A man is rich in proportion to the number of things he can afford to let alone.
– Henry David Thoreau
What is Outsourcing?
Outsourcing is the new way of doing business – the term did not even become common to the English language until the end of the 1980s. It means delegating regular business tasks to a third party.
Since we all have a limited number of hours in a day, in order to achieve our business goals faster we need to distinguish our actions in 2 different categories:
1. Money making activities – activities like looking for more properties, writing new sale contracts, networking with possible buyers;
2. Non money making activities – filing, posting advertisements, writing flyers, newsletters, setting up websites.
Too many investors waste important time in non money making activities, which are necessary, but they should concentrate their efforts in making money. The non money making activities can be delegated to competent third parties at a fraction of the cost that would take you to dedicate your time to the same tasks.
Your time spent on looking for properties and writing sale contracts could be equivalent to making a profit of $200 an hour or more, while the cost of outsourcing to a third party is only a few dollars an hour.
You also would have more time to pursue the interests and hobbies that you have set yourself up to: that is why you joined real estate in the first place – to have more money and time to do the things that are really important to you.