How A Great Team Makes Individual Success Possible
Even the most casual sports fan has probably heard about the great run the Golden State Warriors are on this year. For those who haven’t the Warriors won an NBA record 73 games this year and are well on their way to back to back championships. While they are led by MVP Stephen Curry they are much more than a one man show. What makes them so great is that the sum is greater than their parts. The Warriors consistently roll out nine and even ten players every game. Everyone knows their roll and what is expected of them. From the outside they appear to like and respect each other and push each other for greatness. You should use their model as a blueprint for your real estate investing business. Individual success is much easier when you have a great team around you. Here are a few members you should have on your real estate team.
- Real Estate Agent. Regardless of how you find deals a good real estate agent can put them together. They are the buffer between your offer and acceptance. You and your real estate agent should be on the same page in regards to property type, how you make offers and which manner you want to close. They also provide feedback on what it takes to get these offers accepted. A good real estate agent can also help in selling your properties. They will give insight on list price and make the process as smooth as possible. A good real estate agent will get more offers accepted and directly impact your bottom line.
- Attorney. Your real estate agent may submit your offer but your attorney holds it together. A good attorney does more than simply provide council. They offer protection for every aspect of your business. They review contracts to ensure that nothing unexpected comes up. They work with everyone from lenders to other attorneys to make sure you get the best deal possible. If a deal is about to fall through they are the ones that hold it together.
- Mortgage Broker. A mortgage broker is an unheralded member of your investing team. They first benefit they provide is access to deals. A good mortgage broker takes several loan applications a week. Some of these fall outside of lender guidelines and need the services of investors. Not only can they provide several leads a month but they can also help with properties you are selling. It is very frustrating and time consuming working with a buyer that doesn’t end up closing. A mortgage broker will take an application and give insight on the strength of the borrower. A good relationship with your mortgage broker can be a two way street for potential deals.
- Contractor. As a real estate investor it is essential to work closely with a quality contractor. You will lean on them in every aspect of your business. If you focus on rehabs they can provide quick, reliable estimates that will help you make offers as quickly as possible. By delivering quality work you can maximize your bottom line. If you are a buy and hold investor they can tackle rental property repairs as they come. This increases the likelihood that your tenant will want to remain in your property as long as possible. There are several different areas that you will lean on your contractor and all of them are important.
- Property Manager. One of the reasons that many investors shy away from rental properties is the perceived amount of work they require. Here is where a good property manager can make your life much easier. Instead of being on call to handle every issue your property manager takes care of them. They handle everything from scheduling maintenance to filling vacancies. For a 10% of the total monthly rent they will make owning rental property as easy as it can be.
- Accountant. The final member of your investing team is your accountant. Even if you are familiar with tax guidelines a professional accountant knows how to maximize your return. They will also provide insight on which legal entities offer the best protection for you and your business. They can also make your day to day business operations easier by helping you plan payments and deal with cash flow.
There are several other members that should be part of your team. A good appraiser, inspector and insurance agent call all add value. One of the keys to building a successful team is communication. As simply as it sounds you need to be on the same page with everyone you work with. Your goals and objectives should also be clear from the start. This is typically something that is gained with experience. The more you work together the more comfortable you become. If you have a good team member you should treat them like gold. There are several little things you can do that will go a long way. A quick cup of coffee, a thank you note after a closing or an email thanking them for a referral all will help strengthen your team.
Just a few years ago the Warriors had one of the worst records in the league. Now they are a historic team ready to smash all NBA team records. A few tweaks in their team made it all possible. Whether you are in the NBA or a real estate investor a good team makes everything possible.