Sunday, July 14, 2013

This Week Eric Schmucker Will Bring It Back To The Basics with Advanced Overtones…


Wow, another knockout meeting this week. Our member and good friend Eric Schmucker will be talking about development of a strong Business System. Sometimes we all have to get out of the ship (which would be your daily operations) step back and steer the ship (the overall direction your ship is going). It's important to do this on at least a monthly basis in my opinion. And daily basis once you really become an investor rather than a business owner.

Have some goals and make sure you are continually going in the direction of fulfilling them by modifying the Business System you currently have to streamline it or focus your personal efforts on the things that make you money and or things that you enjoy spending your money on. And as you grow, step out of the day to day operations by hiring good people to maintain the ship while you generally direct it the way you want it to go.  

Remember the 4 quadrants that Rich Dad's Robert Kyosaki preached? Employee (have a job) , Self Employed (own a job), Business owner (own a system), Investor (own investments). We all need to be developing good systems in order to retire and step out completely while your system continues to function at a high degree of success without much effort on your part.

I would currently classify myself  as a business owner based on Robert Kyosaki's analysis. I went from doing everything myself with a few people helping me back in the good old self employed days. Then on to putting together systems that I haven't yet fully developed in the business owner category. I have a great contractor that takes care of all of my rehabs and maintenance calls. With the number of units I have there is still a full time amount of work to do so my next step will be getting a good property manager that is quick to evict dead beats and even faster at re-renting unoccupied units. I want them to treat vacancies like the plague and put all of their attention on solving that problem when it occurs.

Once I have that under wraps I will be able to completely move to the investor category where I will travel as much as I want and spend all of my days doing what I want and managing my money. So the "doing what I want" will be what makes me money and nothing to do with the day to day operations. I will focus all of my efforts on obtaining financing and looking for great deals. That's it.

Here's the run down from Eric on some of the details of the meeting:

"Next Tuesday, I would like to lead a general group discussion on building a business, or "Business System".  A back-to-basics meeting, that will help new members learn how to get started in the Real estate business.  This meeting will also help current investors and business owners in every phase of running a business, such as:  How to raise capital and where to get it, marketing, building your team, finding deals, Legal aspects of business (Entities and Contracts), and avoiding problems that every business and investor runs into.  9-of-10 businesses fail every year, because of unrecognized weaknesses they have within the business system.  I hope this meeting will help REI members avoid becoming one of those 9."

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