Freedom comes in many forms, whether it be financial, time, or mobility. I am grateful that I can choose to travel as often as I’d like without restrictions to budget or limited vacation days from working at a company. We hustle and work our asses off 7 days a week just so we can enjoy the fruits of our labour in the future. As I’m typing this article, I am sightseeing in Japan and enjoying their delicious cuisine. I am managing my rental properties overseas with a 12 hour time zone difference. I am also going to be closing on our twelfth property this year while in Japan.
It’s all about SYSTEMS and my TEAM of professionals working with me.
As we are scaling our business, we have hired a property management company to help look after our properties. A common misconception is after you have a property manager, you don’t need to look at your investments again and everything becomes hands-off and passive. The truth of the matter is that there are still hundreds of emails that go back and forth every day. We may give authorization for them to do small repairs without running it by us but for large repairs, they still have to obtain various quotes and run it by us. One book that really set the expectation of being a landlord is Julie Broad’s book “More than Cashflow: The Real Risks & Rewards of Profitable Real Estate Investing”. She goes over how she hired a property manager and after being completely hands off, the property manager was stealing rent money from her accounts, mismanaged her properties, and even had a case of manslaughter happen at one of her properties. https://www.amazon.ca/More-Than-Cashflow-Profitable-Investing/dp/0991906012
PROTIP: We keep a lockbox at each of our rental properties. We live about an hour away from Barrie so we’d beat ourselves up if we drove all the way up to Barrie only to say “shoot, I forgot my keys in Toronto”. We have literally hundreds of keys so it would be very inconvenient to sort through all of them. Lastly, the main benefit of having a lockbox is our property managers, contractors, locksmiths, plumbers, etc. can access the lockbox without us having to be physically at the property. With real estate investing, issues arise at the WORST possible time (think Friday nights, weekends, holidays, Christmas day).
As for the property that I will be closing on in November, my team is working diligently on all the moving parts at once. My mortgage broker is helping me obtain the best mortgage product for the BRRRR strategy. My lawyer is working on the backend doing title searches and preparing various closing documents and disbursements of funds. My insurance broker is hunting for a comprehensive landlord insurance plan that covers all my needs. My property manager is scheduling showings for potential tenants to rent out the top floor. My architect is preparing drawings for submission to the City of Barrie to apply for a building permit. All this is done ahead of time so my contractors can start work right away on the day the house closes. Of course, I have to get the wheels turning by giving instructions to my team and to meet certain deadlines. I will be responding to emails and I’ll have access to all my documents on Google Drive while I’m halfway across the world. All I need is access to WiFi.
What systems do you have in place for your real estate investments? I love the feeling of travelling around the world and learning various cultures and experiences while my tenants pay down my mortgage!