A real estate investment team is vital to your success because everyone on your team will or should be a professional in a specific area and will contribute to the common goal of making money in real estate investing. Each individual will bring their skills and expertise to the table to help things run smoothly.
A team is needed because it is nearly impossible for one person to do everything that needs to be done to complete your investment goals. Each person on your team should know what the end goal is and each person should contribute their skills to work toward that one specific goal. Where you lack expertise, another person will contribute and vice versa.
A team is vital and a good team will help many investors in many types of situations come together to make money.
WHO SHOULD BE IN YOUR TEAM?
When building your team, you will want to make sure that you know your skills and what you are willing to do to contribute to the team. Next, figure out what areas you will need help in. Then, find the right people that will be able to help where you lack.
It is important to make sure that whoever is on your team will add value to your team’s common goals including yourself. If members of your team feel as though you are not adding value to the team, they may not include you in future projects.
The key members of a good team will include:
- Investor Friendly Real Estate Agents
You have to find the right agent who will do the things that you need done in order to be successful such as putting in multiple offers each week, posting your properties on the MLS when you are ready to sell them, submitting low offers, etc.
Your wholesalers should know your buying criteria and should be knowledgeable in estimating the repairs of a home and should know how to calculate the numbers so that when they present a deal to you, there won’t have to be any negotiations because the numbers are perfect.
- Title Companies
When searching for your title companies, you will want to find one that will be able to do double closings, close fast, and have low closing costs.
You will need at least one, if not more lenders on your team. A good lender will be able to trust you and would have built good report with you so that when you need funds fast, they will be able give it to you in no time and without any doubt. You can have a combination of private lenders, and hard money lenders.
- Buyers (Other Rehabbers)
Having other “go-to” buyers is vital because whenever you purchase a property and you may decide not to move forward with the project for whatever reasons, you can call up your buyer friends and sell it to them. Serious buyers are always looking to buy a property and if you property is a good deal, they will purchase it. If there is room to wholesale it, you will be able to make a profit from it when you sell it as well. Also, when having other buyers on your team, they may be able to sell properties that they pass up to you as well.
You will need a contractor that will be able to work closely with you. Your contractor will need to have fair or low pricing, will be able to work fast and get the job done in a timely manner, and your contractor will need to be trustworthy. Over time, if you treat your contractor right and pay them fairly, they will treat you right and when you both make money together, your contractor is going to want to work with you more than anyone else.
- Potential Partners
Running a real estate business is a 24/7 job. You may need a partner to handle the business while you spend time handling personal affairs and vice versa. A good partner would be someone that would bring to the table something that you may not have. For example, you may be an expertise in real estate, and your partner could be a millionaire to fund everything. Or you could have the money and know how to find properties, and your partner could be a licensed contractor.
- Insurance Companies
A good insurance company has experience working with investors and will understand your need for short term policies and less fees by starting and ending policies quickly and often. A good insurance company realizes that you just need the insurance to rehab a house and that you are not going to live in it.
There are others that may fit in your real estate team such as website developers, direct mail companies, freelancers, camera crew, etc. If it helps you be successful, they can be part of the team, but every real estate company needs the core members listed above.
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