So you’ve been investing in real estate for a little while. Maybe you have a rental property or two. But you’re not really seeing results yet. You’re doing everything right, but you’re not quite where you want to be.
Things aren’t moving fast enough yet. How do you move the needle? How do you start actually seeing results? How do you start actually building wealth?
Being a real estate investor is tough. If you want to actually start seeing real results from your rental properties, it starts with these steps.
7 Steps to Building Wealth in Real Estate Investment
Fix Your Cash Flow
If you’re finding that your money isn’t growing like you want it to, one of the first things you should do is examine where it’s going. Look at your numbers. How positive is your cash flow? Is it positive at all? Weigh your expenses. See where you can cut back, reduce, and grow to be more cost-efficient. If you can increase your profit margins, you’re going to increase your wealth. It takes regular examination and adjustments to ensure that you’re getting the most out of your investments.
Budget Better
Go beyond your investments. Are you budgeting well in your everyday life? Did you start spending a little too much with your passive income started flowing? It’s time to start budgeting better. If you want to build true wealth, you’ve got to hold tight to a budget. Don’t fall into the traps that lead to debt. Live within or better yet, below, your means. Limit your disposable income, focus funding into your savings and investments, and dedicate yourself to growing your financial future.
Prepare to Scale
The only way to truly grow your wealth in real estate investment is to scale. You can’t sit with one or two investment properties and hope that they’ll carry you through to retirement! No, you have to work to grow your business. How do you scale? You have to work to make the right connections, find the right properties, save money, and leverage capital to do it. You need to build you team and ensure that your systems are solid. You want the acquisition of new properties to be smooth sailing!
Invest in Service
What sets you apart from other real estate investors? Have you ever really thought about it? One of the best things you can do for the health of your investments is to really start valuing service. Value not only for your tenants, but for yourself. We’re in a people business—and that means it’s paramount to value the people we serve.
How do we do that as real estate owners? Through property management! They are the ones who serve not just your tenants, but you, too. An effective property manager keeps everything running smoothly and everyone happy and content. Don’t underestimate their value.
Specialize in Your Strategy
There are so many different avenues you can go down in real estate investment. Just remember: the jack of all trades is the master of none. If you want to excel, you’ve got to find your niche and master it. If passive investing in single-family properties is your thing, then you’ve got to be the best at it. Devour everything you can find on the subject. Get into the groove with a strategy that really works for you.
Ultimately, you want to be associated with that strategy. When a single-family property comes up? Your name should come up. People should be coming to you for advice.
Partner Up
There are a lot of ways to find partnership in real estate investment. Most commonly we think about partnering for leverage: using joint ventures for capital gains. We find investors to invest in us, we look for private money lenders, and seek out equal partners in a two-heads-are-better-than-one approach.
But there’s another kind of partner. There’s a turnkey real estate provider. So many people think of turnkey providers like they do sellers: and that’s just not the case. Turnkey providers are effectively partners. They allow real estate investors to focus on the bigger picture of their investments by taking care of the details of investing: from buying and renovating ideal investment properties to providing top notch property management.
Turnkey real estate providers want to see their investors succeed. They have a wealth of information that investors at every level of experience can draw from and apply to their strategies, and so many resources that they can tap into.
Traditional partners and lenders play a huge role in the success of investors: but the power of a good turnkey provider is not to be underestimated!
