need to think in the right way. There’s something called ‘fatigue decision’ and every decision does take energy for implementation. So, put on the first day itself these policies and save your energy for big decisions.
Having these decisions will make it easier to delegate the tasks since they know, they need to follow a pre-set plan and would not do something that you would not accept.
Automation and Outsourcing
Before you start scaling up your investments with more resources, whether it be your time, energy, or money, find and work out to see any inefficiencies and bottlenecks, if they exist.
For this consider looking for opportunities for automation. Either it is cloud computing, setting up marketing systems, or documentation practices, look over your existing framework and find ways to automate the streamlined process.
While initially most of the real estate business tends to work on the fields which thing must-do. Rather it would be good if you ruthlessly examine all your tasks and put them to the ROI test. This would help you to know whether spending your precious time will give any gains later. If not, remove the task from your planner to something else.
Regardless of whether you are aware of not, you are always judged on how well you perform on every deal. Whether you write a plan and stick to it, doesn’t matter much. The entire thing depends on how you complete a deal to impact your scaling of real estate. Unexpected things will rise in every deal, but the important part is whether you ought to be a problem or solution to this?
Being ready to be known as an investor who helps to push forward or keep things together is worthwhile and eye-catching, despite backing off. You also need to assure your team that you’d deliver quality work and be easier to work with. Though these things seem minor, yet it can have a big impact on positive attention. This is what will attract your people around and help in scaling up your real estate across multiple cities.
Test your Branding
When you start working on scaling up your real estate, and find greater exposure that increases your publicity and motivated seller leads, you need to test your branding performance. This is quite necessary to check whether your platform is ready for the onslaught.
So, look around and find whether your website is working, is your site mobile-friendly, are your landing pages optimized?
Also, go through your social media channels and look whether your Facebook, Twitter – are looking vibrant and are updated weekly.
While working you will find various departments overlap with one another. So, working on the delineate style for assigning the roles can be worthwhile in this. This is so because you do find that under the accounting division, setting KPI is hard. Moreover, if you charge someone primarily for bookkeeping who also oversees the turnover, and you have set the KPI for the latter but not for the former, this might corrupt and create a risk of being dishonest.
And the sooner you can split the accounts payable from accounts receivable, the better it is. As with this, each member will focus on achieving their goals instead of trying to just make sure if everything is complete. Therefore, create sandboxes, and include your staff separately in their sandbox.
Everything Begins With A Single Step – drive the conclusion out.
As a real estate entrepreneur, you are often tempted for immediate results and look to make your stake quickly from zero-to-sixty, without knowing whether that strategy will be worthwhile or not.
So, instead of looking at a shortcut, it’s important to remember that these small adjustments as said above, can make big impacts down the line. Hence, while scaling your real estate across multiple cities, don’t be afraid to look for slow and steady progress. For this, you simply need to find the approaching strategies that can evidently, scale up your portfolio than you ever imagined.
Real Estate Investments FAQ’s:
Often you will find individuals work at their best when they are comfortable with that field. The same thing applies to real estate. Try developing a niche because once you become specifically trained in that field, the more credibility you will build.
While working you will find various departments overlap with one another. So, working on the delineate style for assigning the roles can be worthwhile in this. And the sooner you can split the accounts payable from accounts receivable, the better it is. As with this, each member will focus on achieving their goals instead of trying to just make sure if everything is complete. Therefore, create sandboxes, and include your staff separately in their sandbox.