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As your real estate portfolio grows, it becomes impossible to remember things like when you receive rent payments, when insurance is due, and other details about each individual property. That’s why it’s incredibly important to have a system in place to account for your cash flow.
On this episode of Investing in Real Estate, Natali and I are sharing our system for managing cash flow in our real estate business. This is something we wish we had implemented back when we just had one or two properties. The sooner you have a solid system in place, the better. You don’t want to miss episode 124!
More About This Show
Last year was a year of exponential growth in our real estate business. In fact, our portfolio doubled in one year! We were glad to have executed our goals beautifully, but we missed a few important steps in terms of managing those properties.
We didn’t know when our leases ended, when we collected rent payments, or when we had tax payments due. We were simply relying on bills coming in, and hoped that everything worked out. This is a terrible system! Without keeping track of these expenses and payments, it’s easy for things to spin out of control.
So we decided to put together a five-step system in order to keep track of our cash flow. The first tip is to set calendar notifications for insurance and tax payments. Especially since we moved to a new house, there was a huge margin for error. We easily forgotten to change our address, not received a bill, missed a payment, and suffered the consequences. When you have multiple properties, you simply have to have this kind of system in place. Any kind of calendar works, you can use Gmail, your phone, or an app.
The second tip is to set calendar alerts for payment days and lease expirations. This can easily fall through the cracks, unless you're proactive. Hopefully you’re working with a fantastic property management team who pays in a timely manner, and manages the leases, but you as a landlord still need to be cognizant about what is happening in your investment property.
Today on the show, we’re sharing the other four tips for managing the cash flow of your rental properties. We’ll talk about budgeting, spreadsheets, insurance, and more. You’ll also learn about the importance of tracking the details of your properties, and why you should implement a system early in your investing journey.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- How is a master spreadsheet helpful?
- Why do you need to know when your leases end?
- How can you plan your portfolio growth within your budget?
- What is the importance of being the authority of this information?
- And much more!
EP015: The Three Stages of Real Estate Investing
EP100: How to Organize Your Real Estate Investments
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