Systems to scale and momentum

[Tommy Feraco Jr]

When people talk about scaling and how to scale, the biggest topic that comes from that is creating systems. But many times actually teaching how to scale through a systematic approach once you have two or three properties under your belt is glazed over. I know systems may be different for everyone, but I am curious to know how those of you who have maybe ten to 100 properties; 1) created those systems 2) how those systems have changed as your portfolio has increased 3) how you run (or have someone else run) those properties.

I have closed on my second deal a couple months ago and while the rehab is going to take some time, money, and a lot of sweat, I’d really like to create more of an effective system to scale my portfolio.

Thank you all!

[Chris Seveney]

Quote from @Tommy Feraco Jr:

When people talk about scaling and how to scale, the biggest topic that comes from that is creating systems. But many times actually teaching how to scale through a systematic approach once you have two or three properties under your belt is glazed over. I know systems may be different for everyone, but I am curious to know how those of you who have maybe ten to 100 properties; 1) created those systems 2) how those systems have changed as your portfolio has increased 3) how you run (or have someone else run) those properties.

I have closed on my second deal a couple months ago and while the rehab is going to take some time, money, and a lot of sweat, I’d really like to create more of an effective system to scale my portfolio.

Thank you all!

 GREAT QUESTION. Scaling is an art and a science. The two biggest learning lessons I had when I scaled my business was 

1. Scaling takes time and money - meaning you will need to spend money prior to it reaping the benefits. 

2. Its never to late but the earlier you prepare, the better you are.

For example, we scaled our mortgage note business from 0-250 assets in under 4 years and now we just launched a $75M fund. During that time I was flying solo (mistake #1), I was a control freak trying to do it all, but when I found people who were a lot smarter than me in different aspects of the business (ie. raising money, better systems) your ability to scale increases significantly. We also invested heavily in software to manage our business - when I say heavy - I mean $25k+. At the time I did not need something so robust but knew that one day I would, and instead of trying to do it on cheaper systems or software or less expensive I said screw it and went for the software that eventually I would need. I am so glad I did as it took me several months to learn and understand that software which was easier to manage with a small portfolio.

Lastly, remember it takes time and to map it out. We followed a one page business plan in Gino Wickmans book traction that I had also used at a W2 job - whereby if you track your goals and objectives and use it as your roadmap, you stay on course. Too many people get off course. 

As you mentioned, people think differently so a system someone else uses may not be a system for you. Try out systems and have them let you use it for a month for free. Also ask around what people are using and its pros and cons.

hope this was helpful