In this series we’re learning How to Go From $0 to $10,000 a Month as a Real Estate Investor. This is part 9 of a 10 part series.
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Now your business is cooking and it’s time to find the right people to help you manage the many daily activities that you’ll be performing. This is where is gets fun, you’re becoming extremely confident in you business model, you can answer most every question asked and you’ve gradually become an expert in your field. Now it’s time to automate your business so you can accomplish bigger and better things or just enjoy the music.
Since you have two facets to your business, “flipping properties wholesale” and “buying cash flow properties for a long term hold” the management style will be very different, so let’s discuss both in detail.
3 Key Individuals to Manage your Flip Properties
1. A great real estate agent will be able to find properties that will work for your model, after doing so many deals with you they’ll understand your buying criteria and will work closely with the appraiser to find you the best properties to make offers on. The agent should be writing at least 30–50 contracts a week.
2. An escrow agent that is on it, they must be able to handle any problems and make your investors feel like a million bucks. You want great customer service. For example we have one escrow agent named Adrea we’ve worked with for 5+ years; she knows our deals inside and out. She’s the best in her field and she’s helped us make a lot of money.
3. The transaction Coordinator will be your right hand person; they’ll know every detail about each file and will be moving all the deals forward to completion. They’ll be working with each person on the team and they must have great people skills. Their sole job is to get the deals done.
You’ll be signing contracts, signing closing documents at the title company and dealing with your fix and flip investors; this is the fun part because your team is moving your business forward and your making new key relationships.
Managing Cash Flow Properties
This is bit easier because you can hire a property management firm to deal with all your properties; they’ll find tenants, collect rents, take phone calls and fix any problems. Give them a $250 leeway to make decisions and evaluate them in 30 days and see how they’ve done. If done correctly this will not take much if your time. Fair Warning, a bad property management firm will cost you so much time, money, and frustration so choose wisely and get the highest referred team you can find.
Once you have these key people in place your business could run on auto pilot, we haven’t quite figure this on out yet in our business but we’re working toward it everyday. The wonderful thing is work doesn’t really seem like work, so putting in 12–15 hour days is fun, for me at least.
Well we’re almost done; the next article will be Living the Dream, which will be the last post and the completion of this 10 part series.
If you have a question for Mike or I regarding this information, please leave a comment below.
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