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Highest Leveraged Property Investment Activities - leads and measurement

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  • Highest Leveraged Property Investment Activities - leads and measurement

    An investor has a goal to purchased 10 cash flow positive rental properties by 31 December 2021.

    The number of properties purchased is a 'lag' measure. It is the outcome of an event that has already happened.

    1. What are the 'lead' measures, that can be influenced by the investor to achieve their goal?

    2. What are are most highly leveraged 'lead' measures that have has the biggest effect on your property investment?

    3. How do you measure the lead activities?

    For example, if your goal was to lose 10kg of body weight by 31 December 2020. Your weight on the scales in the lag measure which is the result of what you've already done. The 'lead' measures are those activities that directly affect the lag measure.

    In the example of losing weight, the lead measures are calories consumed, and number of calories burned through exercise (or an equivalent). Note: both of these activities can be effected by the individual, the individual is in control of them, and they can be measured.

    By measuring what is important, matters, and then causes a shift in the lag measure.

    Back to property investment. I've brainstormed the below activities, which the investor is in control of and can action.

    1. Savings Rate as a percentage of income
    2. Number of offers made on properties
    3. Number of incoming leads (opportunities) from real estate agents
    4. Number of property books read [increased knowledge]
    5. Conversations with property investors/developers [knowledge]
    6. Number of properties looked at
    7. Mail box drops
    8. Website views for “i buy property” website
    9. Personal website documenting what I’m doing - leads to opportunities to speak, profile and future offers unavailable to public

    Note: I'm not looking for an easy option here. I'm looking for where the goal setter should focus their energy and time.

    4. What highly leveraged activities would you add to the list?

    5. What would you say are your top 3 activities.

    I realise the overarching goal requires a strategy to continue to grow the portfolio and welcome any strategies. For example, sticking to one geographically location? Stick to buy, renovate, rent. Buy 3, sell 2 etc. This list is really endless.

    The goal, then act of the lead measurement is a strategy taken from a book called the 4 disciplines of execution. I'm reading it at the moment and finding it very practical.

  • #2
    If I would complicate my affairs to such point I'd be still renting. For me it was 1. do the numbers stack up? 2. do I have the money to buy? Getting 2 'yes'es - I buy


    • #3
      Originally posted by scoter View Post
      An investor has a goal to purchased 10 cash flow positive rental properties by 31 December 2021.
      So 10 properties in two years.
      On average, buy a property every two months.
      Just do that and you'll hit that goal.
      Organise your finance.
      Go to open homes.
      Make offers.
      Get that first property under your belt.


      • #4
        Thanks Bob. I get that buying a property every two months is the 'what'. I'm interested in the 'how'.

        And specifically, actions that I can take control and ownership of and measure.


        • #5
          You could measure any of (as Bob said):

          # properties shortlisted
          # viewings attended
          # properties where sufficient due diligence has been done
          # offers submitted

          If you put in a lot of offers, eventually you will have one accepted. In real life it wouldn't necessarily be one purchased every two months like clockwork. More realistically it might be nothing for 3 months (despite hard work and lots of offers) then 2 within a week!


          • #6
            A) View 100 properties , make offers on 10, contract with 3, buy 1. Rinse and repeat.

            B) Add value to your portfolio

            C) Network
            Profiting from Property, not People

            Want free help on taking your portfolio to the next level?