Not all investors invest the same way: If you put two investors side by side, and one of those investors invests in 1-5 properties and another investor invests in 100 properties, youll notice that they do things very different.
If you are an investor with a small handful of properties and you want to take your investing to the next level, heres what you need to do:
1. Get Focused
If you want to grow your business, you need to first decide how you want to grow. This means thinking carefully about what deals youll do moving forward. Look at the investments youve done so far and identify what you like about them and what you dont. If you have 3 properties, 2 of which are great multi-family properties in one area of town and 1 of which is a mediocre single family residence in a different area of town, thats a useful piece of information to guide you.
2. Set Goals
With a clearer focus on how you want your business to grow, youll next want to set goals around that growth. How many deals do you want to do in the next month, year, 5 years, 10 years? Although its good to set exact goals, understand that there might be some flexibility in those numbers because of external factors (like a market correction or a surprise windfall). As the saying goes, you dont know what you dont know so just make the best goals you can right now.
3. Set Up Systems And A Team
Build systems that support your goals. Create checklists and processes and best practices around each aspect of your investing, and then build teams and hand those systems off to your team. This may be the biggest challenge for you as you ascend from being an investor of 1-5 properties to being an investor of more, since you probably did many aspects of the investing yourself with your first few properties and now youre handing off that responsibility to someone else.
4. Create A Money Strategy
Of course youll need to acquire those properties with some kind of capital whether it comes out of your savings, borrowed against your credit score through a mortgage, borrowed from a private lender, or some other source. While many of the previous activities you did are now replaced by systems and a team, youll now be spending a majority of your time finding capital to invest with.
If you want to ascend from doing just a few deals to doing many deals regularly, youll need to go through these 4 steps to build a business that can scale up the way you want it to. And theres a common thread that runs through all 4 of these steps: youll need to change your mindset and start thinking bigger.