The Importance of Systemizing Your Real Estate Business

Whether you’re first starting out in real estate investing, or now a seasoned veteran, the time is now to systemize your business operations. You may think: “I know what I’m doing and I just do the same thing everytime.” As you grow, however, you will learn that time is the most precious commodity.

It is impossible to effectively delegate unless you have created systems and procedures. You can start super simple by making a Google Docs checklist. Check out this effortless due diligence checklist we use when acquiring residential rental properties :

Analysis

• • Check assessor card (zoning, square footage, assessed value, owner information)
• • Rental analysis from property manager
• • Broker’s opinion/CMA from agent
• • Check tenant status and review leases/ledgers

Pre-closing

• • Create Google Drive folder for property
• • Validate wire info and send EMD
• • Schedule inspection
• • Schedule sewer scope
• • Schedule contractor walkthrough
• • Send inspection report to contractor
• • Review Contractor scope of work
• • Obtain insurance and send insurance declaration to title company
• • Form LLC and open LLC bank account (if necessary)
• • Confirm utilities (if necessary)
• • Wire funds to title company

Post-closing

• • Register for Landlord Registry
• • Secure property while vacant
• • Change locks
• • Calendar reminder for annual property review

With simple systems like this in place, you can save yourself time whenever you are closing a deal, and ensure that you are not missing anything. Most importantly, as you grow, you can easily delegate certain tasks to partners or virtual assistants.

Creating systems take a relatively minimal amount of time compared to the eventual reward. Keep focused that you should only do something once before creating a system for it. Make a checklist of your typical offer terms (EMD, closing period, inspection period, etc.), make a deal analysis checklist, make a due diligence checklist (like the one above), make a checklist to keep track of rehabs, and on and on. Start this from the get go to accelerate your investing journey!

Comment below with any steps you would add to the due diligence checklist.