The age-old question…what is more important to you? Your time, or your money? Let’s talk about how this applies to real estate. Examples, Watson!
Buy a lead generating website for $100/month vs spending five hours a week on social media interacting
Hire a virtual assistant vs ten hours a week maintaining a database and customer relationship management
Bring on a showing agent vs twenty hours a week spent riding around with buyers
Now, the questions above aren’t necessarily either/or, although I made you answer that way. What you should really think about before deciding between purchasing versus developing on your own is how much money do you make an hour? This is a pretty simple calculation. Take your total earnings and divide it by how many hours you work per year. (Start with hours in a week and then multiply by 52, taking out vacation time, to make it easy.) Once you have calculated your earnings per hour, this will help you to figure out how to invest your time and money.
Say you are worth $100 per hour (we all know it is more). You have a marketing tool that you can buy for $1200 for a year, or you can take six hours a month on your own to accomplish the same task. The income from this tool will be $4000.
Time: 6 hours/month @ $100/hour = $600/month or $7200/year
Income: ($4000) – Time ($7200) = LOSS of $3200
Income: ($4000) – Money ($1200) = PROFIT of $2800
This is an extreme example, but I did it to prove a point. An upfront investment might be tough to consider at first, but you have to play the long game. How much is it really costing you in the end? How much is your time really worth? The truly successful in real estate treat it as a business and think in the long-term; not just what the next transaction is going to be.