investing in real estate successfullyEverything has a system. Think about how many systems go into getting a space shuttle up and off the ground! Some businesses have clearly defined systems (think: sharp looking skyscrapers that jet up into the sky) while some businesses have more of a vernacular approach (think: old farmhouses with random additions here and there). In fact, everything we do or achieve in life happens by way of a system. Some systems are more effective than others; some systems (like throwing our dirty clothes on the floor or procrastinating on our taxes to avoid stress) hamper our growth.

A system, defined, is a “set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem,”.What systems do you use in your life – in your work – in your investment process? Today’s post focuses on how refining your system and approach to investment can maximize your profit margin – and who doesn’t want to do that? Cheers!

Define Your Real Estate Investing Goals (Short-term and Long-term)

Before you can establish methods and procedures to achieve your goals, you need to know what your goals are. This is key as, after all, you can’t map out a course to a destination if you don’t know which destination you want to get to, right?  Hipster recommends you take some time to envision what you want to achieve in real estate investment. What do you want your portfolio to look like next week? Next month? In six months? In six years? Ok – now that you’ve got a handle on that, thing bigger. What do you want your portfolio to bring to your life in 20 years? In 30 years? Do you want to buy retirement property in Costa Rica? Establish a trust for your children? Sit down and hammer out your goals: your future will thank you.

Analyze Which Direction Will Best Take You Toward Your Goals

Now that you know what your destination is on this thrilling train ride call investing, you’ve got to map out your course for getting there and hitting the goals you’ve defined. You’ve probably got a lot of options – you can run, walk, bike or grab a taxi. For investing, your options look more like flipping, syndication, buy and hold, triple net, out-of-state and turnkey (or some combination thereof). What is the best course for YOU to take to meet your investing goals? To figure it out, reach out and ask other investors, mentors, family and friends. What will work best for your financial situation, lifestyle and personality?

Create a System and Employ It

Once you’ve got your goals hammered out and your course nailed down, it’s time to create your system and employ it (so you can enjoy it).  If you know syndication is your thing, find a way to do it easily. For example, new opportunities exist for crowd-funding syndication with web platforms such as RealtyShares and Realty Mogul. If syndication is way too much to take on, maybe getting involved in turnkey investing, and all of the ease of use that comes with it, is more your speed. If so, look for a way to invest in turn-key that works for you: services such as Hipster’s can help you do it with minimal stress. What about flipping? If you’ve decided that’s your best bet, look for mentors who can show you the ropes and help you craft a system that minimizes your risk and maximizes your return.

The Key Takeaway:
Real estate investing, like everything in business and life, requires systems. The better your system, the better your results. To yield a great ROI, you’ve got to invest your time and energy into paving clear paths to success.

Comments
  • Brian Anderson
    Reply

    I am in the process of purchasing my 1st rental. I have $60,000 cash, am starting a job making $240k+ a yr and looking to figure out how to best invest my money over the next decade. I am definitely a “saver” and think I could manage 100k in savings a year. I am wondering about financing options because I know once you get to 5 investment properties, the game changes. Also I will be co-owning a psychiatric practice in about 18 months which will increase my income another 80 to 100k. Basically I will have a lot of cash flow in the next year or two. I am wondering if I should use the rental income to buy houses faster or reinvest it to pay down the mortgages? Also, what is the best way to buy properties after you reach 5? Thanks for any input!

    • Ali
      Reply

      Hi Brian, good questions. I’m a huge fan of leveraging, although a lot of people aren’t, so I personally would reinvest the money into more properties versus paying down mortgages. That is personal preference though of course, so do what you feel comfortable. If you qualify for a mortgage, you can actually get 10 of those. After 4 the requirements get a little more strict but barely by much so you should be fine. A lot of the properties we work with offer 50% private financing too so that would be an option once you are out of mortgages. Hope that helps!

  • Deb Cleveland
    Reply

    Ali, We have a mutual friend. Carla Chrzan just I.M. me your contact information.

    Would love to connect and talk about our one of our mutually favorite subjects! REAL ESTATE

    Let see if there is a time this or next week to talk. So great to find another women who is responsibly investing – nice!

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