There’s a difference between those who want to invest in real estate passively and those who want to be real estate entrepreneurs. Learn the steps that create the difference.
Dane and Lauren had been in the real estate game for eight years by the time they came to us. The couple already invested in four properties and had dreams of becoming true real estate entrepreneurs.
But they found themselves stuck.
The portfolio wasn’t performing as well as they wanted. Plus, they had plans to move to Canada within the next couple of years, which meant time was a factor.
The couple wanted to increase their net worth while generating a reliable residual income from their property in the shortest time possible.
With our help, they found a property that offered a 7.4% yield from the moment of purchase. And what’s more, it offered the potential for building a granny flat, which would ensure “cash cow” status for many more years.
That’s the sort of property that a real estate entrepreneur buys.
To achieve similar success, you need to become a real estate entrepreneur in your own right. And following these 10 steps is a critical component for that to happen.
Step #1 – Create a Mission Statement
Here’s the thing…
We don’t know many property investors who have a mission statement!
Why?
It’s not something that we’re taught to create.
But if you look at any other business, you’ll see a ton of talking about missions. So if you want to be a real estate entrepreneur, you’ve got to have a mission statement. as this explains who you are and why you’re here.
Take Walmart as an example.
They have a simple mission statement:
Save people money so they can live better.
In that short sentence, we see exactly what Walmart is all about.
Create something similar for yourself as an investor so you always have a direction.
Step #2 – Establish Your Vision
If we’re talking about having a business mission, the conversation about vision is never too far behind.
This is all about getting clear on where you’re going. It’s about creating a crystal clear vision of the future that you want to create through your investing.
Your vision could be anything – from owning a Porsche through to being in a position to fund causes that you care about. What’s important is that you have it so you know what you’re shooting for.
If you can’t see that future, it’s incredibly hard to work towards it.
Step #3 – Create Your Principles and Values
These are the rules of the game that you’re going to play by. Your principles and values provide a guideline for how you’ll do business and the actions you’ll take to turn your vision into a reality.
These will differ depending on the person. Your principles and values may relate to integrity, charity, innovation, or any number of things. The key is that they define the “how” of your journey as a real estate entrepreneur.
Step #4 – Develop a Business Plan
Most business owners don’t have a business plan, even if their business doesn’t have anything to do with real estate.
Why?
Creating one seems like a daunting task. And in real estate, it’s even easier to fall into the trap of thinking that you don’t even need a business plan. You’re not running a business… Right?
That’s completely wrong!
If you don’t have a game plan, you won’t ever win the game. Your plan doesn’t have to be some 500-page behemoth full of charts and data. But you need to have a strategy to follow if you’re going to succeed.
Step #5 – Outline Your Objectives and Key Results
You must define what success means to you. What outcomes do you want to achieve? What are the key results you wish to create by following your business plan?
Knowing what success means to you allows you to identify the actions you need to take to make that success a reality.
And you must get specific at it.
Instead of saying you’re going to buy houses, say you’re going to buy two houses in 12 months. Track everything and you’ll get a better sense of where you are on your journey, and whether or not you are winning.
Step #6 – Build Your Team
When we talk about building a team, we’re not necessarily saying you have to go out and hire people.
But at the same time, you need other people to help you to invest in real estate.
Your team will include lawyers, accountants, buyer’s agents, and anybody else who can facilitate your ability to buy properties.
Step #7 – Become a Leader
This is another step that many investors don’t believe they need to take. But if you’re going to build a team, you need to have what it takes to lead that team.
This doesn’t mean you have to become an extrovert who takes over a room if that isn’t who you are. It just means you have the courage to hold yourself accountable and take responsibility for the strategy you create.
More importantly, it means being somebody that others can trust to lead them in the right direction, be they your team or your family.
Step #8 – Know How to Communicate Your Message
Marketing is a key component of any business’ success. And to market effectively, you’ve got to communicate your expertise in a way that can serve whoever you’re trying to serve.
Why is this so important in real estate?
It’s all about opportunities.
We have more opportunities presented to us because we communicate a clear message. For example, real estate agents come to us with deals because they know what we’re looking for and what we do.
Get clear on your message and share it with as many people as possible.
Step #9 – Know How You’ll Innovate
In real estate, innovation isn’t about creating new products or inventing anything.
It’s about adaptability. Your ability to pivot and adapt to whatever the market might throw at you.
But at the same time, you must understand that change for change’s sake isn’t a good thing. Innovating involves identifying the need to change and then executing a new strategy.
In short, come up with scenarios that might derail your current strategy. Think about what you could do to adapt to those scenarios if they occur.
That’s innovation in real estate.
Step #10 – Master Finance and Money Management
Finally, you must understand your financial position.
Why?
When you know your numbers, you stay in control. You’ll know exactly what you have at your disposal, which means you know what you need to do to execute.
Knowing your numbers means understanding what you have coming in and where it’s going.
Yes, this involves creating spreadsheets and tracking numbers.
It’s not fun…
But it is essential!
Become the Entrepreneur
The people who become true real estate entrepreneurs are the people who follow these steps.
Why?
They use these steps to develop a framework around their investing activity. And it’s that framework that allows them to accelerate their success.
If you want to go from being a casual investor to a real estate entrepreneur, jump back up to Step #1 and work your way down!
