STEP 3: Increase Efficiency
Final Thoughts If you’re going to focus on owning fewer homes, they have to be run extremely efficiently to “squeeze all the juice” out of them. For example, I paint the inside of every home the same color and use the same brand of faucets and tile for a more efficient repair and tenant turnover process. I also make my rental properties a place that my tenants want to stay by being a great landlord and providing quality rental homes. That reduces vacancy, lowers tenant turnover and saves the time and cost of replacing tenants. I also focus on the microeconomics of the area, neighborhood and overall economy. Each one of my homes has become more profitable and the need to own a lot of homes to hit my gap amount has been diminished. The real benefit? I got my TIME back! If you want to own a shopping center or apartment complex, you should, but you shouldn’t feel like only buying 2-3 homes over 10-20 years won’t be enough. If you do it right, it will! As an investor, you may find yourself focusing on the money earned versus your time involved. The reality is you buy things with time, not money. When you evaluate what your gap amount is, make sure you accompany that with a scale of passivity. That’s simply a scale that compares your money earned as it relates to your time committed. I try to assist the novice and intermediate investors with viewing their properties like individual companies they own. If you owned a company, you would want to run it very efficiently, maximize profits and try to run a business that is desirable to the general public. You wouldn’t go out and start a company to be mediocre, you’d start it to be great. Each of your homes should be great. We go in depth on all these subjects and so much more in our guidebook, Plug the Holes, Fill the Barrel.
THE REALITY IS YOU BUY THINGS WITH TIME, NOT MONEY.
JASON KOGOK REALTOR® and Author LuxuryMovers Real Estate (919) 602-5969 jason@luxurymovers.com
Jason Kogok started his real estate career in North Carolina in 2002 and became a real estate partner in 2005 with LuxuryMovers. Jason has a General Contractors license and a broad sense of knowledge in investment properties. He enjoys fixing up homes in his spare time, as well as teaching real estate investing at Wake Tech & NC State University’s Continuing Education program. Most recently he authored the book Plug the Holes, Fill the Barrel to teach others the ABCs of building wealth and financial freedom through real estate investing.
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