Mark Simpson and a guest discuss building a small property portfolio. After hitting four units, the guest hired a full-time staff member to handle operations so they could focus on finding deals. Mark emphasizes doing the 20% of work that generates 80% of profit, and addresses how to pitch yourself to landlords and letting agents.
What was, what did you learn? What was the best practices that you were doing at the time to help you go from say 5 to where you are now with 40 plus what.
I did when I got 4 units, I actually employed a full time staff member. Now a lot of people would say, why would you do that? Because that's eating up all your profit. Please understand, there would be no profit left if I didn't get that full time staff member rent because there'd be no business. So my vision was always very clear. I'm extremely good at getting the properties, but I'm terrible at managing it. So I hired a full time member of staff that came in, systemized the business, ran the cleaning teams, dealt with the guests and this let me focus on what I was really good at.
Like what you say there, focus on what you're good at, focus on what you enjoy doing because otherwise it can really get pressurizing straight. On episode three of this podcast series, we spoke to David and Amanda from the SA Angels and they talk about outsourcing and that is a real good, like correlations. Very, very good. Sort of go alongside each other is that focus on what you're good at, focus on the 20% of the activities that bring in 80% of your profit and that means that you have to hire some. There's a really common question that I see all the time in the Facebook groups, whether it's service, accommodation or just anything. And basically it goes along the lines of, I've spotted a deal, now what do I have to say to the landlord to secure it? So when we say landlord, landlord, letting agents, however you want to phrase it. So they found the place, they found the property, the right one for them, they want to get it, they want to secure it, but they don't know what to say. You've obviously got the sales background, got the gift of the gab. What advice would you give to somebody who's right at the very start and they're looking to now approach these landlords and letting agents to get involved in sae?
Bit stupid. Simple. I see people over complicating their bloody simple deal by talking about tax, by talking about capital allowances, by talking about all this crazy shit that they really don't actually understand themselves. I mean, I don't even understand it. So let's be clear. If I pay my rent on the first of the month and I do not pay my rent in that bank account by the first of that month, by the seventh, I need to leave that property. I've got zero right to be there. So where is the risk? You go and put a tenant into this property, they don't pay the rent. At any point in time, you've got an eviction process, you've got no money coming in and you've got solicitor fees. Or you take a gamble with me. I'm going to furnish this place, make it look spic and span. I'm going to have weekly checks by the cleaners, I'm going to have monthly health and safety inspections, and best of all, if I default on my payment at any point in time, within one week after it, I've got zero right to be at the property.
I Tested AI Search SEO for Rental Hosts... Here Is What Happened [Live Training]
