I’ve been investing in real estate for so long that most of the process is second nature to me. When I aired Come With Me parts I and II last week, I didn’t stop to consider that the same wasn’t true for most of my listeners. A lot of information I take for granted isn’t common knowledge. This week’s show attempts to remedy that by delving deeper into the most important topic of last week’s show: assembling your real estate investment team.
When compiling a team, the single most important attribute to look for is trust. Most people don’t have a loan officer, a real estate agent, a property manager, a contractor, and a bookkeeper all in their personal network of friends. Becoming a real estate investor requires you to build a team of strangers and forge trusting, business-centric relationships.
Even if you happen to have such individuals in your personal network of friends, it would be unwise to use any of them. Business relationships can be very taxing on personal relationships, and it would be a shame to lose a friend over a business deal that went sour. Also, your personal feelings toward an individual can cloud your judgment and make you blind to their faults. The best way to ensure you’re getting the best possible person for the task is to start from scratch. This will be a long and research-heavy endeavor, but the payoff is tremendous.
Fortunately, the Internet makes it easy to research for potential business partners. Finding virtually every persona involved, from agents to mortgage companies to contractors, is as simple as searching Google. Most search engines also have built-in reviews for businesses, which is a great resource, although one should use discretion when consulting these reviews. Gaming the system is extremely common, and oftentimes irate customers can try to tarnish a decent business’s reputation. If a review seems unusually negative or positive, it’s best to ignore it. Also, services like Angie’s List are hard to game and offer verified, user-created reviews of businesses. Whatever resources you choose to use, just be sure to get an early start on researching potential business partners.
Once you’ve compiled a list of potential individuals, it’s time to meet them face-to-face. Let your instincts be your guide here. Assess whether they seems reliable, trustworthy, and competent. Their presentation and mannerisms will betray a lot about their character. And don’t hesitate to ask for references. If they are savvy and competent, they will have an entire network of business partners and won’t hesitate to let you consult with them.
Investing in real estate is a massive endeavor. While it can seem daunting, it should never feel overwhelming. As an investor, you will be liable for hundreds of thousands of dollars in debt on the various properties you own. With so much money at stake, it’s crucial that you have the best possible team behind you. And with so many aspects to each transaction, from the agent’s side to the mortgage broker’s side to the contractor’s side, it’s impossible for anyone to have the level of competence necessary for success in each area. You simple must have a team of people you can trust who can navigate these different and oftentimes confusing industries.
This blog only scratches the surface of information covered on the radio show. As always, you can check out the show in the archives. Stay tuned over the coming months as I cover other aspects of investing and dive deeper into the details, and if you have any questions or topics you’d like to hear covered in more detail, don’t hesitate to get in touch with me personally.
8-23-2014 Come With Me Now! Building the Team Part III
8-23-2014 Come With Me Now! Building the Team Part IV