For most investors, the plan is to create a scalable, passive-income machine through real estate. But this requires realizing you simply can’t do it all yourself. It can be difficult to relinquish control, but it’s necessary for a successful business to outsource.
Deciding when to relinquish control of certain responsibilities in your business can be an emotional decision. For many of us, we care so deeply about our businesses, and are heavily invested in the inner workings. However, you cannot, and should not do it all. Scaling up often means stepping away.
Here’s an example: for years, Natali acted as the bookkeeper for our personal real estate business. There were many responsibilities that she covered in that role—payroll, spreadsheets, banking duties. As our portfolio grew, this duty became overwhelming for her.
It came to the point that we had to take the responsibility off of her plate, and trust a professional. You might hesitate because you don’t want to spend a few hundred dollars per year on a bookkeeper, but it’s so worth it! A trained professional can actually save you money, as well as eliminate the headaches.
The same goes for taxes. As Tom Wheelwright mentioned on the podcast, if you are paying taxes as a real estate investor, you’re doing it wrong! We believe that outsourcing your taxes is crucial. You might think you’re saving money by doing it yourself, but a proper accountant can save you 10s of 1000s of dollars on your taxes.
You have to know when to let go, and relinquish control to the professionals. It can be hard to know exactly when the right time is, but if you’re beginning to feel overwhelm, that’s usually a sign. When you hire someone who is accountable and focused, it will make your business run much more smoothly, and alleviate much of your stress. After all, buy and hold real estate is supposed to be all about passive income!
In case you missed it, check out last week’s blog post on becoming a hands-off investor!
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