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The Lazy Way To Invest In Real Estate

The Lazy Way To Invest In Real Estate

Upwards of 75 percent of independent rental property owners in the U.S. reportedly worked another job on top of being a landlord. This is a good website for real estate stats and many other business states. 

While it is not a problem even without having a system in place to do this for one single family house, one single family house will not get your rich. If you want to build true wealth with real estate you need way more units. Do you think you can handle 5, 10, 20, or 30 houses yourself?

If you are not used to handling much more than one then you are probably thinking there is no way and that is what is stopping you from building your wealth quickly. You must find a better way, enter the lazy way to invest in real estate. 

What is the lazy way to invest in real estate? It means to put systems in place so you can scale your real estate investment business. If you do not do this you will never develop the type of wealth that will allow you to take expensive vacations anytime you want, with who you want, for any duration you want. Let alone live the life you can only dream of right now. Your thinking houses, vehicles, time with family, how much you could give to charities, churches, the presents you can give at Christmas/birthdays, etc. etc.   

Consider the following lazy way to invest in real estate tips that bring property management tasks under three basic headings: organization, automation and outsourcing.

See how to run the numbers when buying real estate properties.

Organization Matters

One of the things that tends to overwhelm landlords is thinking about the rental properties as an extension of home ownership. Forget about that…do things the lazy way of investing in real estate.

By rethinking rentals in terms of a business, you will start to think about outsourcing as much as possible. Your main job as an investor is to invest in more real estate and make sure the assets are going up in value.

All of the following tasks can be outsourced by specialist and software:

  • Rental Advertising – real estate agent
  • Applicant Interviews – property management and/or real estate agent
  • Background Checks – property management and/or real estate agent
  • Legal Documents (leases) – property management and/or real estate agent
  • Maintenance and Repairs – property management or do this yourself. If the property has been fixed up to begin with this might only occur once a year if that.
  • Rent Collection and Bill Paying – property management or setup auto rent collection
  • Accounting – property management outsource to CPA

Automation Matters

Industries across the globe are moving to automation as a way to increase productivity and lower costs. Using automation is part of the lazy way to invest in real estate strategy. While fixing a burst pipe may not be a good candidate for automation, there are numerous tasks property owners undertake that no longer require valuable time.

  • Advertising: Considering setting up a process where an online advertisement is pre-written and posted when a lease expires.
  • Rental Payments: Consider setting up automatic withdrawal from tenant accounts or having them direct deposit.
  • Bill Payment: Consider setting up auto pay for every possible facet of the property, including utilities, taxes, insurance, mortgage and others.
  • Maintenance and Repair: Consider setting up an online form for tenants to fill out that provides real-time notification.
  • These and other tools can streamline the amount of time required to manage a rental property without incurring significant expense.

Outsourcing Matters

People who work regular jobs and also manage rental properties are entrepreneurs by nature. They usually want to do things themselves. They have the mantra, if you want something to be done right do it yourself. That go-getter personality leads many to take on more tasks than there is time in the day and ultimately get burned, bogged slowed down, and fall short of expanding to new heights. That’s why outsourcing is so important.

Outsourcing things like accounting or legal services are no-brainers because they require specialized knowledge. But other tasks such as applications, background checks and maintenance may be good things to put on someone else’s plate as well.

As noted in the beginning of this article, if a business mindset were applied, many of these tasks would be assigned to a designated resource. Consider operating rental units in this fashion by running a cost analysis and outsourcing. Roll in the labor costs that make sense and start looking or your next property while your investment turns a profit month after month.

If you are looking for your next property as you always should be, see this article for a review of the top software for generating motivated seller lists and finding properties for pennies on the dollar.For more information on the lazy way to invest in real estate and building wealth in real estate keep up to date with the realestatewaypro.com newsletter.