In this episode, I continue my month long All-Star Q&A Series. All month, I am going to be asking some of the most incredible real estate investors that I have interviewed over the past seven months questions that I commonly get from new real estate investors. This is an incredibly powerful series and I am really excited to bring it to you. We are continuing the series with the following question: Should a new real estate investor try to automate their business right from the start, and if so, what can and should be automated?
Justin starts off by making it very clear that he absolutely loves automation! He has made it a very high priority in his business to make sure that he is working on his business and not in it. He went on to say that it is important for new real estate investors to try and automate things as much as possible, but until you have a working knowledge of the fundamentals of real estate investing, it is very hard to automate tasks. In other words, if you don’t understand the business fundamentally, how can you create systems that run it for you?
That being said, there are things that even a new real estate investor can outsource. A few of the ideas that Justin proposed are as follows:
- Stuffing envelopes.
- Addressing envelopes
- Listing properties
- Miscellaneous paperwork.
- Turning on utilities
The idea, according to Justin, is to start off small and give assistants mundane tasks that are very easy to explain. This may be on a part-time basis at first.
Another tip on automating your business is using realtors to help send you deals. This costs you nothing because realtors work on commission and get paid only after you purchase or sell a house.
Justin also advises using common materials on your flips so that the process of finding materials can be automated, in a sense, because you always use the same ones. You’re not reinventing the wheel every time you flip a house.
Finally, Justin references The E-Myth by Michael E. Gerber when it comes to listing all of the tasks that you do in your business and slowly trying to hire them out. Maybe your realtor can do a few of them, your contractor can do a few, and over time you can hire the rest of the tasks out. Eventually, you should “work yourself out of a job”.
You can find Justin at: