Let’s face it: Real estate investing isn’t easy. In the beginning, we try to do everything ourselves. Finding deals, administrative work, building teams—real estate investors do it all. Easily caught in the day-to-day, soon the big picture slips away. Why? We are constantly immersed in our work. And that can be a problem.
Sure, being a do-it-yourself investor can give you experience which is good. But there comes a point where you have to go to a higher level. And that is one of being a manager. Otherwise, you’ll burn yourself out. Believe me, I know. I’ve been there, done that.
As an investor, one area where you’ll eventually find yourself in a management position is when you have homes to fix up. At first, you can be resourceful and do the work yourself to save on costs. Small projects like light cleaning, handyman-type work, and painting are all things that can be easily learned. Though, they require time. What you gain is experience. But this takes away from what investors should be doing. And that is finding and negotiating deals.
In real estate investing, there are tasks that can take time away from your overall business. It’s not just about investing and receiving a return on your money. That’s only part of the picture. Real estate investing involves management. Deals are not done until units are filled which means being rented or sold. Many times, properties need work. Either you do the work yourself or you hire others to do it for you. Whatever route you choose, the work still needs to get done.
Experience will teach you to do the job your way. But eventually, you can’t be at many places at once. This is especially true when you have multiple properties to deal with. They need attention. Someone needs to do the work. Eventually, you’ll have to learn how to find, hire and manage contractors to get the help you need. Here are some benefits on why it’s important:
Hiring contractors frees up your time.
You can’t be in multiple places at the same time. Even if you have one project or home to fix up, it will require time. When you have units to repair, not only do you have to factor in the time to do the job but you have to consider other items such as travel time, purchasing, and buying supplies (and let’s hope you get the right ones on the first try), cleanup and time to travel back home. These are tasks that you are doing for free which all take time and energy. Why not free up your most valuable asset (time)? Hire out simple tasks so that you can focus on other activities…like finding investments.
Hiring contractors makes you a better manager.
When you start interviewing and hiring, you will learn how to manage people. And that is a valuable skill. You’ll have to make sure the work is scheduled and done on time. You’ll constantly check up on the people you hire to get the job done right. You’ll have to show up at job sites and inspect their work. You’ll have to evaluate the progress of the job. This takes time but it will teach you how to manage others. And that is priceless.
Hiring contractors improves your business.
By finding people to do the work for you, your business will grow. Jobs get done faster. You’ll have a quicker turnaround time. You’ll be able to do other things like find deals and spend time with your family. No longer will you have to go to the job site and dread doing the actual work. Sure, you’ll still have to oversee the process. But your time will be spent more efficiently since you’ve hired the workout. Your energy and attention can be directed elsewhere which will only multiply your business and make it grow.
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Hiring contractors makes you a better networker.
As a business owner, interviewing people is a necessary skill. Learning how to interview the right people is even more important. By constantly hiring contractors, you’ll learn to screen potential candidates. You’ll learn how to interview on the phone, in person and even during the job as it progresses after making hiring a decision. By constantly interviewing, you’ll learn an invaluable skill and become a better networker. If you need help in one area, you’ll be forced to find ways to find people to do the work. You’ll learn to be resourceful by asking for referrals or straight out cold calling. In the end, it can only help your business.
Hiring contractors keeps you on your toes.
By hiring and managing contractors, there may be times when things don’t go as planned. Issues will come up. A project may not be going the way you discussed. Scheduling may be off. You may have to fire a contractor. All of these items require skills. And you’ll get the experience to gain these skills through practice. You may have to re-hire the workout. Or a contractor may not be able to complete a job. Whatever the case, you’re constantly striving to improve the situation and make it better. Learning how to work with contractors will keep you alert and up to par on your business.
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By learning how to hire contractors, you’ll take your business to the next level. This is the only way you can grow and free up your time. You’ll be put in a different position: one of being a manager. And you’ll learn new skills along the way. Jobs will get done faster with the help your hire. You can’t do it all yourself. With enough practice and experience, you’ll be able to focus on tasks that make better use of your time which will make you a better real estate investor. Start today and hire the workout to get the help you need.
Rachel Hernandez is the author of the book Real Estate Investing Sucks: How to Find, Hire, and Manage Contractors—the Right Way! Find her at: www.adventuresinmobilehomes.com.