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Building a Team

BUILDING A TEAM: CREATING A NETWORK OF PROFESSIONALS

Someone once said your NET WORTH is only as big as your NETWORK!

Not only is it important to tell everyone you know that you are an investor and to team up with a partner, but it’s just as important to make specific contacts in order to build your network.

You should also set a specific weekly goal to make ONE new connection a week or to take a professional to lunch every week or every other week.

Here’s a list of connections of people that it’s important to have on your team: Real Estate Agents, Title Companies, Accountants, Other Investors, Contractors, Attorneys, Bankers, Mortgage Brokers Appraisers, Home Inspectors, Other Contacts: Landlords, Post Office Workers, Students

1. Real Estate Agents:

Every investor should have a realtor on his/her team. A realtor can be out there finding deals for you. A realtor also comes in handy to make offers on property and to look up “comps” for you. (We will discuss Comps in detail under Section Four: Finding Deals).

2. Title Companies:

Title companies are invaluable to both the beginning and the seasoned real estate investor. They make sure titles are free and clear of liens and encumbrances, and provide title insurance and escrow services. (You should never invest in a property until you know the title is clean or accept any clouds on the title.) If you have a relationship with them and plan on doing business with them they can also provide you with lists of properties in foreclosure, for-sale-by-owner (FSBO) lists, and a myriad of other helpful marketing resources and tools.

3. Accountants:

You will want an accountant on your team that is familiar with real estate and tax law. An accountant can work with you to minimize capital gains and other tax issues you will encounter in this business, as well as setting up and structuring your business entities.

4. Other Investors:

Beginning real estate investors often see other investors as competition. This is far from the truth. It is important to network with other investors. They may become a partner with you on one of your deals or they may let you know of deals if they are too busy to follow up on all of the deals they have in their funnel.

5. Contractors:

You will definitely want to know contractors if you plan on “flipping” or “rehabbing” properties, and also if you plan to buy and hold for long-term income or appreciation. It’s important to have a relationship with one or more contractors.

6. Attorneys:

You will want to know a good real estate attorney. An attorney can help protect your assets and give legal advice on contracts. It is much easier and less expensive to STAY out of trouble than to GET out of trouble!

7. Bankers, Mortgage Brokers:

You will want to have relationships with bankers and mortgage brokers and lenders. Often the biggest obstacle for beginning investors is financing a deal. If you have this network established beforehand it will be easier when it comes to financing.

8. Appraisers, Home Inspectors:

It is good to have appraisers and inspectors on your team whom you can trust. They will work with you to evaluate a property.

9. Other Contacts:

It’s important to have a variety of people on your team. Get creative when thinking about people to include on your team. You may want to think about having landlords on your team. They can offer advice or recommendations if you want to get into lease options or property management. They may also turn into a “seller” if they are frustrated with their tenants or want to get into a different type of property.

And what about Postal Workers? They know specific areas like the back of their hand. What if you told your postal carrier that you bought houses and gave referral fees if he/she lets you know of houses that are abandoned, for sale by owner or have been “for rent” for a long time in their neighborhood?

It might be good to form relationships with students. Students can be hired to do some of the tasks that you don’t have time to do. You can train a student to go to the Courthouse and look up foreclosures, or canvass a neighborhood with flyers.

The possibilities are endless. Just remember, the bigger the team, the bigger the network, the easier it will be to find and close deals and the more profit you will make. Most of your deals will be made through the connections that you have or that you have established, so that is why we put a great emphasis on making connections and networking. It is critical to your success as a real estate investor.

Once you build your network you’ll be able to connect people with deals and this could be another way to make money for example by charging a fee for assigning a contract.

“I love putting people together. For example, if a guy I’m talking with tells me about something he wants and I know someone who has it, I put them together. I get a contract and tie up the property he wants and put the people together. That’s the fun part.” —Chris Baird

These first few things (telling everyone you know, learning all you can about investing, creating a partnership and building a team) will have profound effects on your success.


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