Real Estate Team Members
Tips for Finding the Best Members for Your Real Estate Team
Most people try to build their investment business on their own. Do not try to do this alone! A truly successful investment business requires a talented team to help your business grow and become extremely profitable. The best real estate teams always win rather than people who try to do it solo.
The best leaders will surround themselves with the smartest, most diverse, and most driven people they know. Building a team can be kind of intimidating but it is important at every stage of your business, especially the beginning. Start the right way with a team and then grow your team and business over the years to become way more successful.
Gathering Your Dream Team
It is very important to perform extensive due diligence when you are putting together your real estate team. Make sure you don’t go with the first person you find. Gather up a bunch of possible candidates for each position and interview them and gather references. Then contact the references and previous employers or clients. You can find potential team members by asking your friends or fellow investors for recommendations. Just be careful, if you hire someone who is incompetent, it could cost you time and money.
First things first. Before you hire team members, it is important to determine your niche, market, and business strategy. You must have a good plan in place and have a clear strategy to reach your goals. It won’t matter if you have the smartest team in your city if you don’t have a clear plan.
Flipping, wholesaling, and buy and hold strategies are all great investment methods. Make sure you have a relevant team of competent people working for you and your strategy. Below is a list of some of the team members you might consider hiring.
Accountants are very important for helping you save a lot of money. If you are lost on where you’re at financially, it can be hard to make money. Try to find an accountant with knowledge in real estate. They will be able to help you analyze any deals you are considering and save you a lot of money when tax time comes around.
Accountability Partner or Group
It is a great idea to have a business partner in all of this. Find somebody, whether it’s a friend or a real estate mastermind group, to help you stay accountable. This will continue to keep you attaining your goals and perform your strategy successfully. Check in with these people or groups at least monthly.
An administrative assistant will be the person answering your calls and emails and forwarding them to the correct person. This will keep you away from unneeded phone calls. If your assistant is in-house they can help with keeping data updated on all of your properties.
To be successful in your investment business, you need an attorney. Good legal counsel is important for making sure that your paperwork is right, eviction processes happen legally, and that any possible lawsuits are shut down before they become a problem.
Bookkeeping is a very important part of the process. Hiring a well-versed bookkeeper who is knowledgeable on your type of real estate investing can be extremely valuable. Organization is key in this business and a bookkeeper will help make sure everything is organized how it should be.
You probably won’t need a cleaning company when you are first starting. They come in handy when you are ready to list your rental after you’ve rehabbed it. Make sure that you find a company that you trust and can count on to repeatedly give you their business as your portfolio grows.
There are a lot of things that you can do on your own when managing your real estate investments but electrical work is not one of them. If you do not know how to do the electricity in your property, do not try to DIY. Make sure you hire a professional electrician to perform all of your electrical work. It is a safety hazard and a legal hazard if the wiring is hooked up incorrectly. Paying the pros to do the electric will save you a lot of time, money, and headache.
Unless you are one, it will become crucial to hire a general contractor who is well-versed in construction when you start rehabbing properties. General contractors are super valuable to your team so pay them a sufficient amount and make sure that you are transparent on your expectations as far as money and project timelines.
Most of your daily property management will be dealing with small repairs and fixes in your investment properties. It can get expensive to hire a big company to come and fix the problem every time a tenant is locked out, a fuse blows, or there is a plumbing problem. A handyman can save you a ton of money and headache but make sure you can rely on them to do the job right and in a timely manner.
Hard Money Lender
Finding a hard money lender that you can trust will definitely help your investment business thrive. Hard money lenders use the value of your real estate property to determine the loan amount and rate. It isn’t a good idea to use hard money lenders in every situation but they are very useful for when you need them. Decide if you would rather go this route or if you’d rather go with a private lender depending on your goals and strategy.
Find an inspector with some kind of credential or license. It is preferable that they have a credential from a state licensing agency. If your state doesn’t license inspectors or you can’t find someone that has a state licensed credential, look for candidates at the American Society of Home Inspectors. These inspectors had to have completed at least 250 home inspections along with other experience. Licensed inspectors might be more expensive but it is worth it. They will help keep you from investing in a property that will end up losing you money.
There are a lot of different kinds of insurance agents and brokers. Some of them insure investment properties and some insure properties you are planning on flipping. Look for a local, hands-on agent that can help with all of your insurance needs.
A leasing agent is important for getting your property onto the market for people to see. These agents will post rental listings, handle your showings, and underwrite any tenant applications. They should also be able to supervise move-ins or exits and lease renewals and contracts. Finding a good leasing agent will help your business run smoothly and successfully.
Marketing is one of the most important things with your real estate investment business. Do not cut corners when you are picking your marketing coordinators. They should be able to implement an effective and strategic plan in order to get the word out about your property and get the money coming in.
This might just be the most important part of your team. Finding someone who has accomplished what you want to accomplish is so important in becoming successful. Make sure they are willing to teach you what they know and be sure that you are willing to listen, learn, and help them achieve their goals as well. You both should benefit from this relationship and help each other.
Pest Control Company
Do not wait for pests to take over a property to find a pest control company that you trust. Whether there are mice, roaches, bed bugs, etc. you should be able to have someone on speed dial for when this happens. Someone that you can trust and that can help you reliably in the future. Don’t forget to do your research before hiring.
Sometimes there are plumbing problems that are above what your handyman might be able to fix. That is where a professional plumber comes in handy. Do a lot of due diligence and make sure you find someone you can trust. Make sure you are building good relationships and take care of everyone.
Private Money Lender or Equity Partner
A private money lender is any non-institutional individual, which means not a bank, or company that loans out money. These private loans are usually secured by a note and deed of trust and will help you fund your real estate transactions. Usually your relationship with a private money lender will be better than that of a hard money lender. A private money lender will be able to provide you with the earnest money to secure an investment deal. Make sure that you can trust this person.
A good property manager can be priceless. A property manager will run the day-to-day of your investment business. They will supervise and maintain your properties. This might include a specific apartment complex or a group of single-family homes. Typically, they will supervise and coordinate other team members like leasing agents or maintenance vendors. Most things will filter through your property manager especially including tenant communication.
A title company will ensure the legitimacy of the sale of a property. Find a title company that you like and continue to do business with them. Build good relationships. When they realize you will bring repeated business to them, they will be more likely to go out of their way to help you.
A successful investment business will have multiple strategies to find good deals and investment properties. Wholesaling should be one of your many strategies. Find a few wholesalers that work in your niche and work with them.
Assemble Your Real Estate Team, Start Investing
Now that you know all of the team members that will be valuable to your investment business, it is time to start looking for potential candidates. This list has a lot of good recommendations but depending on your type of real estate investing, there might be some members that you need that aren’t on this list. Although real estate investing is commonly viewed as a solo career, it is important to have a team that you work with to be successful in your endeavors.