What A Full Time Realtor / Loan Officer Needs To Know:

I did not start writing with the intent of being asked all the time "How Do You Do It?"
These are my 5 steps to success, enjoy.



How to Make Money in Real Estate

5 Steps:

Make A Living
In real estate it’s all about “location, location, location”
….in business it’s all about “cash-flow, cash-flow, cash-flow”.
Put systems in place.
Have separate business and personal checking accounts.
Pay yourself an after tax salary (putting aside1/3 for taxes is a good rule of thumb….note: IRS compounds interest daily).
When you have cash, but no cash flow, it’s better to borrow from yourself (savings/reserves) than on credit….but you must pay yourself back!!

Create A Surplus
The first place to create a business surplus is in your home budget - make cuts at home.
Get a budget booklet and keep it with you. Having it in your presence influences your thinking. It makes you aware and triggers your subconscious mind.
ATM card – use it for all of the “little stuff”. You will become more cognoscente of how much you are spending on the little stuff…it adds up.
Invest in peace of mind – put reserves into a savings account. Remember, when we are fearful, we make bad decisions.
Proper expectation: To save 1 month of reserve (at approximately $5K/mo. expense) it will take 1 year after you put away for taxes. Saving the first month of reserve is the hardest, but it does become easier.

Invest In Your Business
When your cash flow increases…you should increase your surplus from 1 month of reserves to 2 months, 3 months, and so on.
Invest in your business by giving yourself a break. Example: Hire a housekeeper or an assistant (hiring an assistant can duplicate your time). All of those things to do…”life stuff”…may have to do with how tired you might feel. The emotional payoff just might inspire you to make calls, write notes and do your client pop-bys.
Consider forming a team
Invest/Grow. Your business needs to be fed economically. Consider client parties, coaching, seminars, etc.
Continually analyze yourself and your growth opportunities.

Take Chips Off The Table
Use cash to reinvest in other opportunities to create wealth.
Taxation/Inflation – compounding interest. You are taxed on earnings, dividends & what you pass on after death. Inflation increases 3% on average (picture a water bottle with a 3% hole…eventually it will be empty). Inflation: If it currently costs you $125K a year to live today, then in order to live the same lifestyle 25 years from now, you’d need $ 250K a year.
Do diligent homework & research….then invest!

Separate Your Personal Finances From Your Business Finances
Run your investments as a separate business
Insulate yourself – you’ll make good decisions (Example: The market change)
Keeping business finances separate from family finances makes them both better


Great Points to Keep In Mind:

To start the process of working by referral….you need to generate leads.
Working by referral is a system. It is both simple and complex…simple to understand, but not to do.
2.25 written notes a day to clients, equals 50 each month. Take it one day at a time.
Create a tracking component – you can’t manage what you can’t measure.
Some of the top people in business invest 8 – 10% of their income into their business (example: coaching, seminars, etc.).
When you pay for personal growth….you value it more.

“Excellence is doing the best you can, with what you have, in the time frame allowed.”

“Success is not by chance…it’s by choice. Fortunes are made with the little choices.”