As real estate investors, we are bombarded with a metric ton of information each and every day. The amount of information out there to consume and digest is overwhelming at times.
That makes it difficult to discern what's truly at the heart of it all. What actually makes an impact on your investing career? What really makes a tangible impact on your success?
We've broken down three simple priority areas for every passive real estate investor. These are the things that actually matter. They deserve your time, energy, and attention. If you're not paying attention to these things, you're doing your financial future a huge disservice!
3 Priority Areas Every Passive Real Estate Investor Needs to Focus On
Priority #1: Your Service
Property Management & Customer Service
Property managers are the unsung heroes of passive real estate investment. Without them, there's zero chance of this thing working out at all! Your property managers ensure that everything runs smoothly day-to-day. They're the ones who collect rent, deal with tenant issues, call the shots on maintenance issues, handle disputes and complaints, and generally ensure that your property stays in tip-top condition and your tenants stay content.
A good property manager preserves your investment for the long-term: repairs are speedy and effective, maintenance issues are addressed, and the tenants chosen are the type that takes care of their rental home. They reduce tenant turnover by providing a great experience for your renters, too—ensuring that your passive income is maximized.
It's not enough to just have a property manager, it's about investing in a long-term partner who values what you value: excellent service, top-notch quality, attention to detail, and due diligence.
Priority #2: Your Systems
Part of your systems includes due diligence. For real estate investors, due diligence is crucial for success. It means you take the time to focus on the details. Due diligence is running the numbers when you get ready to buy a property. It's taking the care to have an inspection done and done right. It doesn't end with acquiring properties, either—it continues on into your day-to-day life. It's regularly checking in with your property manager and carefully budgeting and saving in your financial life.
Due diligence is ultimately about being mindful during every step of the investment process: no decision made without careful consideration.
Beyond due diligence, there's just being organized from the very beginning. So many investors skip this step, thinking they can worry about organizing later and focus on the “big stuff” first. Organizing is “big stuff!”
If you don’t organize from the very beginning, you’re bound to lose track of valuable information and documents, which leads to hassles and headaches at the worst and most inopportune times. When you need to broker a deal or do taxes, you’re going to be glad you had good organizational skills.
It’s not just about physical spaces, either. While filing cabinets and offices can look more like a mess, digital spaces can get just as cluttered. Don’t neglect to set up a good digital filing system and routinely clear out obsolete documents. Keep it tidy.
Priority #3: Your Growth
Real estate investors don’t get anywhere if they don’t grow. And you can’t grow if you don’t have a plan! Are your goals for the future clear? Do you have an action plan? You should have your short and long-term goals spelled out. That means setting goals for how many properties you want to acquire this year, how much revenue you want to be bringing in, or which new markets you want to crack. It means having a long-term savings goal in mind. Do you know where you want to be and who you want to be as a real estate investor?
And more importantly, have you decided how you’re going to get there? It’s all well and good to have ambitions, but ambitions without action are just dreams!
Part of growth often involves leveraging valuable connections. Not only can you lean on the services and avenues available through your business acquaintances, but you can lean on the knowledge and expertise of others. Making connections with other investors, mentors, and real estate professionals can be enriching in your journey as a real estate investor. Networking is key to your growth—don’t neglect it!
So much of what we learn in real estate investment is learned by experience. At the same time, we can’t rely on experience alone to teach us. Real estate investors should be taking every opportunity to learn more about the business. Are you reading, listening, and experiencing all that you can learn?
Take the opportunities you can to further your education—it will equip you to make better decisions for your financial future.