Why Should We All Own a Level Three Business, Before Our Business Owns Us?

Why Should We All Own a Level Three Business, Before Our Business Owns Us

?

When I first started my real estate investing business, I focused on learning how to get customers and then learning how to put deals together and then learning how to close deals. The next thing I learned is how to get more deals, while I was already working on other deals. It wasn't too long before I was so busy that I could not take on any new deals. I was the proud owner of a Level One business.

Today I operate a Level Three business. I can and have done many other transactions including short sales, sub-tos, wraps, rehabs, etc.

Business levels can be defined as:

Level One: The Tech-This is the How-To level where everyone starts. One makes the same money at this level as one makes going to college-Zero!

Level Two: Marketing and Systems-This level is achieved after the investor sort of figures out the how-to of investing (including marketing and closing transactions) and is completing deals. This is the "Mom and Pop" storefront analogy: You're making money, but working your rear-end off. This is where most businesses die because of owner burn-out.

Level Three: Outsourcing-This is the level of the business whereby you're now a business owner (normally with employees) and you hire others to perform most of the daily tasks within your business. It is this stage of business where you begin to work ON your business rather than IN your business. This is what the E-Myth is all about. With the right business model at this stage, your normally not limited by geography. For example, I set up a business outlet in another state in about 30 minutes.

The key point is to understand that we have to be ever more diligent on calculating the offer. Note, formulas used to calculate offers on long-term hold real estate are not at all related to fix and flip formulas, and these deals are normally disastrous for the unsuspecting investor.

We talk much more about this in the What2offer mentoring program. After years of doing these calculations by hand, my partner and I have developed an online real estate software to make our lives much easier. We can now crank out offers and determine the exit strategy in seconds.

To Your Success,

Tom & Svein

POST COMMENT

How Blogs Help Promote Home Based Business SEO promotion : transforming business promotion to next levels 5 Reasons Why No 1 Up Cash Gifting Programs Are Popular How A Merchant Cash Advance Can Help Your Business? Are No 1 Up Cash Gifting Programs Legal? How to get More Productive The Pros and Cons Of No 1 Up Cash Gifting Programs! 3 Advantages of No 1 UP Cash Gifitng! What Is a B2B Business Process? How To acquire FarmVille Hard cash For three Effortless Steps Calgary Stagers -Smooth and Productive Property Marketing 8 Ways To Get Customers For Your Small Business While You Sleep The Risk of Running a Business