Building a real estate investing team is essential to achieving success in real estate investing. Some of the best real estate investors understand the real value that a team can add. You can’t be everywhere or doing everything at all times. This is where your real estate investing team comes in to help.
What is a real estate investing team?
A real estate investing team is a collection of professionals with whom to work closely with prior to, during, and after purchasing real estate investments. The real estate investing team helps with sourcing deals, financing, the due diligence process, and helping you manage your real estate investments. As you continue to build your real estate portfolio, having an established team can help you save valuable time and money. The key to a building a successful team is finding reliable people. Build a solid team of professionals that you can depend on.
Why should you build your real estate investing team?
A complete real estate investing team guide requires mentioning the importance of building a successful real estate investing team. Everyone has different real estate ambitions and goals, but whatever yours are, you stand a greater chance of achieving them with the help of your core team members. You should view your real estate investing team members as business partners who are essential to helping you achieve greater success in your real estate investing career.
Who are the key members of a real estate investing team?
Make sure you find the right team members. The following is a list of key real estate investing team members:
- Spouse or Significant Other
- Real Estate Agent
- Lenders
- Contractors and Handymen
- Bookkeeper
- Accountant
- Lawyer
- Insurance Agent
- Property Manager
Let’s break down each of these real estate investing team members one by one.
-
Spouse or Significant Other
Your spouse or significant othe r plays an important role in your real estate investing success. Being on the same page with the individual you spend the most time with can make or break your success. The reason it is important to be on the same page with your spouse or significant other is because this individual has a huge impact on your free time, decision making, money, thoughts and ambitions.
-
Real Estate Agent
A real estate agent is a key member to your real estate investing team. A great real estate agent will help you find deals, bid on your behalf, understand the real estate marketplace, and transact. Real estate agents can act on the behalf of the buyer or seller. Traditionally, real estate agents are paid a commission (around 6%) by the seller of a property. Therefore, if you are looking to add a real estate agent to your team to help you buy property, it will be free for you. Keep in mind not to work with just any real estate agent. Try finding a real estate agent that is investor savvy or has worked with other real estate investors in the past. Your real estate agent will have access to the Multiple Listings Service (MLS). This will allow you to access the latest property information available when evaluating the local market. One final note to keep in mind when selecting a real estate agent to add to your team – make sure they are responsive, honest, well connected, and amicable. Get referrals from other real estate investors, local real estate meetups or forums.
-
Lenders
Building relationships with conventional and private money lenders is wise for any real estate investor. Lenders can range from small community banks or credit unions to large national banks. Mortgage brokers and mortgage companies are also suitable options. Additional options for financing can be through private or hard money lenders. Regardless of which path you choose to take if or when you finance your real estate investments, the important takeaway is building relationships with a variety of lenders is a great move for any real estate investor. Start building relationships with these lenders now, so when a great opportunity presents itself, and it will, you’ll be prepared with the appropriate financing.
-
Contractors and Handymen
Adding contractors and handymen to take care of repairs is critical for any real estate investor. To find these individuals you can ask for referrals from other real estate investors or team members, check Craiglist.org, or search AngiesList.com. Make sure you check their references. Ask your contractor’s references if they showed up on time and completed the work they said they would. Did they do a good job? Are they trustworthy? Additionally, keep in mind that the most affordable option may not be the best option. It may take some searching to find the right contractor, so be patient. Remember, you’re building you’re A-team.
-
Bookkeeper
You may want to hire a bookkeeper to help keep an accurate record of incoming credits and outgoing debits. A bookkeeper can help you track income and expenses, and help prepare your finances for tax season. An accurate account of expenses and income is important, and as you start generating more wealth and have more properties to account for, a great bookkeeper can be handy.
-
Accountant
Adding a certified public accountant (CPA) to your real estate team is a smart move. A professional accountant can help prepare your personal and business tax returns, and can offer you solid advice and tax recommendations. Try to find an accountant who has worked with other real estate professionals or who is real estate savvy. Find this team member as soon as possible, because a good CPA can help you choose the best tax-saving strategy for real estate investing.
-
Lawyer
A lawyer is an essential member on any real estate team. A great lawyer can help draft and execute legally binding leases and other real estate documentation. Try to find a lawyer that understands real estate or has worked with real estate investors in the past. A real estate lawyer can help you select and set up the best legal entity for holding your real estate properties.
-
Property Manager
A good property manager is an invaluable asset to your real estate investing team. From screening tenants to managing property related issues, a property manager can help relieve you from some of the most time consuming and arduous tasks. Do a thorough search in order to find a great property manager. Remember to check references.
When should you build your real estate investing team?
You should begin your real estate investing team as soon as possible. The value your team multiplies as you build your professional relationship. These individuals are your teammates, and identifying these key individuals early on can help you achieve success faster. Your real estate team can help during the due diligence period before purchasing.
Where can you find the members of your real estate investing team?
There are many places to find team members, but some great places to get started are by asking other real estate investors. You can find other real estate investors by attending local real estate meetups (I recommend Meetup.com), real estate forums (my favorite forums are on BiggerPockets.com), Real Estate groups on Facebook or LinkedIn, or by asking local real estate agents. Real estate investors work closely with the real estate investing team members you are looking to find as well. As you identify real estate investing team members, ask to see if they have real estate investor friends in their network.
About the Author:
Dave LaPlante is a real estate savvy online marketer with passion for areas that include real estate investing, sales & marketing, productivity, and self-improvement. Dave lives in San Francisco, CA and looks to connect with like-minded individuals. Fun fact, Dave reads a book every day.
