Everything 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.