On December 16 and 17, real estate investor, J Scott visited Fund That Flip's Cleveland office to provide some industry insights on optimizing and scaling your real estate business. Scott began in the real estate industry in 2008, going into business with his wife. Since then, Scott has gone on to not only fix and flip and invest in many housing projects, but also author multiple books on the subject. While visiting Fund That Flip, Scott shares some tips on how to optimize and scale your real estate business, through a strategy he calls, "The Big Fix - 1 through 6."
1. Segmentation
Segmentation includes grouping the tasks of your business together by category. For example, Scott broke his real estate investing business into segments of acquisition, rehab, marketing/selling, and raising capital. Segmenting your business will increase efficiency by allowing you to more accurately allocate time and resource to each segment.
2. Delegation
Delegation goes hand-in-hand with segmentation. This involves determining the opportunity cost of outsourcing tasks. This will vary based on your own skills, experience, and capital.
3. Documentation
Documentation is critical in keeping your business organized. With all that is going on, you will need to be able to track and have records of what has been completed, what still needs to be completed, what resources are available, etc.
4. Replication
Replication is a great tool to save time and resources. For example, Scott discussed buying the same color of paint to be used in the kitchens of all houses he was working on at once. By doing this, he was able to save time shopping and save money by buying in bulk.
5. Expectation
To discuss expectation, Scott references Peter Drucker, "If you can't measure it, you can't improve it." Scott takes this one step further providing his own quote, "If you don't measure it, you won't improve it." Scott suggests that if you are unable to identify the relationship between your work and your results, you will be unable to improve.
6. Prioritization
Scott explains the importance of prioritizing your most desired result. For example, some people get into real estate business for the money and others get into it for the time aspect (choose your own hours, etc.). While it is possible to see both results, it is important to choose which is more important in order to prioritize.
Be sure to check out J Scott on his website and tune in below for his full presentation!
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