How to Build a Multi-Million $ Real-Estate Business
How to Build a Multi-Million $ Real-Estate Business
Why are effective exit strategies crucial to plan in advance?
Planning is crucial, and I credit my career in oil and gas for emphasizing the importance of exit strategies. When starting any project, the first consideration is always, "How do we get out in an emergency?" All my plans are structured with an exit in mind. When creating any plan, the question is, "Where am I trying to go?" For example, if my destination is Washington D.C., I wouldn’t start by heading towards Washington state. Knowing your exit or endpoint is essential, and although the path may involve good and bad decisions, the key is learning from each experience.
Why must business owners manage operations closely during industry transitions?
Real estate has been highly beneficial, with no majorly bad deals. However, one oversight in our business strategy was during our transition from oil and gas to real estate, which happened quickly and successfully replaced my income, primarily driven by our construction operations. We uniquely combined property management, construction, and operations, which fueled our growth. Nevertheless, we somewhat neglected our construction operations by setting it on autopilot, which performed well initially but lacked adequate planning for necessary pivots. Being adaptable has always been important to me, and the COVID-19 pandemic significantly altered the construction industry, from pricing and sourcing materials to hiring and project completion. The greatest mistake was distancing myself from day-to-day operations and losing a close connection with this critical aspect of our business.
What helps business owners overcome analysis paralysis and take action?
Making the decision to get started was crucial for me, and I consistently share this advice with my team and those around me. I spent considerable time deliberating and planning, using spreadsheets to organize my thoughts and strategies. This extensive planning period can lead to what is known as 'analysis paralysis.' Ultimately, the key is to take the first step. You will make mistakes, but the important thing is to start.
What are the advantages of making quick decisions in business management?
I tend to make decisions quickly, whether good or bad, because time is often critical. We can spend two weeks deliberating a decision that could have been made in seconds, and typically, the decision we would make immediately is the same one we’d arrive at after extensive consideration. Making decisions promptly allows us to move forward faster. If a decision proves incorrect, we can address it sooner rather than later. This approach applies to various aspects of business, whether it involves investment portfolios or employment matters. Delaying the inevitable has, in my experience, more often than not led to negative outcomes.
*This interview has been edited and condensed for clarity.*
