Letting Go and Letting Others: Outsourcing Frees You to Focus On the Business of Investing
Outsourcing the necessary though mundane activities of your real estate investment business will leave you free to focus on profit building activities that will mean success.
You’re an investor. It’s your job to spot a deal and turn a profit. You know the market, you know your strengths, and you have a good sense of when to move on a project.
But are you investing wisely in your own business?
You may be an army of one, but that doesn’t mean you have to go it alone. You can invest in yourself by hiring competent people to help you with your day-to-day business needs.
It’s easy to crunch numbers and decide that doing everything on your own is the wiser choice. You may even convince yourself that you’re paying your dues as a novice, or that you’re seasoned enough to have everything under control. Or you may just have trouble trusting others to do a good job. But that’s short-term thinking, and short-term thinking cost you money in the long term.
There are two things you have to consider when deciding whether to hire someone to assist you in your real estate investment business.
#1: How valuable is your time?
You have to put something into your business to make it successful, and you only have two choices. You can put in time, or you can put in money. It might feel like a smart move to always put in the hours instead of the cash, but is it? Beyond the fact that you’d probably like to have more time to spend with your family, or perhaps pursue a hobby at some point, the old cliché still holds true: in the end, time is money.
You have certain strengths, and all of your time should be used in ways that capitalize on those strengths. If you’re great at closing deals, you should be out there closing more deals, not holed up in your office handling paperwork.
#2: Are you really doing everything as well as you think you are?
Investing is fast-paced and time-consuming, and there are a thousand little details to iron out. It’s a lot for one person, no matter how thorough and detail-oriented you might be. You may feel like you’re holding it all together, but are you? Are you just barely managing, when you could be sailing through? Hiring others to do the jobs you find difficult, tedious or time-consuming can make all the difference. There are lots of truly competent people looking for extra work. Someone out there will be happy to answer your phone calls, write your newsletters, keep track of your client list, write your blog, handle your social media and digital marketing, or file your paperwork.
Hiring someone isn’t as difficult as you might think. You can avoid potentially costly and complicated tax issues by hiring independent contractors on an as-needed basis to handle everything from website maintenance, to marketing, to copywriting, to data entry.
You should be careful about who you hire, as the wrong people can leave you in the same situation you’re in now, or worse. But if you hold out for the right people, and invest the time in training them (it’s all about smart investments!) you can create a well-oiled machine that will serve you well for the future.