Mike Hambright is a real estate investor, mentor, and coach, and founder of FlipNerd.com and the Investor fuel Thought leader.
Take a moment and look back at your first job. For most of us it was the minimum wage, or close to the minimum wage, and we worked our bums off and were proud of the paycheck we brought home. Over time, as we gained experience and skills, our worth increased and our time was worth more.
As real estate investors, it’s not uncommon for us to do everything in the industry first. We take care of the marketing, the scheduling, the follow-up, the administrative work and much more. We do it because there is a need when we start.
Let’s try an exercise: take a piece of paper and write down every task that you can think of that you can do.
Now set an hourly rate for each of these tasks. Some tasks are likely to be $ 10 an hour worth of jobs, while others can earn your business thousands and thousands of dollars.
As you go from a solo preneur to a real business owner with a team, you need to consider what jobs you are doing and whether you are spending your time on the high quality tasks that really run the needle for your business.
When you start hiring, it’s important to consider hiring for jobs that you can afford, do the tasks that you don’t like, and that divert you from higher-value tasks. This can initially be an assistant job that begins part-time and then leads to a full-time position with opportunities for advancement within the company.
Many real estate investors find it difficult to step back from the acquisition role because they enjoy the job and it’s a crucial part of the pie. A bad acquisition manager can cost you tens of thousands of dollars if they don’t buy properly and fail to develop relationships with the sellers. But once you break that barrier and hire a few acquisition managers and train them to buy within your criteria and core values, you can really scale your business and make it a machine because you are not in the day-to-day roles as well.
Now ask yourself what your time is really worth. Look over your day and work on removing distractions that aren’t worth your time. It’s easy for us to get dragged into subordinate tasks during the work day. Not that I need to mention it, but again, there is a benefit in reducing the time we spend on social media.
Over time, adjusting your schedule to focus on the valuable tasks will free your day of time wasters that are hindering your true potential and that of your business. It takes discipline and a great team that share the same core values as you to make this work.
You will see the effects of your small steps if you get it right. Once your only focus is working “on” the business rather than working “in” the business, you will be able to refine your team’s processes and scale them up much more easily.
Think about why you got into the real estate business. I bet it wasn’t that you can work 80 hours a week and never live.
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