Scaling your business

Scaling your business

Member since 2019 · 114 posts · 111 votes

So I have been investing in real estate for about 18 months now, and as per my business model and aggressive growth structure I have now five properties under my belt--totaling 13 units. As such, the time has come to where I need to start seriously thinking about how I'm going to scale my real estate investing business.

So how did you guys do it? What mistakes did you make, what good choices did you make? Generally, how did you go about it? What I'm thinking about right now are:

1. Get an LLC started -- how did you guys do it?

2. Scale my property management partner's company.

3. How to manage all the different tenants and their leases -- account manager, property manager, etc? How long can I manage them myself before I get swamped?

4. Partnering with the right people.

5. Advertising and networking.

6. Scaling my lead finding system.

So yea, what do you guys think? How are you scaling? How did you scale? How are you thinking you're going to scale? I'm looking forward to your thoughts.

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Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
6y

Did you go about buying all of those properties under your own name? Are all the leases in your personal name as well?

1st thing... get a lawyer, create an LLC, and transfer those properties and leases into your LLC's name. Currently you have a lot of risk sitting right on your personal head.

Just my 2 cents. 

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  • Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
    6y

    Did you go about buying all of those properties under your own name? Are all the leases in your personal name as well?

    1st thing... get a lawyer, create an LLC, and transfer those properties and leases into your LLC's name. Currently you have a lot of risk sitting right on your personal head.

    Just my 2 cents. 

  • Member since 2019 · 114 posts · 111 votes
    6y

    Thank you Jon Reed. I'll work through that. So I take it there are many lawyers that specialize in creating LLCs and carrying out this process then?

  • Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
    6y

    Yep! Just find a business focused lawyer and shop around a bit. Some of them will ask for $3k to set up an LLC while others will do it for $500.

  • Attorney · Slidell, LA · Member since 2016 · 322 posts · 179 votes
    6y

    The prices can vary widely on LLC formation, but that's often the difference between someone who is filling in a form, and someone who is creating something that will actually protect you. With your portfolio and growth, you'll want someone who understands real estate investing and asset protection, which can be very different than other types of businesses.

    As for points 2-6, the short answer is be ready to hire somebody. 

  • Member since 2019 · 114 posts · 111 votes
    6y

    @Sean Morrison Definitely. I need to start going to the network events more often for my local area. I already have individuals employed, but not in a well-built system yet. They're just part-time contractors and managers and whatnot.

  • Member since 2019 · 18 posts · 7 votes
    5y

    Hi Payton, found your thread as I am considering and thinking through similar things for my goal-setting this year. I'm curious what you decided to do and what you learned! Thanks! 

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