How Truly Successful Real Estate CEOs Retain Their Edge
Rapid success and seven figure incomes aren’t hard to come by in real estate. This is especially true for those that take a moment to invest in their real estate education, and get started with a good system. However, ego and easy money can also delude investors and cause them to sabotage their own success. Unfortunately, it can all be lost, even faster than it was gained. So how do successful CEOs stay on top?
Smart Money Management
Money management is one of the most important factors to consider when growing a sustainable business. It doesn’t take too many big or careless blunders to fold a company or deflate a portfolio. Cash flow is great, but high overhead may not be sustainable long term. Know how to balance spending, when to leverage and reach, and when to save. Have a solid budget, and stick to it.
Holding money in reserves isn’t very attractive to ambitious real estate investors. After all, they have many ways to put it to far better use than being loaned out by a bank and barely receiving enough in return to cover the junk fees being charged. Risking keeping it under the mattress isn’t a much more appealing alternative either. However, there are a virtually infinite number of factors which can require extra cash than expected. Closings costs, rehabbing costs, repairs, marketing costs, vacancies, and business interruptions due to natural disasters can all demand unexpected expenditures. Those that don’t have, or attempt to build up reserves, are essentially gambling.
While savvy real estate company CEOs have most likely removed themselves from the day-to-day equation, constant connectivity remains crucial. A good team ought to be able to handle most crises autonomously. However, with how much can be on the line in a given deal, ensuring constant connectivity is extremely important. It can also be far more challenging than many realize.
Smart connectivity also requires more thought and preparation than many realize. Relying on a single device is not sufficient, especially when traveling. Phones and tablets or laptops and desktops should always have a backup. The same goes for an internet connection. Are you really willing to bet your entire real estate business and portfolio on a single internet connection and internet provider? Do you have a backup? Do you know where the nearest two 24 hour Wi-Fi hotspots are? Are you sure you will be able to get online wherever you plan to travel? What about simple phone connection? Believe it or not, your phone carrier may not provide service all over the globe. In other cases, you may not want everyone to have access to your mobile or vacation home telephone number. So how about call forwarding and portable numbers?
By now, every real estate investor and company ought to be using cloud storage. There are many options that are available to choose from. All can be superior to paper when it comes to access, security, cost savings and productivity. Imagine losing all of your paper files with no back up due to something as simple as a storm or fire. Imagine the havoc it could hit your business and investment income with.
Have an Assistant, or be the Assistant
If property investors don’t have at least one assistant, they are effectively working as assistants. Most don’t get into real estate investing to earn assistant level paychecks, but that’s what the net hourly rate can wind up looking like. This isn’t just about income either. It’s a daily battle out there to land deals, attract and retain talent, and stay ahead of the competition. How can those stuck doing low level work expect to keep up with other industry CEOs and investors which devote their time only to high level deal making and developing strategy and plans for the future?
Real estate assistants no longer need to be expensive, and technology can go a long way to fueling automation and reducing labor costs further.
Focus & Feedback
A habit of success requires putting a system in place. This goes beyond daily revision of goals and visualization. Sometimes this can be difficult, even for the most intelligent investor and CEO. This is where the very top ranks of real estate leaders turn to coaches and other professionals for second opinions.
They don’t allow too many distractions, including apps and marketing noise to derail them. They know how to create their own personal, optimal working environments. They consciously develop habits, and routines which block out and avoid negativity.
How many of these practices have you integrated into your real estate business? Are you prioritizing the longevity and reaching the full potential of your business, or are you sacrificing it for immediate gratification, and short term goals? What you do now will determine where you will be in five, and ten years from now. Where do you want to be?