How do you implement systems in your business?

[Kyle Ferguson]

Hi All, I’m not an investor yet, but I’m hoping to be one soon. I’ve been studying for months now and one question continually pops into my head: How do you implement effective business management systems in order to develop a self-sustaining enterprise (specifically property management)? I hear a lot of people say: “I self-manage all of my properties”...However isn’t that slightly deceiving considering that person has 300+ units? There is no way they are personally managing all 300...Does that mean they personally hire managers to work within their “company” (essentially running an investment AND management company)? I’m curious how many of you do this in order to save time without losing a percentage of your monthly cash flow to management companies. One of my favorite multi-family investors, Rod Khleif, often discusses how it is the same amount of work managing 3 units as it is to manage 300. So how so you guys make this work? I have to think more units=more infrastructure. What are your business operations/property management strategies?

[Sean Lambert]

I'm no where close to 300 doors, but I always review my processes and look for areas that I can make improvements.  I want to work smarter, not harder.  Tracking receipts for our properties is very manual right now, so I'm looking on how to automate/simplify that process.  Always look for continuous improvement of processes, which includes all facets of investing...tracking current assets, assessing new properties, etc.

[Max T.]

It just means you have clearly defined policies in writing that you use and apply to all of your rentals, making the decision-making far more efficient and streamlined. How do you implement them? Like Nike - just do it.

[Rod Khleif]

@Kyle Ferguson

Hi Kyle, thank you for the mention. When someone says they are "self managing" it means they do not have a third party property management company. If you are self managing a local triplex you may do all of the management and/or some maintenance yourself. When you get into self managing larger properties/portfolios, in your example 300 units, you would have a property manager and/or your own team in place. You would hire and manage them. They would perform all of the tasks a (for fee) property management company would perform. Ideally, you would hire for all of the required tasks/roles and focus on regularly working "on" the business and not "in" the business. Looking forward to seeing you crush it in multifamily!

[Kyle Ferguson]

Thanks guys! @Rod Khleif thanks for the help and love the show!