6 Rules to Have a Successful Real Estate Investment Business


This article will discuss how to apply the principles of the E-Myth to your Real Estate Investment Business. The E-Myth is a myth that says that small businesses are started by entrepreneurs (the E in E-Myth) risking capital to make a profit and it doesn’t matter if you get money from a lending company or that’s your saving. The author Michael Gerber suggests that this myth rests on the fatal assumption that if you understand the technical work of a business, you understand a business that does that technical work.

This fatal assumption leads real estate agents, carpenters, electricians or plumbers become real estate investors because they know the technical work of real estate investing. They understand how much repairs will cost because they could do the repairs themselves. What most would regard as their greatest single asset is actually a liability. It is a liability because you are working in your business as opposed to on your business.

6 Rules to follow to make sure you are working on your real estate investing business and not just in the business:

  1. Develop a model that provides consistent value to your customers, employees, contractors, and lenders beyond what they expect;
  2. Judge potential employees and partners by their ability to pass the real estate licensing exam, not by whether they are a top producer or how well they “fill in the blank”;
  3. Have an order in your real estate investing business;
  4. Develop an Operations Manual;
  5. Follow the Operations Manual to provide uniformly predictable service to the customer;
  6. Pick a uniform color, dress, and message.

Developing a Business Model

In running a real estate investing business, instead of Location, the focus would be Systems. In developing your system you must see your real estate investing as a business for producing results for the customer. Use the investment calculator. If you are flipping houses then your customer is the end buyer, however, if you are buying to hold and rent, then your customer is the tenant. All roads should lead towards profits to you as the business owner. You can reverse engineer your systems by focusing on the desired result for the customer.

Developing a Business Model

Top Producers Need Not to Apply

Your model should be dependent on your systems that are in place, not the individual itself. You would not need to hire brilliant salespersons or property managers. Real estate investor should choose the right direction and create a brilliant system through which good salespersons or property managers could be leveraged to produce exceptional results also known as profits.

Order in the Court

Your files should be organized and kept clean. You can obtain order through your systems. How are tenant files organized? When you receive a phone call for a potential lead what is the next step? Are files easily organized to facilitate obtaining feedback and being able to follow up on potential leads?

Operations Manual

Your systems should be documented so your staff can open up the operations manual and know exactly the steps they should follow. Without the operations manual, you cannot create the consistent results that you hope to achieve.

Trade Dress

Who buys ugly houses? Real estate investors prefer modern houses with a creative or classic design.


In conclusion, I am suggesting that it is not about being a better real estate investor. The quest to be the greatest investor of all time is the “Technician” in you trying to come out and run the business. It’s about creating a better system for providing consistent results to your tenants or end buyers. Your system is comprised of scripts, investment criteria, tools for lead generation, checklists, brochures all which help you to generate profits in real estate investing.

Leave a Reply

Your email address will not be published. Required fields are marked *