When you run a business, you put management practices in place to ensure smooth operation, so why should it be any different when it comes to property investing?
If you have an established property portfolio, it is without a doubt a business and you my friend, are the CEO.
A property portfolio involves many of the same dynamics such as money, time, tasks, goals, deadlines, team members and so on.
To manage these elements of property investing on top of a part-time job or even full-time career, you’ll need to learn and master the art of delegation.
Now it must be said that no one, in your eyes, will ever do a job as good as you – but delegating your tasks can help you find someone that comes pretty darn close.
Behind every successful investor is an ‘A-team’ built from scratch, so before we get into the art of delegation, you need to know WHO to delegate to.
The dynamics of your property investment A-team
Throughout your property investment journey, you will come into contact with many professionals who are needed in order to make a successful purchase, and to maintain the value of the property after purchase.
These professionals include:Investment finance experts - Structuring and reviewing your loans and loan structures helps to ensure you are maximising your cash-flow and that you remain market ready should a great investment opportunity cross your path. Property investment coaches/mentors/buyer’s agent service – Knowledge + action = results. Leverage your time and knowledge, learn what to look out for and also stay in the loop to get up to date property investment opportunities. Property solicitors – who practice within the state where you are purchasing. Property tax experts – to ensure you buy properties, and structure your portfolio, in the maximum tax effective manner for your personal circumstances. Property managers – Manage your managers well and you will maximise the performance of your properties. Tradesmen – Who work within your property strategies and won’t overcapitalise on any necessary work to be undertaken.
When you first start investing in property it can become a case of trial and error to see who is switched on in their industry, who can deliver results and ultimately, who you can trust.
Building a successful A-team all comes down to making contacts and forging relationships with people in these industries, and after time, selecting one key player from each industry who you can depend on.
The art of delegation
Success is achieved faster if you build a team around you who are as committed to accomplishing your goals as you are, so finding some synergy between yourself and individuals from the industries mentioned above is critical to your success.
Once you have your A-team together it’s time to learn, or master, the art of delegation.
Let’s use your buyer’s agent as an example: while you are equipped with enough knowledge and skill to find an investment property in a good location with high returns, it takes a good chunk out of your week, so delegating this task to them makes perfect sense.
Or say your property manager: you didn’t buy an investment property to become a landlord, you bought an investment property to become a property investor, so having a professional manage your property also makes perfect sense.
Now, if they both make perfect sense, wouldn’t everyone be delegating everything to everyone?
There’s a reason why so many know about management and delegation yet only few master it.
Delegation requires patience and the power to resist micromanagement – NOTHING will drain your ‘delegation battery’ faster than micro-management.
Still using the buyer’s agent example, a good guideline for delegation is to use the SMARTER checklist to ensure the task is:Specific – ensure your buyer’s agent knows what is required of them Measurable – define how you will measure their success Agreed – make sure both parties are on board, especially if more than one is involved Realistic – “find me a property with a rental yield of 42 per cent”… not going to happen Time-framed – has a deadline been set? Ethical – are you asking them to do something you personally wouldn’t do? Recorded – put it on paper.
A-team + delegation = success
It is not until after two or three purchases that you really start to see the benefits of having an A-team: all persons involved will be accustomed to your investment process. They know you, they know your strategy and they know your expectations. Your investment process will become more refined after each purchase, making the next investment experience more seamless than the last.
Nurturing your A-team and getting your investment process down pat will strike out the doubts associated with your team players’ competence, and enable you to focus on the task at hand – growing your portfolio
The only way to advance in any business is to keep delegating.
Invest with confidence and build your wealth by making us a part of your A-team. Call We Find Houses today on 1800 600 890 to book your free, no-obligation consultation.