I recently taught a course on investing in real estate from out of state. I had the pleasure of teaching over 30 students. Of those students I still continue to coach and consult with them helping them build their out of state real estate investing portfolio.
One of the key topics I address is building a team. You can do a lot of things on your own but you can do more with a team. As Grant Cardone likes to say, get beyond the one man show. Nothing significant has ever been done by one person acting alone.
This month we had a hurdle that we had to get through. That hurdle was filling a vacant unit. The unit went vacant in November and is just now getting filled. It took a while to get filled because we were trying to do it all by our self.
When we first bought this property last year we filled it in no time. We put it on the market and had tenants for days. At that time we only had one property so this was our only focus. This year we have five properties and one is currently being rehabbed. Our plate looks a lot different therefore our focus is different.
Since our portfolio is expanding we had to expand the team. I decided to work with a broker to get the unit filled. At first we tried to do it the old way which was to list the property on zillow, redfin etc, field calls and then have our assistant work an open house.
The assistant ended up wanting to charge $100 a day just to sit at the house so we scrapped that idea. We were doing all the work and she was getting paid to sit. No thanks.
The broker listed the house, fielded the leads, showed the property by appointment (which is more effective than the open house method), he ran the application and is now going to meet the tenant at the unit to get them keys and moved in. We killed eight birds with one stone.
The fee for all of this was one half the first months rent but it was well worth it. This unit is renting for $725, which is up $25 from what we were renting it for last year.
So the key to this is that you have to hire experts. In the beginning when cash is low you will be tempted to self manage and find your own tenants. This is okay. You might not have a choice. Don’t NOT start because you can’t afford the team but also don’t get caught up in trying to do it all yourself forever. You must work your way out of your business so you can work on and scale your business.
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Thanks for reading!
Be great, invest well,