In all the reading I have done I am beginning to understand as a new investor that to be successful I really need to build a team (Do what you do best and outsource the rest). What is the best approach to building a team? Do I just go “balls to the wall” and just start buying and selling and find the right people as I go along and keep relationships? Or do I literally call title copanies, real estate agents, etc. and look for people who are willing to begin a partnership in REI? Or somewhere in between?
I am actually attending a local REI club meeting this evening so I am hoping to find some of these people there.
Thanks!
I found a VERY dependable agent that “Gets It” (the REI thing) and have gotten a ton of referals from her and they have referred others:
RE Agent----> Title Company
----> RE Attorney
----> Inspector ----> Heating & A/C
----> Plumber
----> Electrician
----> Foundation Expert
----> Mortgage Originator ---> Insurance Agent
---> Appraiser
---> Hunting Lease maybe (oops)
---> Bass fishing (oops again)
Of course, down here, everyone knows everyone and/or is related! It’s surprising how quickly you can build a good team and how readily folks will refer other good folks.
I had to have an 80%, 2T gas furnace replaced yesterday. My inspector gave me a contact. I got a furnace (complete with A/C coils) with a 20-year heat exchange warranty, completely installed (including the Parish permit) for $915. They started at 1:00 PM and finished before 6:00! I had used the bad furnace (and some other miscellaneous inspection stuff) as leverage to get $1800 in concessions from the seller…
It’s all about the networking. If you find the “good ones”, the best thing that you can do is give them free “word of mouth” advertsing!
And, “YES”, the local REI club would be a super place to start!
Keith
Thanks Keith! I actually have a friend of the family that has done real estate for 20 years in my area. I am sure she has tons of contacts.
Probably a good place to start…if she has 20 years experience and is still doing it, she must be somewhat successful…
The key is not necessarily finding an agent…it’s finding the ones that “Get It” – that understand REI. Mine owns rental properties herself and actively manages a bunch of others for investors. She understands my ‘boilerplate’ for acquistions – she knows how many I plan on doing a year and how long each one takes to do…she’s not gonna get rich off of me (her last check to split with her broker was $1,500)…but I’m steady. She not only has to do $XXX amount of transactions, she has to turn YYY amount of “units” annually to maintain her commission level. The 4 or 5 I do a year are steady. She is also honest, good for her word, and has a good knowledge of the local market. She understands the local RE sales AND rental markets and has been a great help getting me up to speed here.
Keith
The key is not necessarily finding an agent...it's finding the ones that "Get It" -- that understand REI.
As a Mortgage Broker I do the same thing. I have found Appraisers, Title agencies, Insurance agents, that understand what it is that i expect for my customer’s. If they cannot deliver…there are plenty of others who will.
This way I can feel confident making commitments to my clients.
Hollinmb:
I learnt a precious lessson as a new real estate investor. I lost a deal bcoz I could not find a TITLE company that does double closings.
I suggest you put an ad out on craigs list, asking for a dedicated real estate attorney and FREE consultation.
Take them to lunch, I paid my lawyer a small retainer($100) and she found everyone for me in 2 days!
-Investor friendly title company.
-Realtor
-2 Mortgage brokers
-Another investor who wants to share ideas.
So, if you dont know the lingo or what to say to these professionals, I suggest you hire a RE attorney and let him find the contacts.
Good Luck
That’s a great idea moolamatch.
In return for setting you up with all these contacts is this attorney involved in your transactions and make any cut for his efforts? I found a couple RE Attorneys on craigs list and I wanted to introduce myself. I want to make sure I can offer something in exchange for these contacts besides a lunch and $100.
Oh yeah.
I give the RE attorney all my business. Closing, title searches etc. Which is not really that much. Anywhere from $250 to $500 max.
Where r u located?
hollinmb
Now that is what it is all about!! Build a team!! And not out of your friends either. That never works out as planned. Like Henry Ford said "I just hire smart people!!" you do not need to know everything about this business just hire smart people!