How to systemize your real estate business

Question

Last night I finally realized I've been failing in a big portion of my business, systemizing. From the wholesaling sector to the flipping. Although I've been successful my first year, I feel like I could have saved a lot more of my time, and money having systems in place. And it didn't hit me until I passed by a renovation of a home I wholesaled to Memphis Invest. It wasn't anything out of he ordinary I seen, I've wholesale them over two dozen properties this year and I love to follow up with the properties until they are resold. Yesterday evening I passed by our recent deal and noticed their was a uniform system they had in place, from the areas they buy, the colors they paint their homes, and even how they market it for tenants.

So I would like to know what are some ways I can systemize my wholesale business, as well the flipping side of things.

So I would like to know what are some ways I can systemize my wholesale business, as well the flipping side of things.

Chris Clothier · Answer

@Cameron Ellis - If you are interested, I'd be happy to go to lunch or grab a coffee or something after the new year and answer any questions you have.  As you know, there are no secrets to success in this business.  You work your butt off, treat people the way you want to be treated, act with honor and honesty and keep your word.  If you can do those things, then the systems become easy to put in place and I will share anything with you that you want to know.

You are correct too in something I read between the lines of your post.  We use "systems" for organization and communication.  But there is also a system to everything else.  A system that says you take certain actions, perform them in a particular way and always in a certain order and you always inspect what you expect!  Because over time, every system has to be tweaked and changed in order to keep growing and getting better.

Hope to hear from you if you want to take me up on my offer.  All you have to do is bring a pad, pen and your questions.

J Scott · Answer

I don't want to speak for Chris, but most likely, the information that Chris has wouldn't be easy to share in anything less than a book...

My entire real estate business is systems and processes that essentially allow me to pull myself out of most parts of most transactions, and to try to enumerate that a forum post (or even 20 forum posts) would be difficult.

I'm not saying that Chris can't/won't post his thoughts here, but wanted to point out that it's probably not something he can sum up in a few paragraphs and do the topic any justice.  So, if he can't/won't summarize it in a post, this is likely why.

Btw, I've touched on this topic in one or both of my Podcasts here on BP...feel free to check them out...

Jason Fraser · Answer

Real Estate investing Systems by James Orr is a great book on the topic. I've been referencing it the last few days while putting together systems for my own business.

Cameron Ellis · Answer

Thanks Chris, i have your email I will be on touch after the holidays, enjoy !

Melodee Lucido · Answer

yes @Chris Clothier

what you said to @Cameron Ellis here "act with honor and honesty and keep your word" is huge. It is something I have missed in many of my Memphis relationships. I have had some people say they are honest and team players and they will cheat at the drop of a hat!

But this is a new year ahead of us and I am open to finding that more and more  ;-)

My systems include the step by step business plan with every detail for every part of the biz; legal docs necessary in jv deals and never doing a deal until that is in place;

and then of course a deal management system instead of bunch of notes laying on my desk lol. I started with mind maps and deal flow charts on the office wall so I could sharpen my business game.

All this gives the gift of an uncluttered mind and more skillful business management.

Best of success in the New Year!!

Anthony Aguillard · Answer

This is exactly why BP is so powerful, the sharing of expertise and knowledge is overwhelming. Just think if our politicians could collaborate like this.

Jordan Thibodeau · Answer

@Cameron Ellis Take the most basic aspect of your job and make a basic checklist for it. By creating a basic checklist you can measure how effective your business decisions were, which ones lead to problems, and what you can do more often to lead to desirable results.

For me, Tenant screening, it would look like this.

Phone Screen (Yes Or NO)

Application Received (Yes Or NO)

Called References (Yes Or NO)

Physical Walk Through w/ tenant (Yes Or NO)

Back Ground Check (Yes Or NO)

Final Decision (Yes Or NO)

Craig Nicholson · Answer

Btw, I've touched on this topic in one or both of my Podcasts here on BP...feel free to check them out...

Thank you, I am trying to learn as much as possible.

Craig Nicholson · Answer

Chris,

I would love to take you up on your offer but I live too far away, any chance you could post it here?

Cameron Ellis · Answer

Thanks Mel, can't remember why we stop working together but keep in touch and happy holidays

How to systemize your real estate business

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