IMO, Two of the most important parts of my business model include Momentum &Tenacity. I truly wish I could tell you that I am constantly hitting the long ball at every at bat. That I am making huge money with every transaction. That every lead I get automatically becomes a sale with just the raise of my eyebrow or twitch of my nose like in the TV series Bewitched.

That isn't realty at all. It is a numbers game. My marketing plan would be at best a social experiment of about half dozen ingredients at any one time. Those ingredients do vary depending on a variety of factors. It isn't always easy to find that next transaction. If I would rely on the same systems that all the other local investors use, the places that are sky high - would only go higher.

That funnel feeds the rehab segment of the business model. That too is also fragmented at times especially when team members quit, move on or have scheduling conflicts. Getting help isn't always an easy task. Aligning my priorities with other people schedule is like juggling Jello.

The rehab function feeds a second marketing function. Renting places out has been incredibly easy lately. Yes, there are tire kickers and yes there are folks out there strictly believe it is my job to be at their service day or night. Most leads are not qualified for the place they are looking at. Find them a home that they qualify for. I find an honest resident orientation outlining expectations is incredible. I make it a point to let them know that I make a whopping 6% management fee on their home monthly. When you make it clear that I am making only $75 each month for keeping an eye on their home and there becomes a point where it is not worthwhile doing business, that perhaps they should consider moving before being asked to move. In an ironic twist though, I also let them know that many of our residents are with us for decades or until they pass on.

Some areas of business are easier than others and those easy areas move around. My last vacancy was filled before it was empty. It was empty for only four days between tenants. I have a second one that it is taking me about 2.5 weeks to have the place overhauled, but they have money holding it down. (So, they are going to move in the day before our next road trip - doing Cape Cod)

The property management aspect of the equitation is one of the most important. It is what keeps the wheels fully greased and moving freely. I need to thank each and every one of you on this and about a dozen other sites. Even when I hear, the system, the politics, the supply & demand, or even the numbers don't work here - I learn from you. Actually, those who make the most excuses, are the same folks that I learn the most from. As a retired Senior Chief in the military, it is so easy to see the difference between and excuse and a reason. Most every Veteran can see through it, but it is up each leader to figure out accountability and responsibility.

Then there is the 10,000 ft tall strategic business plan overseeing the various moving pieces. Making sure that things are moving in a manner that seems to move with ease. I assure you there is no ease in it. Currently I have a place I am selling under contract for the end of May. A place up for auction on the 12th, another for the 19th and a third one that I am just finishing up and getting ready to be marketed. As that completed value chain gets peeled off, I need to look at replacement properties. I would like to stay in the four states that I am currently invested in, in hopes of keeping my taxes as easy as possible.

With so many different segments and areas of operation - what could possibly go wrong? Just about everything could and has over the decades. Systems allow these parts to move freely. So now you might get a little clear idea that momentum and tenacity are so important to me. If you are not writing offers, you are not ever going to buy a place. Rejection is just part of the bigger picture. Be more afraid of a yes than a NO. You will have to act on a yes.

So what is important in your business model/plan?

Being more afraid of the yet hits home for me.

I remember being on vacation with the family 21 years ago. We went to a theme park. I was in the hotel room, ready to head out for the day's festivities when I got a call from my realtor.

We had 11 doors back then. My realtor told me that my offer on five duplexes went thru. I nearly doubled my doors with that one call.

I was excited!

Then it started to sink in and I started to get worried. I was (still am) small time and this was a big deal for me.

Well...

Ray, I understand the point your making. Just my two cents would be your plan depends on where you are on your rental property investment goal.

Through the years, the first thing I learned was that I can not think for a tenant as they have foreign "thinking." Therefore it's my way only, which cuts down on a lot of extraneous "stuff." Two further points on this are an empty unit is better than a bad tenant and do not hesitate to evict for none or late or slow rent.

You also need to explain to tenants that the reasons rent increase is due to government and insurance. If repairs are done with a tenant present, add this too as good work is not cheap.

Pay for professionals when you think something needs to be done, ie: attorney, C.P.A., and repairmen.

Keep a good cash reserve in a money market account along with a good relationship with a repairman/contractor and self-insure.

The above has done well for me for three plus decades in that I am now retired and able to live comfortably on rental income only.

Keep your mind flexible to ideas and your body in the best health you can.

"That every lead I get automatically becomes a sale with just the raise of my eyebrow or twitch of my nose like in the TV series Bewitched."

I can't get the picture of Ray in a genie outfit out of my mind. LOL.

RICK - I like to read what you post. Do you really self insure? No insurance on your rentals? Not even liability?

ZERO - I am small time but I am content with what I have. If I can just get things paid off, I think I would have it all.

Bonanza NC,

Bonanza, you are bigger than me.... well only in the business model. I am bigger in body size.

I started to look into self insuring. The biggest problem was liability. Finding a place that will insure only for that wasn't cost effective.

Have a couple places I could do it with I guess. Mother-in-law lives in one. Paid off. She won't sue me, but what about someone getting hurt on the property, even if they are idiots? Paying a lawyer all out of pocket, even if you win?

Ray, you're definitely a go-getter and you are very smart in the business.

I'm out of rentals now, but my single most important metric was "number of unscheduled service calls". I would inspect each of our houses at least twice a year and see if the tenant had any issues, maintain the furnace or A/C, and keep a log of any things I may need to watch in the future. I would take care of most things during these...which are SCHEDULED. I was a licensed home inspector for 7 years, so during these visits I would be able to check nearly everything in 25-30 minutes..including walking on the roof, checking chimney, all faucets and toilets, open/close all windows, check all appliances, run all ceiling fans, check to see that doors close and open ok, etc.

But the things that bothered me is like the time I was at a Survivor concert outdoors downtown and I got a call at 10 pm that the toilet was backing up and the house only had one bathroom...so I cut the concert short and was unclogging a toilet at 11:15 at night. Turns out they were putting paper towels down there with dog doo-doo...so I charged them appropriately. I detested getting a call saying that something wasn't working to the point that I had to drop everything I was doing to go fix it.

I worked very hard to keep our "B" houses in excellent operating condition, and my best years were ONE unscheduled service all covering 5 houses. Out of the 15 years we had rentals...I hit that 11 times. The worst year was 5 calls.