Tips for Flippers on Trusting Your Professionals
So, you hire a tax professional to help you, and when he makes his recommendations, you ignore them. Is this wise?
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Rich Dad, Poor Dad author, Robert Kiyosaki recommends surrounding yourself with people that are trained, skilled, and better than you in a particular field. This “team effort” is what makes an average investor, businessman, or leader above average. I doubt Mr. Kiyosaki would have achieved the level of success that he now enjoys, had he not listened to the advisors and professionals that he surrounded himself with. Can we be successful by doing it differently?
I often see people not receiving counsel from the professional that they hired. . .
My wife is a real estate agent and she works very hard at doing everything in her client's best interest and being a professional. The greatest grievance for her is when her client does not trust her counsel and suddenly they become the professional in her field! Oh my, what an annoyance!
OUR PROBLEM: One of the main issues is simply that we don’t hire the quality of a professional that is able to meet our standards because we don’t want to pay for it! In reference to Clay Huber’s blog post, are you hiring a professional based on how cheap they are? If so, you may often find yourself questioning their ability to achieve your desired goal. This is counter-productive and rarely ends up well for either party.
I was rehabbing a house that had foundation issues and the drywall was cracked up severely and we were removing popcorn from the ceiling. In desperate need of a good, cheap drywall & painting expert, I hopped on Craigslist and answered a couple of ads that I felt good about. I met with two different men. One was a young man who met me at the house and gave me an incredibly good price and he talked the talk, but I really did not feel all that comfortable with him. Nonetheless, I chose him over the other contractor that I knew was very experienced and I could trust, but he was $1,000 higher in price.
THE WINNER WAS THE LOWEST BIDDER, BUT I BECAME THE BIGGEST LOSER
As this contractor began to work, my heart fell into my stomach. I quickly realized that he had no idea how to repair drywall. I even saw a copy of "Drywall Repair for Dummies" laying in his tool bag! I would respectfully ask him why he was doing things a certain way, and he would assure me that his methods were proven. 3 days into the job and 20 bags of 30-minute mud later, I cut him loose. I had hired someone that was not a professional. Shame on me!
I brought in a professional to complete the job, and because I trusted him, I never questioned his work. When he was done, it looked like I had desired, but it cost me MORE than if I would have originally gone with the professional that gave me the higher bid!
This blog is not about nit-picking the professionals that you hire, but rather TRUSTING THEM!
Questions to Ask Yourself When Hiring a Professional:
- Do they communicate well? Are they timely and clear in their communication? Are they expecting these things from you also?
- Are they accountable? Do they have a problem with you inspecting their work? Are they willing to communicate their progress with you? Are they willing to get paid after work is completed? (industry specific)
- Do they have the tools & experience to achieve your desired goals? Are they willing to give you references for the work they have done that is SIMILAR to what you need?
If you hire someone and they do not meet your expectations, do not hire them again. If you are rehabbing, your sub-contractors must be able to fulfill your goals on a project or you will have REGRET! There are plenty of fish in the sea of tradesman and professionals, so go find someone that you can trust. When you find that someone, heed their advice!
Great, now go hire your professional and trust them. When they make recommendations, strongly consider them, and in fact do them if possible!
As a fix-n-flipper, here is a list of my trusted professional team that is crucial for my success:
-Escrow Agent at Title Company
-Heating & Cooling Company
What does your list of trusted team of professionals look like?