Hi, it’s Lou Brown. I’m back with another of my 101 cash flow accelerators. And one of the things that are very important in having a successful real estate business is paperwork management. Sorry guys. This is a detail-oriented business. The paperwork does matter. Finding the paperwork absolutely matters and it’s important that you always can put your finger on it. One of the things I developed over time, you know, if you think about it, once you get into a real estate transaction, it can be quite thick over time and you’ve got the have different segments, to be able to find things quickly and easily. So I found these six-part folders that pretty much just show you what you can do with each one of these segments. So if you look at that one section, and if you start with this section over here, that’s the first section.
This is my buying section. This is where I put the contract, all the purchase documents, everything related to the initial purchases here. In the second section, I do teach trusts, land trusts, and personal property trusts. And so we have the trusts documents in this next section. The third section is the property taxes and insurance section. So anything related to that would be pinned into this section. The fourth section is the asset itself, the details about the asset itself. And you know in any information about that property, layouts for the property, surveys, appraisals, anything related to the property. And the final section is selling. Once we sell the property, purchase and sale agreement, everything related to it. Well, so over time I discovered what we needed in each one of these sections. So I created a system called business management where we actually give you a cover sheet for each one of these sections.
And each section has its own divider, its own relative information in there. And with the list that’s in that section, you simply check off what’s related to that. Now let me have that for you on a forms disc, I’m going to see if I’ve got business management right here. And sure enough, there it is. And this, this is a work of art. Let me tell you, it took me two years to write this. Business management baby. And this is where we have been able to put together how to layout your office, how to layout your files, your file folders, your step by step processes, your procedures, setting up your business right means you will have paperwork sanity and in a business with a lot of paperwork going on. That’s very important. Now the second thing that we have is a resident file.
So each one of our residents, there is a file assigned to them. So if you say, well this is the asset file that has the six sections in it, this is the resident file. Now in the resident file on one side, I would have all the information about that particular resident on one side. And on the other side I would have their rental agreement and everything that is relative to the current relationship that we have with them. So at any time a resident might move out, well at least we’ve got a full file on that particular resident. Their name doesn’t change, but who lives in the property does change. So that’s why we separate these two out. Even have two separate file cabinets for the asset versus the residents.
So hopefully I gave you some insight. All of the paperwork, the cover sheets, the step by step processes and procedures are all laid out in my business management system. You can find that by going to StreetSmartInvestor.com and click on tools and then click on volume seven business management. I hope this has been valuable to you. Paperwork Sanity is incredibly important in this business and we’ve learned how to do that and share that with you. If you like this, click like click love, share this and definitely subscribe. I hope to see you soon. Yeah, baby!
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