6 Strategies To Keep You From Asking What’s Next
“Now What” syndrome is one of the biggest challenges facing newer real estate investors. So how can it become overcome?
What Do I Do Now?
One of the biggest issues plaguing new real estate investors is having to figure out what to do next. Surf any online real estate forum for a few minutes and you’ll find plenty of “now what?” or “what do I do next?” scenarios.
Investors find a property they like, and aren’t sure what to do next. They get an offer accepted, and then don’t know what to do next. They close on a home, and then aren’t sure what they should do. They finish rehabbing, and then don’t know what to do. Or later on; the market changes and they don’t know what to do with their business. Each time these questions have to be asked means the process is stalling, income is stalling, holding costs are piling on, opportunities are lost, and profit potential plunges.
So how can these stumbling blocks be minimized? How can real estate investors get on the fast track? How can they streamline the process and maximize profit?
- Real Estate Training & Coaching: Those that lack a grasp of the basic mechanics of buying, selling, and renting real estate haven’t invested in their education. If you don’t own a home yet, buying one can be a great starting point. It can provide great insight and experience into the process. It isn’t necessary, but it is helpful. There are plenty of real estate education resources. There are books, CDs, videos, classes, local workshops, university degrees, online courses, and home study courses. The lineup can be confusing. What is most important is finding a comprehensive resource that will take you from start to finish. While some courses are certainly better than others, every penny invested in education will pay off many times over. Real estate and business coaching is a great option too.
- Have a System: There are many stages between starting and ending a deal in the real estate industry. This can get tricky, even for the experienced investor. The chances of error or overlooking important items only increases with volume. The only way to beat this, and to maximize efficiency, is to have a system in place. Clear checklists help ensure everything runs smoothly. A system ensures nothing is missed, deals don’t stall, and income keeps coming in. There are many ways to create systems. Microsoft Excel, paper checklists, project management software, automation software, and proprietary systems from various real estate courses. Don’t dive in without one.
- Have a Bigger Plan: Don’t get stuck figuring out what to do next year, or in five years from now. Have annual plans, a five year plan, a ten year plan, and a hundred year vision. Think big and long.
- Have a Backup Plan: Markets change, financing changes, the players change, and consumer behavior changes. You can’t control all of these factors. However, you can be prepared for them. You can control how much they can impact you, your real estate business, and your income. Have a plan B, and a plan C. Create multiple income streams, and know how you will navigate certain challenges before they come up. Don’t wait until interest rates go up 7% to figure out how you’ll still make money then.
- Use Partners: Leveraging partners is a great way to forge ahead in real estate investing. If you don’t have time to study as much as you know you need to, or scale slowly, then use partners. Perhaps you have cash to invest, but aren’t sure about all the mechanics. Maybe you have access to deals, but aren’t sure how to finance and close them. An experienced partner could lend their knowledge and time, or whatever you are missing. This will keep things moving, and reduce risk. You can always do your own deals once you’ve done a few together with a partner.
- Turnkey Real Estate Investing: Turnkey real estate investing is a great way to leverage systems and the experience of others. It’s all done for you. Just invest and collect the rewards.