So you finally decided to get a bit more time on the golf course and spend more quality time with the family by going forward with your passive real estate investment portfolio. After all, it was something you wanted to do for a very long time. It may not have been an easy choice to make. However, your family is just as excited because now they’re going to see you a lot more and it’s a better fit for your current lifestyle. The passive income in a real estate career is spectacular but just know there are still six things you must do to oversee your portfolio to keep things on track.
We’re going to talk about six things that can make or break the golden lifestyle you’re planning for here. After all, nothing comes for free, and you know this because you busted tail for years up to this point. You’ve done all the right things to prepare such as learning from people you respect like Roger Staubach’s real estate Business. Hard work is a drop in the bucket anyway, so this stuff here should be as easy as ever as long as you stay on top of it.
1. Know Your Game Plan Explicitly
First things first, you want to know your game plan explicitly. The beautiful thing with passive Investments is they’ll already have performance projections set up for you to review. The person you’re working with should have these projections outlined in the documents, and they should have explained everything to you very accurately. Once you’ve gone through everything and have a clear picture of what you’re looking at you should set up a document in Google Sheets and do a summary highlighting the points you feel are essential to review consistently. This step alone will allow you more time on the golf course.
2. Review Your Financial Statements
Set aside and schedule 30 minutes a month to review your financial statements. Learn what works for you to become a quick study on this so that you’re not spending a ton of time looking these over. It’s easy to start with the management summary right away. Then look at your profit and loss statement for month-over-month. Next, go to your monthly detailed p&l and finally your cash flow statements. You can also look at the occupancy reports depending on the type of property you have. You can even compare the metrics of the actual performance to your projections that you’ve set aside previously. This action will allow you to get an idea of what’s trending with occupancy right now and give you a clear picture of its health.
3. Get On Every Phone Call
Get on every teleseminar, GoToMeeting and phonecall the manager hosts for calls. This one thing alone can make a huge difference so do not skim over the information and be distracted. Listen intently and understand what they’re looking to do going forward. Frequently there are golden nuggets revealed. For example, it can paint a picture allowing you to get a good understanding of the best condo markets you could invest into next.
4. Calculate Your ROI Investment Numbers
It’s vital to know how well your money is working for you, so look deeply into your return on investment numbers. The at a glance strategy is excellent and is the first thing you use particularly if you’re dealing with fluctuating internal costs issues. Compare your returns with other opportunities to see how yours stands up. It’s also a great idea to add this data to your Google Sheets document to determine any historical pattern.
5. Ask The Right Questions
Some of these documents can be pretty complex, and stuff can change quickly. Be sure when something isn’t looking right to ask questions as soon as possible to get clarity. There is never a dumb question. It’s easy to look something up online just to verify a point of concern. Even a seasoned professional can make a mistake, and you can guarantee they have at some point. So never feel out of place asking a question.
6. Don’t Slack Off On Your Habits
Develop a habit of repeating these steps on a monthly basis. These steps will serve you well allowing you to not only to enjoy your golf game or spend time with your family but know that your Investments are in good standing and stress-free. If you take the easy road out and become lazy with these crucial steps, doing nothing else other than watching real estate TV shows, it will cost you in the long run.
Taking on passive real estate Investments is a great concept especially when you need to reposition your time and back off, or you’re too busy to be in an active role. However, being diligent and smart about your every move can be simple and worthwhile. You should take these seriously. Life is too short, and it’s positively too short to make big mistakes that are preventable.