Tom Berry’s Tips for 2019 Part2

Tip #7

Build Multiple Income Streams

Some of your income may come from real estate and some may not. If you start out like my wife and I did, full time, then all of your income will come from one place. For my wife and I, that income stream was Wholesaling. It was sufficient but I quickly knew I wanted to have multiple income streams for security. We began to hold a few of these properties as rentals and every once in a while we would fix and flip a property. This allowed us to start building multiple income streams. This gave us more stability and consistency which allowed us to do more projects. Today we have other businesses’ outside of real estate providing us additional income streams but it all starts with just the first one. Once you’ve mastered that first skill you can add another and in turn add another stream of income. Once a year my wife, Melissa, and I take a look at all of our income streams and eliminate the bottom one or two based on that year’s performance. We always eliminate the bottom tier of our income streams because I know the next year I’m going to expand and be faced with more opportunities. You will have to start eliminating areas that are not growing to move forward on the next project or the better performing income stream.

Tip #6

Delegate, Delegate, Delegate

Delegate and track everything in your company… except branding!

What I mean by that is we want to eliminate all the tasks that we, the owner, have to do in the company excluding the task of branding. I want to unload everything I can so I only need to focus and tackle the big tasks. Initially, you will say, “Well I am my company – I don’t have anyone else”. That’s fine for now but start thinking about the things you would eliminate if you had an employee, a virtual assistant, or someone else on your team. Start thinking about how much more productive you could be if you started delegating those tasks – particularly low paying tasks. Give yourself an hourly rate and say I’m going to eliminate everything I’m doing in my business that does not pay over “X” then fill in the blank. You may say “I can hire someone for less than $15 an hour to do this then I shouldn’t be doing it.” Eliminate or delegate the smaller more time-consuming tasks. Once you do delegate these tasks you want to track it. Make sure the work is still being done and most importantly, being done the way you want it to be done. Eliminate all the work that you can, if you can, because that will free you up to tackle bigger tasks and allow you to grow. Remember, there is no one man army.

Tip #5

Study Market Cycles

This tip is one of the LEAST talked about areas in real estate investing and probably one of the most important. All markets move up and down. You’ve probably seen this in stocks, gold, and silver pricing. Those same metrics exist for real estate in submarkets and of a particular asset class. Real estate can be defined by those two things, submarkets and assets classes. Let’s say you’re investing in a particular market and in a particular asset class, such as Houston and the submarket of Galveston, with your asset class being single family homes. You want to be a student of that market, you want to study the cycle of that market. One of the biggest misconceptions in real estate is that values only go UP and that is absolutely NOT true. Real estate goes up, down, and sideways for periods of time. A market cycle typically will last anywhere from 8 to 10 years. This can be from peak to peak, or valley to valley, depending on where you’re starting in the cycle. Understanding what the cycle is doing and expecting what’s coming next gives you a huge advantage over your competition. In the marketplace, most commodities are not predictable because they have what we call high volatility. It is very difficult to predict the direction of a stock, currency, or precious metal but it is NOT that hard to predict real estate. If you understand real estate, you understand that it moves very slowly. It’s not as volatile, it still moves up, down, and sideways, but it does it in a much slower fashion. Start studying the cycles of what you’re investing in and where you’re investing so that you know what’s coming and what to do next. Start online! You can find everything online now. Example: You’re investing in an apartment complex? Check your local MLS – look at the historical data then study the historical data through Costar, LoopNet, or Commercial Gateway. The internet is full of amazing resources to gauge the market cycle in the submarket and asset class of your choice. Start studying now!

Tom Berry’s Tips for 2019 Part1

Tip #10

Your Network will = Your Net Worth

“Your Network Will Equal your Net Worth.” This is a catchy saying we hear often at a lot of different real estate meetings. But so many don’t understand what it really means. People are the most important part of your business, not your marketing, not the contacts you have, not the money you have – it’s about the people in your network. If you build a strong enough network over time you will find tons of private money, new deals, partners, trades, realtors, pretty much everything that you need – even the people and resources you didn’t know you needed. Like crucial professionals such as your attorney or your accountant. In this business, it is really all about the people in your network. The sad and unfortunate truth is many of us miss that. So, believe me when I say, “Your Network Will Equal your Net Worth.” Growing a strong reliable network of people TODAY will provide you with more resources and growth opportunities TOMORROW. Start building your network today.

Tip #9

Stay Focused on ONE strategy until Mastered Before Moving to the Next

Stay focused on one strategy until you master it. Once you have mastered your desired strategy then consider learning and adding new strategies to your business plan. I often see many people get into real estate and start bouncing around from one strategy to another… and another… and another. They get into real estate with the idea that they’re going to wholesale. The next week they’re rehabbers and the week after that, they’re taking a class on how to buy non-performing notes. What they’re really doing is chasing the easiest way to make money… or trying to. The fact is, there is no easy way to make money. All successful real estate strategies work at one point or another depending on the market cycle. The real professionals in R.E. investing know what they want to do and what they are capable of. They immerse themselves in the education necessary to become a master at it. Bouncing from one shiny penny to another or one strategy to the next, just because you think it’s going to be easy, will keep you from mastering anything.

Tip #8

Systemize Everything

To systemize means to repeatedly do a task in the same way so that you can do it in the most efficient manner possible. When you systemize tasks for efficiency it allows you to accomplish more faster. It’s important to organize and create these systems so that you can easily train another to do the same. Setting up standard practices and repeating these tasks eliminates room for error and allows for more growth in your business. As your business grows, your employee numbers will too. Having in place practices and systems will allow for a smooth transition. If you don’t work towards systemization you will never own a business you’ll just own a job.