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Building Wealth through Building a Team

· Real Estate,Team Building,Wealth

One of the keys to real estate is to have a team of highly skilled professionals that can guide you through the real estate process.

There are many facets of real estate and it’s almost impossible to be skilled in every one of them.

Having a team that you can call, whatever the situation might be, is priceless.

Putting the work into getting the right real estate team will really pay off down the line when sh*t hits the fan.

Plus, it's just flat out annoying to work with unreliable people, and it can cost you a lot of time, money, and most importantly sleep! 😴

So, how do you start gathering your team together?

Should you go to Craigslist and blindly pick out a professional from a crummy ad they put up in 2 minutes?

HELL NO!

In fact, I have heard some horror stories from people I know that have done this.

As a real estate investor, you want to do everything at the “wholesale” level.

Don’t get me wrong, Craigslist is great and is a very useful tool, but there are a lot of shady people out there that prey on people through Craigslist. So, be cautious when using the world's biggest free to use marketplace.

There are other platforms available that provide a much safer way to find contractors, such as Angie's List, HomeAdvisor and my new favorite, Thumbtack. However, as a real estate investor, you want to do everything at the “wholesale” level. So, while these services are great they also could cost you a little more.

So what’s the best way to get started? Start with a referral.

What I have found best that works for me is referrals from friends, colleagues, and mentors.

Note: I would suggest finding your realtor first and then utilizing them to fill out the rest of your team. Most realtors touch multiple professionals involved in the real estate investing process on a daily basis.
 

The best people to have around are the ones that are recommended by people you already trust. It’s the same way you do any kind of purchase.

Let's look at an example:

  1. Your notice that your neighbors just had new flooring put into their home.
  2. You ask them more about it (the pricing, installation process, how long it took and so forth).
  3. Your neighbors share the information with you – referring you to their contractor who performed the work.
  4. You then contact the contractor to perform the same services for your home.

See how simple that is? As a matter of fact, you probably have been doing it all your life and didn’t think to apply it to your real estate business.

 

So, now that we got that figured out, I am sure there are still some of you saying "I don’t have any friends, colleagues, or mentors in real estate. "

  1. Your notice that your neighbors just had new flooring put into their home.
  2. You ask them more about it (the pricing, installation process, how long it took and so forth).
  3. Your neighbors share the information with you – referring you to their contractor who performed the work.
  4. You then contact the contractor to perform the same services for your home.

See how simple that is? As a matter of fact, you probably have been doing it all your life and didn’t think to apply it to your real estate business.

So, now that we got that figured out, I am sure there are still some of you saying "I don’t have any friends, colleagues, or mentors in real estate. "

Sure you do!

Do your parents own a home or, for that matter, does anyone in your family own or rent a home?

Anyone who lives in a home plays part in the real estate game (though they may not be aware of it).

In most cases, if you own a home, you had a realtor close the deal for you, or a maintenance guy fix something. So, if you keep real estate in your topics of conversation, eventually you will find someone that can recommend you a real estate professional.

But who are the real estate professionals you need on your team?

It is vital to know the professionals who are critical for the survival of your real estate investment. Here is a list of real estate professions that would be beneficial to have on your team:

● Real Estate Mentor

● Realtor

● Accountant

● Banker

● Investor/ Hard Money Lender

● Attorney/ Lawyer

● Property Manager

● Project Manager/ General Contractor

● Handyman

● Construction Trade Specialists (HVAC, Electrical, Plumbing, Structural)

Note: This is not an all inclusive list and not every profession listed above is needed in every real estate strategy.

So how do you know which of these professionals to bring onboard?

First, you should identify the skills required to complete your real estate investment strategy.

Once you know the required skills then you should determine the skills you can bring to the project yourself (your strengths), and the ones you are not experienced in (your weaknesses).

Then, you can solidify the services you need from third party professionals.

For instance, if tracking the financials and tax planning giving you a headache?

Don’t worry, bring an accountant on board.

I need funds to fund my plan?

A banker or hard money lender will sort you out.

The foremost thing you will consider as you build a real estate investing team is the expertise and talents that a professional contributes to the team, otherwise, it would be redundant to bring onboard someone that adds little value.

Most importantly, you should look for professionals with integrity and whom you are comfortable with. You don’t need somebody who might become a liability to work with.

Remember, hiring and firing are expensive and take effort, so “Hire slow and fire fast.

What do you do once you have a team?

Once you have a dream team, it's your role to captain the ship.

I have found out that it is best to integrate the different professionals into a single team. The key thing, is that all the team members should understand their roles and how they should work with me to realize the goal.

The key to getting the best out of your real estate wealth building team is to have set clear and actionable objectives.

Basically, the simplest yet most important thing to do before anything else is to set your goals and a course of action to obtaining those goals.

When you have a vision, the team will help you realize exactly that.

Examples of how the team might help you in critical areas:

If you are interested in a certain market, your realtor will help you identify the most profitable opportunities.

 

On tax matters, your accountant helps you set up the most optimize real estate investing entity. Losing out on tax benefits that come with owning real estate can really cost you in the long run.

 

How would you protect your investments or deal with liability questions without involving your attorney? For an all-round protection, your attorney and your accountant should always operate from the same page.

 

Now that you are armed with realistic, achievable information, you can now move forward with selecting and launching your very own wealth building real estate investing team.

 

How do you go about building your real estate investing team?

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