Real Estate: The Family-Friendly Franchise Business
Find the right real estate system to generate multiple streams of cash through real estate.
Experts estimate 80% of all new businesses fail, but 60% of all franchises succeed? Why is that? One word: Systems.
Franchises, by definition, operate based on a proven system. McDonald’s has a 200% turnover in employees, but their inability to recruit and retain employees does not affect how their burgers taste. Whether you buy a Quarter Pounder in Paris, Texas or Paris, France, it will essentially taste the pretty much same – give or take slice of gruyere.
Starting a business costs money. If you start a business from scratch, you can easily invest thousands of dollars and it can take your business years until it’s finally profitable. And that’s if you’re lucky enough to be in that 20% of businesses that survive. If you prefer to buy a business that’s already turning a profit, expect to pay hundreds of thousands of dollars. Heck, I just read an article in the Wall Street Journal that Dollar General and Dollar Tree are in a multi-billion dollar battle to buy Family Dollar.
According to a recent Fox Business article, there are 9.1 million women-owned businesses in the U.S., up from 8.6 million in 2013. But women-owned businesses still account for less than one-third of all businesses in the U.S. This disparity is due, in no small part, to lingering beliefs (and the subsequent guilt) that a woman’s primary role is managing the house and caring for the kids. The two worlds of business and family collide as would-be entrepreneurs and mompreneurs struggle to balance the two.
I would submit to you today real estate is a business women can enter without feeling like they have to compromise the integrity of the family unit. For me, that’s part of the magic of real estate.
Unlike most business, the real estate business doesn’t always require an upfront cash investment. That’s because there are multiple ways to enter the real estate business and various jobs you can perform that don’t require you to empty your pockets or work a 9 to 5.
Successful businesses know how to find the most ways to generate cash flow from its products and services. Think for a moment about the movie industry. They release the movie to theatres for a few months. When ticket sales come to a halt, the movie “goes to video” for those folks who didn’t get a chance to see it in the theatres. It’s available for streaming and DVD rentals. Then the film goes to cable before landing on network television. Some movies have comic books, action figures, themed toys and other licensing revenue coming in. They do everything they can to make money off the movie before it makes its way to television. Think of real estate in the same way.
When you treat real estate as a franchise business, the magic of real estate emerges. You can take advantage of all the different methods of acquiring property, flipping it and making income just like any other business. But do it working a proven real estate system. I learned this valuable lesson over the years. I’ve bought and sold over four hundred properties. One thing I learned is the real estate business is really not that different from the insurance business. I had the same costs, pay roll expenses, marketing costs, sales costs, accounting and legal expenses, office expenses and so on.
I even give myself production goals – quotas. I decide how many houses I need to buy per month and how quickly I need to sell the houses to minimize my cost and maximize cash flow. Isn’t this the same core challenge all businesses face? The difference between real estate and insurance, you can learn as you go with real estate. The insurance business requires you to be quite knowledgeable before you start in the business.
With this in mind, my goal was to make the onboarding and startup process for GIC Deal Finders as simple as possible. I want my members to ease into the business and make money while they learn. I always say, the only people who do not like real estate are those who have no clue how to make money in real estate. Don’t be one of those people.
Over 3 million properties changes hands yearly in the US, each one an income stream for an individual or institution. How many of those will you lay claim to?