594: Building a Winning REI Strategy!

February 4, 2022bmanasseroUncategorizedNo comments

SHOW NOTES FOR EPISODE 594: BUILDING A WINNING REI STRATEGY!

Before you can become successful at real estate investing, you must build a solid foundation from which to build your business. In this episode, Bill shares the five phases necessary to building a strong, sustaining real estate investing success strategy

Introduction

This is the third episode of our 10-episode series called 10 Steps to Real Estate Investing Success. To recap or first two episodes…

590: Is Real Estate Investing For You?

We’ve talked about the pros and cons of REI
We talked about passive vs. active REI
How much time is involved
Expected Returns-on-Investment
We looked at whether real estate investing is really for you or not

592: What Type of Real Estate Investing is For You?

We showed you a wide variety of different types of real estate investing
- Wholesaling
- Fix ‘n flip
- Buy ‘n Hold
- Passive strategies, like
  - REITS
  - Private money lending
  - Syndication investing
- And much more
We also gave an overview of what each strategy involves

Building a Winning REI Strategy!

So, today were going to help you put it all together

Hopefully, you’ve decided REI is for you
And what type of investing strategy you want to employ
Now, we are going to talk about setting the foundation for success
This is where “the rubber meets the road”

Here is where you’ll need to build a solid foundation for success

Five Steps to Building a Strong REI Foundation

There a five main steps to establishing a strong foundation for success:

Know your Why
Do Your Research
Find a Mentor
Establish your mission and vision
Define your goals and write a strategic action plan

1. Know Your Why

This is a critical step
Because if you don’t know why you are doing it, there won’t be any reason to stick with it. It will be just too easy to quit
Your “Why” is what you will always go back to when things get tough
It will motivate you to stay committed and stay “on course”
Listen to episode #122 on 122: The Importance of Knowing Your Why
And episode #508 on 508: Remembering Your Why

2. Do Your Research

Now, here is where you’re going to go deep! You really need to dig very deep here
Collect as much information as you can about…
- The strategies involved in your type of investing
- How much time will be involved?
- How much time will it take to achieve my goals?
- How much will it cost?
- How do I gauge my success?
This is where you want to fully understand what you are going to do and what it will take – timewise, cashwise, etc.
How do you conduct this research
- Meet with people who have succeeded at what you want to do
  - Have a carefully compiled list of questions
  - Pick their brains
- Read books, articles
- Watch YouTube videos
- Attend webinars, online courses and boot camps
- Listen to podcasts
Write down/compile everything you have learned to reference later
Links:

3. Find a Mentor

This next step isn’t always easy but it is critical if you want to reduce your risk and make less mistakes
Finding a mentor or coach that can help direct you, review your plans and strategies is invaluable
A good mentor who has years of experience doing what you want to do will save you countless time and money
A mentor should be experienced and willing to work with you
Some mentors are free. Some are not. You can find good mentors from both categories.
- Yes, there are some from both categories who may not help at all.
- You need to check your mentor out well
Finding a good mentor takes some research
I’ve attached inks that will help you with this
Links:

5. Develop a Mission and Vision for your Real Estate Company

Think of your real estate investing as a business – because that is what it is!
A Mission Statement defines the company’s business, its objectives and its approach to reach those objectives.
Mission statement questions look like:
- What do we do?
- Whom do we serve?
- How do we serve them?
A Vision Statement describes the desired future position of the company. Elements of Mission and Vision Statements are often combined to provide a statement of the company’s purposes, goals and values.
Vision statement questions look like:
- What are our hopes and dreams?
- What problem are we solving for the greater good?
- Who and what are we inspiring to change?

SAMPLE MISSION AND VISION STATEMENTS

Company: Tesla
Mission: To accelerate the world’s transition to sustainable energy.
Vision: To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.
Why it works: What better word than “accelerate” in a mission to serve as the driving force behind what Tesla does. While boldly stating “best in the century” reflects loftier dreams in the vision.

___________________________________

Company: AirBnB
Mission: Belong anywhere.
Vision: Tapping into the universal human yearning to belong—the desire to feel welcomed, respected, and appreciated for who you are, no matter where you might be.
Why it works: In just two words, the Airbnb mission says “we help you feel at home.” They explore a deeper sense of belonging in the vision, tapping into the universal human desire their company aims for.

___________________________

Sample Real Estate Company Mission and Vision

Company: South Bay Properties Group LLC
Mission: Building community in a place you love to call home
Vision: Providing quality, affordable workforce housing for busy working people where they can enjoy, relax and be recharged.
Why it works: It’s more than just a roof over one’s head. It’s affordable multifamily housing in an environment that makes people want to stay home, with amenities and services usually found in upper scale housing.

Links:

6. Define Your Goals and Write a Strategic Action Plan

From your Mission and Vision, you can start to develop a Strategic Real Estate Investing Plan
This is where you will describe your Goals and how you hope to achieve those goals
Next, you want to set goals for this year and the next 5 and 10 years
Since this part is a bit more involved, I will include links to show notes to better explain how specifically to develop your plan

Links:

With a well-developed strategic plan, you can begin implementing your action plan. With each step, you document your results, how the plans are proceed and record the results. As you track your results, you will see how your strategies are succeeding. Where they lack, you re-engineer and try again, where they succeed or surpass expectations, you increase those strategies.

What happens is that your Plan becomes a living document that continually improves with time the moves you closer and closer to your goals.

This is a document your share with your team members and strategic partners. You also use it to develop a more business plan should you be seeking funding from a financial institution.

In Conclusion

“A goal without a plan is just a wish.” So is a real estate investor’s hopes of being successful without a plan. A well-developed strategic plan will yield significant success.

Take the time to go over this podcast and check out the links provided.

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bmanassero

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