Building Your Team
April 1, 2019
For many new investors the whole concept of real estate investments can be intimidating, even for the most basic business plan. Building a team of good quality players will give you confidence throughout the investment process. Here is a simplified roster of the 4 team members that will make your business a championship team. It’s critical to have these players in position before your game starts. Here is the list of the 4 basic investment components needed for your team.
- Finance (short & long term)
- Acquisition (buying)
- Rehab and repair
- Exit plan (resale or rental)
Knowing upfront your purchasing power and time frame will dictate the scope of your project. Keep in mind that all lending institutions are only as good as their loan officers. Make sure that the loan officer that you will be working has great recommendations. Take good time to do your research to find the best person for this role
Find a qualified specialist to assist with buying your investment. You would not take your car to a tire shop if it needed breaks, the same applies here. Find yourself a good wholesaler who has ties to many different sources for discount properties including probate attorneys, banks, auctions, divorce attorneys as well as the MLS. Utilize your network and ask around for people they might recommend.
Rehab & Repair:
This is the most challenging of the group. There is always the problem of turn over. A licensed and bonded contractor is the safest way to go. The registrar of Contractors: https://azdirect.az.gov/registrar-contractors, can provide information to help you make a calculated decision. Whomever you consider, do your research online and find reviews. If they’re a well-established contractor, past clients will have looked to the web to sing his/her praises, or make sure everyone knows they’re not someone to work with. Use the internet to your advantage.
Before the project is complete, you need to interview some local realtors with the skill set to move your property for top dollar in the fastest amout of time. Choose a listing agent with a well-designed marketing plan including extensive Social Media to market your investment property. In today’s market, it’s all about marketing and many agents talk a good game, but look at how they have marketed other properties and choose wisely. Also consider visiting that agent’s Facebook page to see how they interact with their own followers.
Every real estate deal that has gone bad had a break down in one or more of these team members. Whether it’s “I bought it wrong,” “the rehab went over budget,” the profit was eaten up in a bad loan, or “I just couldn’t sell it,” it all comes down to the TEAM. Dedicate time to finding the right people to involve in your business. Taking a shortcut in identifying a good group will likely mean you’re hiring people who take costly shortcuts, as well. Building a successful business starts with building a successful team.