As an investor, you are directly in control of what you do, how you do it and ultimately how much you make. There is no boss telling you when you have to start working. Even though you work largely by yourself, the best investors know that they need the help of others to be successful. Unbeknownst to the rest, for one reason or another, is the importance of running an efficient real estate team. That said, it is critical to trust the team you hired. Remember, you hired them for a reason. If you did your job correctly, your employees will make you proud. While you may be able to do every task associated with your business, what are you giving up to do so? If you learn to let go and allocate tasks to others, your business will be much better for it. Don’t micromanage your business and your bottom line will definitely see an improvement.
The biggest reason business owners do everything themselves is because they want to control everything they possibly can. They feel that they can do things better than anyone else. And after all, it is their business. They are accountable more than anyone else. So while some people think they are helping their business by doing everything, they may be hindering progress. In refusing to allocate tasks, valuable time is wasted. Whether you are stuffing envelopes or following up on old leads, there are only so many hours in a day. If you decide to do everything yourself, you will have to give something up that could yield much greater return.
There are many reasons why investors don’t reach out for help. The most common reason is that they don’t have any extra money to pay someone for doing tasks they can do themselves. Again, this may be true, but getting help doesn’t mean you are hiring a full-time assistant. There are numerous websites that you can find inexpensive help. If you are starting a direct mailing campaign, the process of folding your letter, stuffing envelopes, writing out the address and putting on a stamp can take much longer than you anticipated. Of course you can do it, but would it make more sense to hire someone for a few hours rather than doing it yourself? If you have other deals in your pipeline or other marketing ideas you want to tackle, the answer is a resounding yes.
Along the same lines of not wanting to spend money, many investors look at doing this work as a way to save money. While you may not pay yourself, you do need to consider the task at hand. You may be able to paint a room, but is it going to be sloppy and need to be done again next year? With every task in your business, you need to look at if someone else can do it as good, or better, than you can do it. Most things, from cleaning your rental property to cutting the grass, can be done independently, but once you cross the line into areas that you are not familiar with, you should delegate. Tackling these projects will not save you money. In fact, they will end up costing you much more. If you have a clogged toilet you may be able to snake the line, but are you putting a temporary band aid on the problem and making it worse? If you have issues with accounting and money management, are you better served using an accountant? If the task will cost you more time, money or headache down the road, you should allocate it to someone else.
It would seem logical that you don’t need help until you have a few deals under your belt. However, in reality, the opposite is usually true. Once you have established yourself, you know your way around the business and have contacts you can reach out to when you need them. When you are just starting out, you can feel overwhelmed and not know where to turn. If you haven’t closed a deal yet, and feel you are wasting money hiring someone, you couldn’t be more wrong. Between setting up a buyers list, mailing postcards, placing bandit signs, knocking on doors and following up with new leads, there is a lot going on in your first few months. Instead of starting and stopping tasks as you go, you should hire someone to do the grunt tasks that you may not be as strong at. If you hire someone for a few hours a week, you are spending less than what you might for coffee or one big lunch. If you pay someone to do tasks that you would not have done yourself, you are not wasting money at all. In fact, this has to be considered money well spent.
Even if you have an established business, there is a tendency to monitor your contractor, property manager or accountant. The time you spend reviewing other peoples work could be hours every week. Instead of wasting time looking over their shoulder, spend more time in finding the right people. If you have the right people, you should let them work and do whatever it is you do best. There are only so many hours in a day. How you choose to spend them makes all the difference in the world. Learning to let go and let people around you work may be difficult, but it is one of the keys to growing a successful business.