The way you are scaling your real estate investing business could be killing your chances of success…
Beginning with the right strategy for scaling and growing your real estate investing business is critical if you want to build up any kind of momentum or manage to stay around. There are 3 factors which catch out a huge number of investors. Are you making these fatal mistakes?
Too Cheap
Many of those new to real estate investing aren’t kicking off with big budgets. Even if you were it is wise to be cautious with your capital and let profits pay for expansion. However, this doesn’t mean going too cheap on your online marketing and branding. If you are tempted to put up junk just to get something up, just don’t. Arguing that you will increase quality as you make money doesn’t work in this medium. You only have one chance at a first impression. It is far better to put up less but make it look and read great than to destroy your image before getting a chance to prove yourself.
Not Diversifying Marketing
You should absolutely have a plan to branch out and add new advertising channels for your real estate investing enterprise as you grow but it is also important not to throw all of your eggs in one basket right away either. It doesn’t matter how great your marketing is, if you are only using one medium you are asking for trouble. What happen if your mail campaign is messed up and lands on a holiday, what if there is an Internet ‘black out’, what if you put all of your money into one telemarketing list and it is complete junk?
Too Fast
It may be true that there are more great real estate investing deals out there today than you can handle and it can be very tempting to charge full speed ahead to lock down as many as possible. However, it is essential to limit the amount of overhead you take on. Expanding too fast can weigh you down with debt and mean a lot of work going into management versus flipping houses. Outsourcing can be a great move and help real estate investing scale in an affordable way though always remember to distinguish between real bottom line profits and quantity. They don’t always go hand in hand.
