How Do You Foresee Your Real Estate Career?
It’s very important to make sure you know what you want out of your real estate business and career. Some real estate investors prefer to do a small amount of very profitable transactions while others want to grow a large real estate company. There is not a right or wrong preference, but you do need to choose what is best for you. There are pros and cons of both, it just depends on your personality and what you see for your future.
As real estate investors, each deal can be extremely profitable if you look at the bottom line and know your numbers. We know a lot of real estate investors that make an extremely good full-time income out of doing just a few deals a year. Some do one or two deals a year while others do up to 20 deals per year. These one-man operations do everything themselves or have some part time help. They are deal guys and love the real estate transaction and they are content being a solo operation. They are happy with where they are.
On the other end, there are a lot of real estate investors that want to run a full-on company and do dozens of deals per month and hundreds of deals a year. When you get into that, all of a sudden you go from being a deal guy into actually being involved in hiring and managing employees, creating systems, marketing, accounting, and many other non-deal specific projects.
When we started our business, we were out there chasing deals, answering phones, doing the bookkeeping ourselves—we did it all. As we grew, we realized that we were hiring employees, managing employees, and growing the company. Although we understood that the actual deal was the most important thing that we made our money on, we assigned particular tasks and projects to employees or virtual assistants while we concentrated on the growth of the company. We recognized the highest and best use of our personal time and devoted it to those projects and tasks.
It’s extremely important to make sure you understand your strengths, weaknesses and what you want to achieve. Do you want to just do a few deals a year or do you want to grow and manage a large real estate portfolio? Ask yourself these questions and figure out what’s best for you. Just keep in mind your monetary goals for each which is another topic we can discuss soon.