Consider these important points!
WHY are you doing this? If you could express it in just ONE word, what would that word be? Over the years you will have good weeks and bad weeks, and at times you’ll feel like quitting… this word will keep you going. PS. It’s never about the money.
- EDUCATION is always going to be the BIG one. You will be spending large chunks of your money and taking care of someone else’s VERY valuable asset… so you can’t afford to make mistakes. We can help there; check the MLCs website events page.
- FFF. Work out your Financially Free Figure and aim for this as your first benchmark… or double it? People in the MLCS community often ain for £5k or £10k as a foundational cashflow benchmark. There is a formula in the MLCS Biz Plan to work this out but the average is £3k to £5k
- PLAN: It’s a cliché but if you ‘Fail to plan, you plan to fail!’ You can get our specific MLCS Business Plan – here … or failing that at least create a word doc with your FFF, how many properties you’ll need to get there, detail exactly how you will achieve it, how may viewings, available funds, potential JV partners etc
- RESEARCH – RESEARCH – RESEARCH. So many people jump in without spending enough time doing a ton of research… and then end up stuck with a property that won’t let. This research is simple to do… so don’t skip it.
- THAT FIRST DEAL. Obviously don’t take a deal if it doesn’t stack up, if the landlords an idiot, if it needs way to much work or if you haven’t done your research. But we know first deals are first deals… and carry a great deal of kudos… as well as building your confidence and credibility. It’s an emotional time and logic often goes out the window… we’re just saying take your time as a three year deal is a l-o-n-g time if you’re not making any money.
- BRAND is important… as you don’t get a second chance to make a first impression (cliché alert!) How do people see you? Do you dress the part? Do you have a classy business card and a good looking website? What about a brochure to hand to landlords and/or agents (you might need two types).
- KISS. Never go in for a kiss on the first date! You should be thinking about Landlords and Agents as long-term business partners and approach every meeting as such. What can YOU do for THEM to make their life easier? Create an environment where ‘they’ need ‘you’.
- SCRIPT. Imagine you get into an elevator with the perfect landlord/agent and you only have a minute to sell them the amazing concept of Rent 2 Rent. What will you say? You never know when this might happen so you need to be prepared and know your script word by word.
- NEVER back out of a deal or give a landlord/agent a hard time and always do what you say you will do when you say you’ll do it. Under promise and over deliver and surprise them with your efficiency.
- BE NICE… to agents 🙂 When an agents brings you a deal they’re enhancing your life over the coming years … so it’s only right that you reward them with a little something. Maybe higher admin fees or a nice handbag… your choice.
- THE LEGALITIES. We think of this as a tick list … it’s easy to do it and just as easy not too. Look out for a blog on Rent 2 Rent legalities on the MLCS website blog page. You can also access our book of tick-lists – Rent 2 Rent Secrets – here
- SOFTWARE. You WILL need some Property Management Software and we wholeheartedly recommend Podio. Start with the free version if you like or better still jump right in with our version. Try it free for a month and we guarantee you’ll never want to be without it ever again! Click here
- XERO is the only accountancy software we recommend and wish we had got it from day one. In the property world it very easy to allow chunks of money to go sliding out under the door… Xero will help keep a tight grip as you monitor every last penny.
- PLAY THE LONG GAME. If it was easy everyone would be doing it. There’s always work to be done but if you work ‘smart’ and to a system, it’ll be easily manageable. A ‘no’ is just a no for now, so pipeline those deals for later. Most agents and landlords say no seven times… and most property investors give up after three! Be different.
- PIPELINING. Work out your bottom line ‘before’ you start negotiating and be prepared to walk away if the numbers don’t add up. But don’t despair as the party is far from over. Some of our VERY BEST deals are properties where the agent or landlord scoffed at our initial offer. We left it open for them to call us back… and they did.
- GATHER TESTIMONIALS. People like to hear it from other people similar to themselves, so as soon as you have a few deals, SHOUT it out as LOUD as you can and make sure all the other landlords and agents know what they’re missing, as we all want what we can’t have 😉
- SALES. You are actually now working in Sales and Marketing and need to hone those skills. You’ll need to sell yourself to the landlord (not literally) and turn into a non-stop marketing machine to keep your rooms full at all times. We can help you with that; check out ‘Endless Tenants’ and ‘The Perfect Viewing’ here
- ‘YOU’ ARE THE BUSINESS. When starting out or gearing up your property empire, accept that you are the machine that drives everything forward. Get to bed and get up early, stay hydrated, stay focused and don’t waste time doing menial jobs that can be easily outsourced. Do what you are good at and you love and leverage everything else.
- HOLD REGULAR MEETINGS… with your business partners to make strategic plans. If you’re a one man/woman band, then hold meetings with yourself to monitor where you are at with your business, if you’re on scheduled and where you’re heading. They say that Apollo 13 was only ever on target for 3% of the time, other times they were constantly adjusting course to stay on track. Be like Apollo 13.
- BE BRUTAL… when it comes to properties, tenants and business partners. Monitor them all closely and if any of them are losing you money you must swiftly disassociate yourself from them. i.e. Hand properties back, evict tenants and dissolve partnerships. This is a business not a romantic liaison.
- STAYING CONNECTED. Everyone like to be a part of something bigger and we would be honoured if you chose to stay connected to our community. As well as that, staying plugged in means you get constant inspiration, make connections and stay up to date with important legislation.
- WHAT A RIDE! It’s always a good idea to start with the end in mind, so lets fast forward ten or twenty years and you’ve achieved everything you set out to do. Now what? Everything in life has an ending… how do you want your business to end? Sell up? Bequeath? Dissolve? See #4
- LAUGH. Smiling and laughing are great stress busters so make sure and schedule in some joviality and frivolity every day along the way. Life should be fun and if something is sucking all the fun out of your world… cut it loose. If you genuinely love what you’re doing… it’s not really work… is it?!
Let us know how we can help you and Happy investing 🙂
Francis
