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7 Members That Make Up A Winning Real Estate Team
No man is an island.
You can’t possibly be an expert in each specialty area in real estate investing and do everything yourself.
Even if you somehow have all the knowledge and qualifications to do so, going ahead with your one-man-show is really not worth the time.
There is only so many hours in a day, only so many messages you can send and only so many documents you can sign.
Using the specialist expertise of property professionals in the market is a more productive way to go about work and worklife.
Because you are helping them make money. And in return, they help you to make money as well.
More often than not, the gravest mistakes in real estate investing is due to a lack of knowledge, expertise, or a pure attitude of ignorance.
This is due to either of two factors. Or a combination both.
- You thought you know but actually didn’t.
- The advisors you sought help from are incompetent.
Essentially, you are only going to be as successful as the team you build around you.
The following are the key players you need in a superstar team of professionals. You either hire them as your staff, or hire them on a per deal basis.
You are without doubt, the most important member in your team.
While other players in the real estate value chain make their profits from the rates they charge, you are left with whatever scraps that is left with once a deal is done and dusted.
The critical factor to remember is that everyone else expects to be paid for their services and expertise. It is not unusual to find team member who do not really care your emerge from a deal better or worse off.
This means that you have to be the main driver in any deals that you pursue.
Other people might slack off or give you advice that could compromise your own interest while enhancing their own.
Don’t be afraid to give team members an earful or fire them if you have to.
2) Property agent
The jobscope of real estate agents are often devalued by people outside the real estate investment industry.
You could be one of them who don’t value them as much too.
This is often due to the actual work being conducted by agents are often unseen behind the scenes.
We frequently see them dressed in affluent business suits and interacting with others. What we don’t see is how they slog behind the scenes to get material matters done.
This is why the value they bring to the table is often underappreciated.
Even if an agent is as lazy as sloth, being able to bring a killer deal onto your table can be priceless and well worth the fees that you are paying him.
You need someone who have a tacit understanding of property values. And also actively right in the midst of the market so that he can bring you deals on a plate.
Unless you manage a huge fund specially meant for real estate investments or have a sugar daddy of a private financier behind you, you are going to need lenders to fund your real estating.
Bankers who know their stuff knows how mortgages are approved and can advice you with steps and actions you can do in order to approve a loan.
Moreover, they can often give preferential rates to customers they favor.
In times of urgency, experienced bankers can also vet through your credit details to pre-qualify a mortgage.
This can be an invaluable element to gaining a speed advantage over your competitors.
4) Home inspector
Even to this day, a lot of home buyers don’t engage the services of a certified home inspector to examine a house before closing.
This is often because they have previously witnessed the work of inspectors walking around a house, making notes, and then being charged hundreds of dollars for the work.
Yet the tasks of property inspectors can sometimes make or break an investment.
They are one of those professions that don’t get any credit when things go smoothly. But when something goes wrong, the information they provide can be as precious as gold.
Especially during acquisition, sellers often attempt to hide defects that can negatively affect the value of the house.
Inspectors are trained to sieve them out.
The good ones with years of experience can even advice you how to easily solve a problem. Or inform you that a big existing problem will cost you dearly.
5) Tax advisor
Why pay more taxes when you can legally pay less?
If you have never run a business, you might not be able to appreciate the value that tax advisors bring to the table.
But if you are a businessperson, you will undoubtedly know that every word that comes out of their mouth can potentially save you a lot of money.
It is best that you engage a proper accountant who is familiar with local tax laws to be on your team.
6) Escrow officer
In every deal you make, the best case scenario is that you are using your own escrow officer.
An escrow officer ensures that funds and assets go to the correct people or entities.
This is why it is always best to use one you have rapport with and a history of good track record.
Unless you are going into huge complex deals, the services of a lawyer might not be essential.
This is because the other members in your team would often have template contracts that have already been vetted by lawyers which you can already use.
Finally, remember not to allow any member free rein over your investing activities.
Because they have their own interests to pursue, it is never 100% certain that they are 100% on your side.
This means that should you run into a credible professional who you can trust and work with, it is often worth it to just pay them for their services.