When I started investing in Real Estate and created my landlord business I had a clear goal. To own enough property that I could generate an income to replace my job, to create a nest egg that would continue to increase in value over time and to get to a position where I had more free time for my family.
The problem was, I didn't have a clear path to get there. It was like knowing the destination, but not having a map to get me there.
While there are great things to be said about doing something on your own, it never hurts to get some helpful advice along the way Which leads me to the 3 steps I learned that helped me create a successful landlord business.
Step 1, Create a Network
To help you succeed the quickest, you need a network of friends, contractors, supporters and professionals to help you get there. By creating a trusted network who you can go to for advice, support and even guidance it can streamline years off your journey.
Our network includes lawyers, mortgage brokers, realtors, accountants, contractors and many friends we have met since we started, who are also in the landlord business. Much like a race car driver, we are only as good as the pit crew who makes sure everything is working top notch.
Step 2, Don't Stop Learning
To stay on top of your business as a landlord you need to continue to get landlord training and an education in many other related areas along the way. Having an understanding of the basics of economics can give you insights into what areas may be better suited for additional properties and it can make you aware of trends others don't see until it's too late.
Training in landlord and tenant legislation can help you deal with potential tenant problems easier and having an understanding of basic finances and mortgages can help you make better business decisions. Once you think you know it all, you start falling behind quickly, so never stop getting educated.
Step 3, Build Up Reserves
No matter how well you plan or who well things appear, you never know when the wheels will fall off, look back at the worldwide recession that recently hit us. For many it wiped them completely out, for those that had reserves built up and extra cash to cover them during the toughest times, it gave them an extra life (or two) to survive and prosper as the environment started turning around.
As tempting as it may be to pull all the profits out and buy a shiny new sports car or to pump them directly back into a new property, take a few minutes and make sure you have adequate reserves in case the situation changes.
By following these 3 steps, you can help get your landlord business not only get off the ground faster, but also help it survive longer and more profitably.