{"id":78569,"date":"2019-06-30T05:00:54","date_gmt":"2019-06-30T11:00:54","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=78569"},"modified":"2021-03-16T11:59:33","modified_gmt":"2021-03-16T17:59:33","slug":"2016-06-17-building-teamultimate-guide","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2016-06-17-building-teamultimate-guide","title":{"rendered":"How to Hire Amazing Team Members for Every Real Estate Process\u2014From Finding Deals to Renting Them Out"},"content":{"rendered":"<blockquote><p><em>&#8220;Talent wins games, but teamwork and intelligence win championships.&#8221;<\/em> \u2014Michael Jordan<\/p><\/blockquote>\n<p>I know that \u201cbuilding the right team\u201d is a very popular topic in business circles and here on BiggerPockets. Actually, when I typed the word \u201cteam\u201d in the BiggerPockets search bar, here were the results:<\/p>\n<ul>\n<li>19,277 total search results<\/li>\n<li>10,902 <a href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener noreferrer\">forum<\/a> results<\/li>\n<li>569 <a href=\"https:\/\/www.biggerpockets.com\/blog\/\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Blog<\/a> results<\/li>\n<\/ul>\n<p>I am sure you would agree that is a lot of search results! And quite honestly, it should be a popular topic.<\/p>\n<p>Without a great team, you can only get so far in this business. The interesting fact about building a team is that it is something you WILL always need as long as you are in this business\u2014or any other for that matter.<\/p>\n<p>It is not something you \u201coutgrow.\u201d It is not something you need when you begin and something you don\u2019t need when you get more experienced. Wherever you are in your business, you need a strong and effective team.<\/p>\n<p>The other important point to note is that your team will change and evolve. People will come, and people will go. As you grow and evolve, you will outgrow certain team members. As you continue to grow and evolve, so should your relationships and team members.<\/p>\n<p>But before you seek out a team, there are a couple of steps I highly recommend.<\/p>\n<h2>Action Steps Before Finding Team Members<\/h2>\n<h3>#1: Get crystal clear on your real estate investing niche, strategy, and goals FIRST.<\/h3>\n<p>Too many people \u201cjump in\u201d to\u00a0this business without a focus, plan, or goals. They go to networking events, share with people that they are real estate investors, and hope to find people to help them. Wrong move. It is much more effective to become clear on your investing niche, strategy, and goals <em>before<\/em> you seek out team members.<\/p>\n<p>For example, we currently have a few investing strategies we are focused on, one of which is buying large multifamily apartment buildings in Pennsylvania. The other key niche is buying <a href=\"\/renewsblog\/2013\/04\/09\/how-to-buy-a-small-multifamily-property\/\" target=\"_blank\" rel=\"noopener noreferrer\">small multifamily properties<\/a> in our current market, which is Trenton, N.J.<\/p>\n<p>I share this with you so it will encourage you to think everything through before beginning. What is your niche? What are your goals? And then what is your strategy\/process to achieve these goals?<\/p>\n<h3>#2: Once your plan, strategy, and goals are in place, ask yourself (and answer) the following questions.<\/h3>\n<ol>\n<li>What team members do I need for every step of my real estate strategy\/process?<\/li>\n<li>Where can I find these people?<\/li>\n<li>Who do I already know who might have some recommendations?<\/li>\n<\/ol>\n<p>Once you have recommendations, do not drop the ball on cultivating these relationships. As a case study, I thought it would be helpful to share who we use as our team members for each stage of the above strategy I shared.<\/p>\n<p>Hope this helps you with your own team building!<\/p>\n<h2>Who You&#8217;ll Need for Every Investing Step<\/h2>\n<h3>#1: Find\/Evaluate Property<\/h3>\n<p><em><strong>Finding Property:<\/strong><\/em> <a href=\"\/renewsblog\/2015\/01\/31\/ultimate-beginners-guide-real-estate-wholesaling-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">Wholesalers<\/a>, attorneys, birddogs, <a href=\"\/renewsblog\/2015\/12\/04\/how-to-become-a-real-estate-agent\/\" target=\"_blank\" rel=\"noopener noreferrer\">real estate agents<\/a>\u2014any and all people in your network. The key is to share your goals and what type of deals you are looking for with everyone you know. You have to make sure you are \u201ctop of mind\u201d for people!<\/p>\n<p><em><strong>Title Company:<\/strong><\/em> Having a responsive title company (who you give repeat business to) is imperative. This becomes even more important if you decide to buy property at auctions!<\/p>\n<p><em><strong>Local Municipality Representative:<\/strong><\/em> Something new investors forget to do is check if a property that they are considering purchasing is a legal multifamily. Before we purchase any multifamily in our trading area, we typically call the city inspector and ask them to verify that the address we are considering is, in fact, a legal multifamily. It is not the end of the world if it is not, but it certainly will take more time to make it one.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-94841\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/coffeedate.jpg\" alt=\"two people sitting in a cafe at a table drinking coffee smiling\" width=\"702\" height=\"364\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/coffeedate.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/12\/coffeedate-300x156.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>#2: Purchase Property<\/h3>\n<p><em><strong>Attorney:<\/strong><\/em> We have attorneys who helps us put together funds where we raise money from investors to purchase buy and hold properties. We have an attorney who helps with contracts and one who helps with <a href=\"https:\/\/www.biggerpockets.com\/blog\/evicting-tenant\" target=\"_blank\" rel=\"noopener noreferrer\">evictions<\/a>. It is helpful to have different attorneys who specialize in various areas.<\/p>\n<p><em><strong>Due Diligence:<\/strong><\/em>\u00a0This is a huge part of the \u201cpurchasing\u201d stage (i.e. when you have the property under contract). This is when you <a href=\"\/renewsblog\/due-diligence-ultimate-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">conduct due diligence<\/a> on the building, from the roof to the major building appliances to the actual apartments\/units themselves.<\/p>\n<p>It is helpful to have a contractor or someone who knows buildings well on your team to help during this stage. Due diligence also means collecting data from the current owner (i.e. tax records, maintenance numbers, utility numbers, etc.). You could have someone on your team to help collect these items. If you are not a detail person, get someone who is to help drive this process!<\/p>\n<p><em><strong>Related:<\/strong> <a href=\"\/renewsblog\/2015\/12\/15\/6-train-real-estate-team-successfully\/\" target=\"_blank\" rel=\"noopener noreferrer\">The 6 Things You NEED to Train Your Real Estate Team Successfully<\/a><\/em><\/p>\n<p><em><strong>Funding Source:<\/strong><\/em> Whether it be your own money, <a href=\"https:\/\/www.biggerpockets.com\/blog\/find-private-money-lenders\" target=\"_blank\" rel=\"noopener noreferrer\">private money<\/a>, institutional money, or <a href=\"https:\/\/www.biggerpockets.com\/companies\/hard-money\" target=\"_blank\" rel=\"noopener noreferrer\">hard money<\/a>, every investor needs to get their funding in place. There are a ton of articles written on this topic.<\/p>\n<p>Always be on the lookout for new funding sources. The key is to have options and not feel stuck!<\/p>\n<h3>#3: Renovate Property<\/h3>\n<p><em><strong>Contractors:<\/strong><\/em> We have had our own in-house construction staff renovating properties, and we have also had sub-contractors renovating our properties over the years. There are pluses and minuses to both.<\/p>\n<p>We are currently using the model of hiring sub-contractors for renovating our properties. Regardless of the avenue you choose, you must have a written scope of work for each phase of the project, and you need to closely monitor and manage progress.<\/p>\n<p>We have two major renovation projects going on that are mixed-use buildings around 4,000 square feet. However, both are on the same block as our office building. My husband Matt stops in once a day to see how things are going. The key is to manage to a defined timeline and budget!<\/p>\n<p><em><strong>Inspectors:<\/strong><\/em> Most of the properties we purchase always need a ton of work. Therefore, before we can lease the property, we must get a \u201ccertificate of occupancy.\u201d While you can\u2019t have your own inspectors on your team, you could certainly get to know and build a relationship with the local inspectors so that you begin to understand what they are looking for during an inspection.<\/p>\n<p>I am not going to sugarcoat this one; it can be a very frustrating process. What one inspector sees as a violation is not always what another inspector sees as a violation. The key with this process is to stay in communication with them, and don\u2019t talk to them only when you need something\u2014build a relationship with them.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-111098\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse.jpg\" alt=\"condo-townhouse\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/04\/condo-townhouse-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>#4: Lease Property<\/h3>\n<p><em><strong>Property Manager &amp; Leasing Agent:<\/strong><\/em> Once the property gets the C of O, our property manager gives the OK to our leasing agent to begin marketing the property. The leasing agent then acts as the \u201cpoint person\u201d to get our units filled. Our property manager then steps in once we get applications.<\/p>\n<p>Based on our criteria, the applicant is accepted or denied. Our property manager steps back into the process to on-board them (lease signing, etc.). The key to this stage of the process is to have our property manager and leasing agent in strong communication. They work \u201chand in hand\u201d during this process, so strong communication is imperative.<\/p>\n<h3>#5: Refinance\/Hold\/Manage Property<\/h3>\n<p>This one is fairly self-explanatory, but this is where you are managing the property efficiently and effectively. The most important decision to make before you determine the right team members is to figure out if you are self-managing the property or outsourcing to a third party property management company.<\/p>\n<p>For the majority of our portfolio, our team manages the properties. We have a bookkeeper who handles all of our accounts payables, receivables, rent collection, etc. We have a property manager who\u00a0handles all lease renewals, move out, maintenance issues, etc.<\/p>\n<p>Additional team members for this process include:<\/p>\n<ul>\n<li><em><strong>Banker<\/strong><\/em><\/li>\n<li><em><strong>Bookkeeper<\/strong><\/em><\/li>\n<li><em><strong>Accountant<\/strong><\/em><\/li>\n<li><em><strong>Maintenance Person\/Handyman<\/strong><\/em><\/li>\n<li><em><strong>Property Manager<\/strong><\/em><\/li>\n<li><em><strong>Key Sub-contractors:<\/strong><\/em> Some of the key ones we have include pest control, plumber, electrician, carpeting, used appliance company<\/li>\n<li><em><strong>Third-Party Property Management Company<\/strong><\/em><\/li>\n<\/ul>\n<h3>#6: Market\/Sell Property<\/h3>\n<p>As I shared earlier, one of the\u00a0strategies we&#8217;re\u00a0ramping up is the ability to sell renovated\/leased property to other investors. For this stage of the process, your team members can be the same team members who\u00a0helped you find the deals in the first place.<\/p>\n<p>We work a lot with wholesalers. We are not interested in being wholesalers ourselves, so we prefer teaming up with great wholesalers\u00a0who can help us find deals and sell investment property to investors. Other team members for this stage can be real estate agents\u00a0and birddogs.<\/p>\n<p><em><strong>Related:<\/strong> <a href=\"\/renewsblog\/2015\/08\/05\/quick-guide-hiring\/\" target=\"_blank\" rel=\"noopener noreferrer\">The Quick Guide to Hiring For Entrepreneurs: How to On Board Quality Team Members<\/a><\/em><\/p>\n<p>In summary, here are some keys to building a successful (and lasting) team:<\/p>\n<ol>\n<li><strong>Find the best team members<\/strong> by getting involved in the community you are investing in.<\/li>\n<li><strong>Stay in front of your team.<\/strong> Use technology where possible\u2014for example, we send out a monthly newsletter to our investors and business network. If you can do something like this, then you can stay in front of your network, so they don\u2019t forget about you.<\/li>\n<li><strong>Cultivate relationships.<\/strong> Don\u2019t just reach out when you need something.<\/li>\n<li><strong>Align with people who want to see you successful<\/strong> and really get \u201cthe more you succeed, the more they succeed.\u201d<\/li>\n<li><strong>Build relationships with strong advisors<\/strong>, like a mentor, business coach, and mastermind group!<\/li>\n<\/ol>\n<p><a href=\"https:\/\/www.biggerpockets.com\/webinars\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91217\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>Did I miss any key team members? Any questions for me about the above?<\/em><\/p>\n<p><strong>If so, leave a comment below!<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NBA great Michael Jordan once said, &#8220;Talent wins games, but teamwork and intelligence win championships.&#8221; Want to be a real estate champ? Hire the best! Here&#8217;s who you&#8217;re going to need and how to go about finding them. <\/p>\n","protected":false},"author":6788,"featured_media":107640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4241],"tags":[],"class_list":["post-78569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-business-management"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/78569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/6788"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=78569"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/78569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/107640"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=78569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=78569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=78569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}