How to Build Successful Real Estate Investing Team

“Alone we can do so little; together we can do so much.” This is a famous quote by Hellen Keller. This idea applies in all aspects, including real estate. What most people do not know is that real estate is a team sport. Almost all successful real estate investors have a team on their backs that help them make deals happen. If you are a prospective real estate investor, you will need to build your team. Today, we will help you on how to build a successful real estate investing team. Learn who your key team members should be, how to select the best ones, and what should they bring in the team.

Before you jump into hiring team members and performing due diligence, there are a couple of things you need to determine first. Your niche, target market, and investment strategy. These three things are important as they will help you build a strategic and realistic plan based on what you are focusing on. Having the smartest people around you will not matter if you and your team members do not know what should be working on.

How to Build a Successful Real Estate Investing Team: Key Team Members

Here are the people that need to be on your team and what they can bring into the team:

Real Estate Agent or Realtor

There will not be any investment without a deal. Thus, you will need a great deal finder. In most cases, real estate agents are the best deal finder. How? They have access to off-market deals and other inside property information. In addition, they are the only people who have access to Multiple Listing Service (MLS). MLS is an extensive electronic database that consists of all properties in and off the market affiliated by brokers. This is a reliable source of the property information as it is updated regularly.

Using this database, a real estate agent can easily source deals for you without a sweat. Besides, they can bring potential investment properties for you to choose from. Thus, you need to find the best and right real estate agent.

Property Manager

The next important person is your property manager. He/she will be the key to your investment growth as he/she will be running day-to-day operations of the investment. The property manager’s task includes but is not limited to supervising multi-family units, collecting rent, finding, and screening tenants, and tenant communication. Everything goes through this team member. He/she knows where to buy, where to rent, who, and where to run to.

Choosing a property manager is critical. This team member will make or break your investment. A good property manager should be responsive and reliable when you need him/her. Hence, make sure to hire someone that has experience and a good reputation.

General Contractor

Up next is the general contractor. A good contractor is probably the hardest to find. Whether you are flipping a home, cleaning out a foreclosure, or renovating the property, you need to have the right contractor for the job.

A good contractor should understand your visions and should be reliable. If they know your expectations and plans, they can help you save thousands of monies. This is important especially when you are flipping a home. Rehab and turn costs can be expensive. The job will be done smoothly if the contractor understands how you operate. Hire someone who gets things done in the timeline and under the budget. It will also be best if you can negotiate with your contractor.

Property Inspector

As mentioned earlier, the repair costs can be expensive. Especially when done incorrectly. Property inspectors are responsible for evaluating the properties and checking if there are infrastructure damages, malfunctioning systems, and safety hazards.

A good property inspector will be honest with you as to what needs to be done. On the other hand, the bad one will cover some damages and miss out on them. Remember, even the slightest detail is important as it may make a huge impact in the long run. It will be best to hire someone with experience, preferably the one that is used to be an engineer or a contractor. Furthermore, hire someone that has a good track record and credential. A property inspector that has a state licensing agency will be better. If there aren’t any, you can look from the American Society of Home Inspectors. Typically, they charge a bit higher, but it will be worth it.

Insurance Agent

The insurance agent is also a vital real estate investing team member. You will need to ensure your investment properties. Find someone who will always look out for you when things get out of hand. Find a local and reliable insurance agent that can help you find the best insurance policy based on your needs.

Other Team Members

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Now that you know the key team member you need to build a successful real estate investing team, there are still other team members you can consider including in your team. They are:

• Real Estate Attorney – You will need a good legal person in making sure the paperwork is right, the eviction process is legal, and someone that will handle potential lawsuits.
• Accountant – An accountant will help you keep good records of your real estate investments and taxes.
• Cleaning Company – This team member can be helpful especially if you have multi-family units. You will need someone who will clean the properties regularly and will take care of turning over the rental units when someone leaves.
• Electrician – Wirings are workloads that need to be handled by a professional. You would want to keep your investment properties safe from incorrect wiring and potential legal hazard.

Conclusion

Now that you know the team members of your real estate investing team, it should not stop there. Education is still the key. Doing constant research and educating your self will be the key

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