As multifamily investors, it’s important to maintain a healthy momentum. Handling transactions and managing your properties are important in keeping everything together. That being said, you can get a lot of work done if you work towards increasing your productivity levels.
One thing’s for sure, people have this common misconception that real estate investors don’t require too much energy to earn a living.
The term “passive income” has taken on a profound meaning. A lot of people tend to say how supposedly easy it is to be a real estate investor. It’s as if the process is simple to understand: you spend money, you get it back plus profit.
How I wish the life of an investor is just as simple as that! Though I can earn a great deal of passive income from the multifamily properties I have acquired, I still need to undergo tedious processes that will surely drain me at the end of the day. What most people tend to ignore is the fact that there’s actually a lot to be done before closing the purchase of a multifamily property.
From securing the needed down payment for the purchase of a property down to conducting due diligence, these activities demand a large amount of time, effort, and patience in order to formally set up the business.
It’s for this reason that investors should focus on maintaining very high productivity levels in order to shorten the workflow. Let me share some valuable tips.
Use the 80/20 rule to increase productivity
You know you’re in the right track to success when the minimal effort you have exerted produces significant results. There are indeed a lot of people who are capable of doing such a feat. You might as well know how they managed to do it – only to realize its simplistic rationale.
According to the rule, 80 percent of effects should come from 20 percent of the work you put in. This enables you to focus on using effective time management and workflow planning to achieve a more efficient way to meet your goals. For this, action is everything. You will need to do whatever you can to accomplish as many objectives as possible.
Set a system for doing things
Having a background in engineering, I would like to describe myself as a “systems guy.” I am very fond of processes, especially if these allow me to move faster in completing both my short-term and long-term goals.
It’s a simple principle: Higher productivity is very much possible if you create an effective workflow, address bottlenecks, and determine better ways to resolve complex problems along the way.
It’s only a matter of organizing every aspect of your life. To start, you can start with the way you manage your schedules. You would want to focus on appointments that provide the most profitable results, so you need to label these as “priority meetings.”
When it comes down to organizing the documents you need for conducting due diligence and marketing your multifamily properties, you might as well keep hard and soft copies of your paperwork. For this, use Dropbox to share documents with your staff in real-time. One trick is to divide your documents into separate folders to make it easier for anyone to locate specific documents.
Allow room for constant improvement
You can’t be too sure if the strategy you’ll be using to increase your productivity will work out for the best. It’s also important to anticipate possible issues in your operations. However, it’s best to improve on these strategies rather than dumping them completely. Keep in mind that, most of the time, the problem isn’t the strategy itself, but the execution.
With that being said, you should focus more on the areas you need to improve. You need to track down certain components in your strategy that are slowing you down. From there, you can either stop or replace these components altogether.
I sincerely hope that these tips will help you improve your productivity as much as it did mine. We can also talk about these topics and more in the comments below.