The Importance of Time Management in Real Estate Investing

There are many real estate investing professionals out there that give very helpful advice in solving problems for investors from the beginners to the experienced. Conferences and webinars held by organizations such as National Tax Lien Association are great ways to hear advice from experts in their fields. But just like there are true experts with sound advice, there are also sources from which advice is not as legitimate. Protect your investment strategies and make sure that where you obtain guidance is an accredited source before following it.

After reading about many of the most widely believed myths in the real estate world, a few stuck out as the most common and harmful. One of these common myths that cause investors to give up too early is the belief that investing in real estate is a monstrous responsibility that will drain all of your time. While it is true that it requires dedication and perseverance in order to be successful, if you manage your time right then every second of every day does not have to be sucked up by your investments. One of the best pieces of advice that is given by seasoned investors for time management is to have a clear business plan and goals before getting started. Because each type of real estate has its own set of risks and resources needed, decide what kind you want to invest in so that you may prepare and stay focused. Do you prefer wholesale or Fix and flip? Will you invest in Commercial or Residential real estate? Have all your finances lined up so there are no surprises along the way. In this fast-paced field there is no time for miscalculations on budgets.

So many investors are drained of time and energy because they try to do everything themselves to save money. No one can be a specialist at everything because we are only human. This is why it is important to have a solid team behind you made up of essential players such as a financial partner, a real estate agent, an attorney and a trusted contractor for repairs and maintenance. Andy McFarland, a successful wholesale investor from www.iloverealestatestories.com, gave some great advice on a podcast interview for www.flipjl.com. He suggested hiring a project manager to oversee your projects because managing people alone is a full time job. He explained how coordinating people is a difficult task so having someone with the ability to do that for you and do it on time and within budget is a great resource for your investments. There are sites such as www.Zillow.com, www.angieslist.com, and organizations such as the National Association of the Remodeling Industry that can recommend certified contractors and project managers that fit your criteria and budget.

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As your portfolio grows, so do the responsibilities. The little things start to add up over time and managing the details can get very cumbersome. In the same podcast as mentioned above, Andy told the story of how he slowly brought people on board to help him with tasks. He explained how simply hiring an assistant to answer phone calls alone freed up an immense amount of time and created less stress for him to focus on bigger tasks. Search for personal assistants through friends and family or sites such as www.care.com and www.greataupair.com. You will be surprised how much time those menial tasks actually steal from your day.

Real estate investing does not have to take over your life and drain all your time. There are many time management solutions that can be used to simplify your investments making them quite manageable. It is more than possible to have an abundance of success in real estate if you have a set game plan to focus on and the right partners that have your back along the way. Obviously the recommendations here in may well increase the overall costs of investing, and therefore reduce profit margins, but being sure of a small margin, rather than running the risk of a high margin deteriorating to nothing is the secret to successful real estate investment.

May 26, 2015

Posted In: Investing


The Death of Live Auctions

Technology has a way of simplifying life in the most glorious ways, but doesn’t it feel like sometimes character is lost in exchange for efficiency?

From the late 90’s into the mid 2000’s, there has been a vast shift from counties holding live, in-person auctions toward online bidding auctions through the help of various technology providers such as Grant Street, RealAuction.com and Bid4assets. Not all counties are online yet, but the rate of change suggests that someday soon they very well may be.

There are many reasons that online bidding is more efficient and cost-effective for the clerks. For the bidder it has some helpful advantages as well. For example, since the auctions are online, the bidder’s ability to use the internet’s resources during the auction are extremely helpful in conducting due diligence allowing one person the ability to bid on multiple properties at once. Holding auctions online also eliminates some forms of auction fraud and collusion that may happen during live auctions. The online auctions have proven helpful in a time when county budgets are under pressure.

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While there are obvious advantages to online bidding, (like the ability to bid in your pajamas while eating a bowl of cheerios!!), some seasoned investors can argue the downfalls. For one, the online auctions have high volumes of bidders per auction making the chances of winning a property that an investor spent weeks researching very slim. Elimination of live auctions also cuts back chances to network and meet fellow investors. To many investors that used to regularly attend these events, auctions were fun and exciting. Sandra is one such professional Tax deed investor who runs a Tax Deed Investors club in Florida. One of the exciting things that she does with her group is go on what they call “auction field trips” where they travel around to live auctions in big tour buses. In one of her recent posts to her club’s public Facebook page, www.facebook.com/QueenOfTaxDeeds, she told a thrilling story about the fun that her group had at a Broward live auction but at the end of the post she expressed her club’s disgruntlement with the switch to online bidding. She wrote, “Bad news is the Broward sale is going online in June 2015 ☹ the whole room gave a collected moan.”

The switch to online bidding does solve many problems that live auctions possess. However, at the same time it is spoiling traditions that many investors believe in such as networking with other investors, professional development and weeding out the serious investors from the not so. There are surly others out there like Sandra who are disappointed in the switch to online.

May 8, 2015

Posted In: Auctions, Investing