Week 2: Building an investing strategy based on your current situation
In week two we use some of the techniques and exercises from week one to build or improve upon your current investing strategy. I live my life in a state of constant improvement. Whenever I think I can’t improve on something I either start something new or I realize I am being lazy and I really could improve things if I tried.
Goals of this module:
- Analyze your current strategy to see if there are places you can make improvements immediately.
- Taking the goals you created from module 1 and making them even better and more specific.
- Making sure you understand the fundamentals of real estate investing.
- Adding more investing facets to your current strategy.
- begin thinking of ways to delegate more and focus on the tasks you enjoy.
Looking at your current strategy
Thinking of always improving and getting better may be stressful to some. But remember that change is fun! If you can make things change for the better, all the time, life will be much more fun and exciting. My point is that while you may think your current strategy is awesome. You just need more money, more time or more deals. The fact is you can always improve strategies and do things better, you just have to have an open mind and be willing to accept change. This module is about reviewing your current strategy, making sure it makes sense and then making it better.
Task for this module is to right down your current investing strategy for the short-term (next year) and the long-term (next five or ten years). Send me your strategy. Here are some things to include and think about.
- How many deals are you planning to do?
- What is your current source of financing?
- Do you do the work yourself on repairs or do you use contractors? Do you have good contractors?
- How are you finding and buying your deals?
- What is your main goal? Flipping, rentals, wholesaling, a mix?
- Are you planning to change or increase the number of flips, rentals, or wholesale deals you do?
- How are you planning to increase the amount of deals you do?
- What does a typical rental, flip or wholesale deal look like for you? Cash flow, profits, repairs, down payments, etc.
- Do you have partners or people who make decisions in you business? Do you like the current set up and is everyone clear on what happens given certain situations?
- What are your biggest roadblocks to increasing your business and doing more?
2. How can you improve your strategy?
Now that I have your strategy and see where your business is going. We are going back to the basics. Why? Because the basics are what win championships and many times we get ahead of ourselves trying to move ahead with something new when we can make bigger changes improving our processes we use now.
The following videos go over the basic investment principles used to make money with rentals, flips and wholesaling. Even if you don’t want to wholesale or flip, watch these videos. There may be a way you can implement these techniques into your business easily without making big changes. You also may be able to buy rentals better, buy flips better or improve other aspects of your current business. I think many of us limit ourselves by assuming there is nothing we can do better, when there are simple changes we can make that mean more money to us.
Here are articles on these investing strategies as well.
The next task for this module is to make a list of things you can do better in your current business. Here are some examples.
- Get better deals through MLS, wholesalers, etc.
- Get better financing so that you can make more per deal, use less of your own cash and buy more properties.
- Build a list of investors who may be willing to buy properties that don’t work for you or you are too busy for.
- Get your real estate license so that you can get better deals or possibly add another income source.
- Add staff to help you handle busy tasks or things you hate doing.
To end this module make a list of the things you like to do in your business. Do you like looking at houses, finding deals, networking, running the numbers, doing manual labor, managing people, or anything else? What is the most fun for you? Make a list of the things you love to do and write down a plan for how you can do more of what you love and less of what you dislike.