One of the biggest mistakes that real estate investors make is not getting help.
I know, because I’ve made the same mistake in the past. I’ve tried to do too much myself. I see new real estate investors, agents, and business owners doing the same thing. It’s extremely difficult to really grow to your full potential if you are tied down doing too many lower value tasks. If you are trying to learn and master — and stay on top of the changes in every single area involved in real estate — you are doing too much at once. Technology can help a lot. Still, there is still no substitute for the power of leveraging others. If you really want to make real estate work for you and see the best results possible, I strongly recommend making sure you have these people on your team before the ball drops.
Here are six people you should absolutely recruit for your team before the new year.
1. A Good CPA
Once you move into real estate, you don’t want just any old tax preparer. You need a savvy and experienced accounting and tax pro to prepare your taxes, advise you on the best structures, and aid in maximizing your profits and tax breaks — without setting yourself up for an uncomfortable audit. You may even want your own bookkeeper to help throughout the year. Note that these don’t have to be full time, in-house staff members on salary. But you do need them on call.
2. Property Manager
I know a lot of members of the BP community are against having property managers. Still, I will tell you that without a doubt, you won’t enjoy the maximum financial or personal rewards of investing in real estate if you stick to the DIY property management approach forever. You just can’t. Plus, there are now so many more efficient and cost effective property management options than there used to be. There are experienced individuals, tech savvy remote services, and even turnkey teams. Check out your options.
3. Real Estate Agents
This can be another touchy subject for many investors. From my experience, real estate agents and investors are better when working together, rather than working against each other. Real estate agents can find deals, they can provide great insights, and they can take a lot of the burden off of you for a lot less of the pie than you think. Every investor ought to have a handful of agents out there that are bringing them deals.
Sooner or later, you are going to need an attorney. You may need a corporate attorney, tax attorney, real estate-specific attorney, or one who specializes in estate planning. It just seems smart to find them before you are in a crunch — and to benefit from their advice so you avoid issues.
Winning in the real estate game really comes down to the contractors you have. If you don’t have good contractors, then you are at a disadvantage when it comes to evaluating deals, fixing them up to rent-ready condition fast, and keeping your assets maintained. It can seem really hard to find great contractors, but they are out there. Ask for referrals.
6. Personal Assistants
Many of the tasks that drain our time and energy can easily be done by a personal assistant. Most of the lower-value tasks we do throughout the day can be delegated to someone else as their higher value activity. That can even include researching and screening many of the above team members. Break down your annual income goal by the hour. If the tasks you are doing can be outsourced for less than that, you have to delegate them to assistants. If you don’t, you simply won’t make your financial goals.
Related: The Quick Guide to Hiring For Entrepreneurs: How to On Board Quality Team Members
In addition to this list, you may even want a marketing manager or general manager to take a lot of the management burden off of you. As you can see, many of these “team members” don’t really have to be in-house, full time, and on a salary that adds to your overhead. You typically pay on an as-needed basis. Scale as your needs increase and your business is growing. It may take some investment or giving up a piece of the pie at first, but it will allow you to grow to where you want to be.
Think about this: Instead of pocketing $150k this year, why not take $100k, pay an assistant $50k, and position yourself to make $250k the following year? If you have any surplus funds, it’s worth investing in getting great help this year. Set yourself up to make more the following year. Check with your CPA, and you might even find this is a way to lower your tax liability before the end of December.
Which of these members do you have on your team? Which are you planning on adding?
Let me know with a comment!