Is this how the game of REI is played?

Question

Hi everyone!  I just recently came to the realization that to have true passive income or to  own your own time, you need to outsource as much work as possible in  your REI business.  I don't know if this is a topic that every REI  should know or if this is such a beginner/novice/newb realization, but  I'll be honest, I'm a beginner REI and I just want to tell the whole  world about this!

1)  Take out a piece of paper  or word document and just write everything that comes to mind, even the  little things.  Such as managing your properties, paying bills, doing  paperwork, talking with sellers, marketing, etc.  This list depends on  you!

2)  Like the saying from Kiyosaki's book,  Richdad Poordad, "I can't afford that, to how can I afford that?", you must think on how you can outsource every  single piece on your list.  Such as hiring a property manager to manage  our properties, hiring virtual assistants to talk to sellers who've  called the phone number on your direct mail, or hire wholesalers to find  good deals for you, etc.  What work gets outsourced will depend on you  as well!

Outsourcing work = automating your business

Automation is the product of outsourcing your work.

Automated business = business that runs on it's own

Automated business = you don't have to be there

Automated business = more time

Mind  you, there will be some things you can't outsource like checking in on  your systems or doing paperwork, but the fact is that you've outsourced so  much work that you don't have to work incredibly hard every single day  and to me, that's why me and so many other people are here.

I  don't ever want to lose this amazing mindset, so that's why I decided to  write on here.  Not only to reinforce this information but also to get  some insight from other perspectives.

What else am I missing guys?

Joe Villeneuve · Answer

What you just described is the Production Line.  Henry Ford could have built one car at a time, but when the production line was introduced, his auto company skyrocketed.  The Production Line is teamwork...on steroids.  It allows for an unlimited number of returns simply by repeating a successful process.

Account Closed · Answer

@Matt Motil

I agree with you on the managing aspect.  In it's logical extreme, you could outsource your managing too, but you would still end up with your manager updating you on the current events, resulting you having to make decisions and stuff anyway.  I'm perfectly fine with the reality though.

You'll probably slap me, but I was reading the 4 hour workweek a few weeks ago and I dropped it.  He kept talking about motivating topics, taking action, goal setting, etc, and at that point and where I'm at today, I already have those done.  It kept talking about similar topics and eventually I grew tired of it and dropped it.  I might pick it up again because people, like yourself, keep telling me about the virtual assistant material and it frustrates me that I didn't keep reading till the end.  Oh well, one of these days I'll pick it up again.

@Joe Villeneuve

So this amazing discovery for me is actually a practice that has been used since the 19th century?  Unlimited amount of returns?  It makes me feel like I've discovered some ancient martial art that can allow me to walk on water or something.  Probably ignorant to say, but I feel freaken powerful!

I also love how so many of my questions get answered by you Joe.  I don't have to look at your profile to see what your experience or background is because I can tell just from reading your posts here and there, that you know what you're talking about.  I feel very grateful that I can get your insight on REI topics, and I thank you for that.

Matt Motil · Answer

Good stuff! Glad you're excited, cause REI is exciting. There is a blog here and I'd encourage you to start one and post regularly. If you haven't read Tim Ferriss's book "The 4-Hour Workweek" you should give it a read. Very much along the lines of automating your business and making your income truly passive.

As for real estate investing, I don't know that it will ever truly be 100% passive, because even when you have someone else doing all of the tasks that need to be done, they still need to be managed. Even if you hired a manager, they would still need some oversight.