How to Manage Your Growing Real Estate Business

1 Apr

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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How to Manage You Real Estate Business

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.

Happy Investing!!

 

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6 Responses to “How to Manage Your Growing Real Estate Business”

  1. Jordan 25. Apr, 2009 at 12:57 pm #

    Hey Sean,

    Any word as to when the last article will be posted? I’m sure it will probably be the most fun to read ;) Also, how long do you plan on keeping this thread/link up? It’s always nice being able to come back here for references but maybe I need to start copying it all down if you’re going to be closing it soon. Thanks for everything!

    -Jordan

  2. Sean Terry 26. Apr, 2009 at 11:07 pm #

    Hey Jordan, sorry for the delay on the final post, I’m planning on shooting a video from my California beach house. I’ll be out there in a couple weeks for a wedding. I have no plans on taking the series down. How’s the RE market treating you lately? There has been a definite shift in the sentiment of investors recently. We’re seeing a mass influx of buyer’s flood the market here in the last 2 months. It’s exciting and exhausting…

    Cheers!!

  3. Jordan 02. May, 2009 at 12:39 pm #

    Sean,

    No need to apologize, everything you’re doing sounds exciting! I too have been pretty busy. I actually just got back from Iraq after doing some private security work, all while trying to get ready to move into the new house I just built. Even in the more stable mid-west region, foreclosures are in abundance, and I’ve definitely been taking advantage of the extremely low rates. I know what you mean about your influx in customers; I’ve been keeping track of your inventory and it does NOT seem to last very long! This summer, however, I do plan on purchasing my first Fortress property, so I’m sure I will talk to you soon. Take car, sir!

    -Jordan

  4. Chris 30. Aug, 2010 at 12:14 am #

    I am purchasing my first rental property this week, for 14000. Cash Sale. I would like to mortgage that one to pay for the next one or two and their rehab. I was wondering does your system work even if I want to hold on to these properties and not flip them? what should I do differently as owner of rentals to achieve the same goals? Thanks I really enjoyed the articles.

  5. Sean Terry 30. Aug, 2010 at 11:59 am #

    Hey Chris,

    I’m not sure I full understand the question. I sounds like your buying a rental property for $14K cash and you’d like to put a mortgage on that property, is that correct? Also could you clarify the the flipping strategy. Thanks Sean

  6. field runners hd 07. Aug, 2011 at 11:34 am #

    I like Your Article about How to Manage Your Growing Real Estate Business | Dealmakers Blog – Ramblings of a Real Estate Mogul Perfect just what I was looking for! .