Feeling like I had a failure day looking for my team, any advice?
Wholesaler · Waxahachie, TX · Member since 2021 · 13 posts · 17 votes
Feeling like I had a failure day looking for my team, any advice?
Most Popular Reply
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5yTwo thoughts....1. Keep after it. No one said it is easy....it is work....real estate is get rich slowly, not get rich overnight...or in an afternoon.
#2. If you call/post and say "my partner and I", normally that is telling me you have no money and that it is your partner bringing the money. Maybe that is true or not true....but that is the first thing that comes to mind. So for the most part all those people you called, if they think you have no money, then you can't do deals, and wasting time. Also in this market, anyone that says "partner" to me, scares me. It's fast acting, so partner slows you down in most cases.
I think you're probably way too early in the process for some of those team members.
#1....get financing in place...have your preapproval letter in hand and maybe a bank statement that shows you have the other 20% and if you're flipping the cash for the reno.
#2...then you can go shopping, so then you need a realtor.
#3...when you get the house under contract, then you get the contractor....otherwise why does a contractor want to spend time with you now? For the chance of future business?
#4...when you get the house under contract and contractor in place, then maybe you get PM in place if you're not going to manage yourself.....while there are all kinds of reasons to have PM, I'd suggest if you are young and motivated and new to it all, maybe have a realtor help you get it leased, and you do the PM for the first 1-2-3....you'll learn the ropes and as you grow, then you can turn over to PM at some point.
An alternative is when the meetups get going again....go to a meetup...network....chances are you'll get all those contacts there, plus some others...and maybe 2-3 in each category.
Kind of crazy, but there is so much to learn. I think it is better to use the "come screaming in the office" approach for most people. Don't spend a ton of time getting ready.....go find your deals 50% deals. When you find one, "come screaming in the office" ....what do I do next....that might be a walk thru, maybe a contract, maybe that is rapport building....and you do that until you get to the next "come screaming in the office moment." and then you just move step by step.
62 Replies
Yesterday was the sort of day where the sun only came up to humiliate you. Today will likely be the same. You have to be willing to laugh at that eminent probability and go on. That's the secret to at least 90% of success in getting things done over the phone.
Last week my phone rang and a guy was on the other end who was obviously working his way through a local tax list of absentee owners of local properties. He told me the street address of my property, and asked me if I wanted to sell it. I asked who he was and he told me, "My name is Mike, and I'm for real."
Literally, "MY NAME IS MIKE, AND I'M FOR REAL." That's it. Somebody told him that was a wise thing to say on a cold call.
If you avoid idiotic phrases like that, cold-calling goes better.- Investor · Raleigh, NC · Member since 2019 · 433 posts · 743 votes5y
The truth is that real estate is mega hot right now and none of these lenders, agents, contractors or PMs are begging for new clients. They have plenty of clients already doing deals and are ready to go.
I would just focus on getting 1 piece of the puzzle first. Go in a local FB real estate group and ask for recommendations for an agent. Your agent is going to tell you to get preapproved and will likely have some lender recommendations. They’ll hook you up to start getting deals fed to you. Then when you actually have a deal, look for your contractor and your PM.
Also, to reiterate what someone else said, you made calls for one day. How many calls did you make? If you’re beating yourself up for one bad day, your first day, in RE, then this is not going to be the investment vehicle for you.
- Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes5y
Originally posted by @Duane Alexander:
Greene over emphasizes the importance of finding a rock star team to begin with in all of his books.What’s the point of interviewing all of these people when you don’t have a deal in sight? 95% of all new real estate investors never secure their first deal. You think that “rock star” contractor or property manager really gives a heck about you if you don’t have anything under contract? Hard money lenders don’t even want to talk to you until you have a deal you’re considering. Real estate agents will probably work with you but if you’re relying on a realtor to find you a deal in this market then you’re in for a rude awakening. Focus the vast majority of your energy on finding the deal, it’s the hardest part of this business, and something most people really struggle with. Once you figure that out, everything else falls in place.
Great advice!
- Contractor · Grand Marais, MN · Member since 2016 · 249 posts · 417 votes5y
@Tanner Foy the people that are good at what they do are not sitting around waiting for the phone to ring...do 10 deals, after 10, you will know who to work with. You will have weeded out those that can't cut it. I'm a gc, booked out to 2022. I literally don't have time to talk to someone for very long that may, perhaps, some point in the future, consider buying a house, or duplex, maybe a tri, in my area, but maybe in Tennessee....you get the idea. Details are fine, but they get in the way.
- Contractor · Grand Marais, MN · Member since 2016 · 249 posts · 417 votes5y
@Tanner Foy David also says rock stars know other rock stars...If you are thinking about maybe buying a guitar, do you call Slash? Just start, you won't regret it
Ok so, I have a handful of seasoned investors that I do work for. They’ve been at the game a long time and know what to expect and approximate costs. Those guys I don’t even have to give a quote to. We go over the scope of work, and I’m off and running. We’ve been doing it this way for 10+ years and it works for us. I send them bills, and they Pay them. As for turnovers in their rentals, I do as I see fit.
I can’t tell you how many hundreds of hours I’ve spent over the last 18 years researching, spending my time coming up with detailed bids for rehabs, only to have people change their plans, hire someone else, not get the house, etc. I’m not wasting time like that anymore.
For a newbie, I’d be happy to take a call, talk for an hour, but I won’t go and spend time and take notes and come up with pricing unless they’ve closed on the house.
I’m very lucky to have the investors I have. We know each other well, we know what to expect, they want hands off so that’s what I give them, good work at a fair price.- Rental Property Investor · Fort Worth, TX · Member since 2020 · 11 posts · 6 votes5y
@Tanner Foy Hey Tanner I am in the DFW area as well, I have had a bit of success in this area.
I have great agents helping me throughout and I would suggest finding one that is investor friendly. I am a renter currently and I went so far as to tell my landlord that I am a new investor and their agent agreed to meet with me and talk.
I have family members who do contracting as primary income so I'm sort of covered there.
Best bet is to continue asking but just see off to take them to lunch or buy a coffee and just see where they stand as far as availability and how you can mutually benefit. Most agents have preferred lenders and can give you great resources. I also found a good hard money lender who was very helpful when I explained how new I am.
Feel free to message me if you want to talk some more. Best of luck
Nick
- Real Estate Agent · North Jersey · Member since 2016 · 76 posts · 29 votes5y
@Tanner Foy Hi Tanner - I would just start and as you go from project to project your team will be built naturally around you. You’ll literally use them and try their services and decide if you like working with one another and keep working with them or not. You’ll also learn who is right for what type of project and you’ll develop options. I don’t use the exact same “team” for every project. It depends what it is, where it is, what price point, who the end buyer or renter is, etc.
- Rental Property Investor · Newark, NJ · Member since 2017 · 88 posts · 75 votes5y
Hi Tanner, congrats on getting started. I've read through a few responses and I agree with most. You don't need much of a team to start. All you NEED is a Real Estate Attorney now so you can close on a property once you get an offer accepted. Once you have purchased a property or 2 then its time to get a Real Estate Accountant. Agents, bankers, contractors, etc. will come and go. Just start making offers and if this is for you then you will figure it out. Good luck!!
- Lender · Philadelphia, PA · Member since 2020 · 139 posts · 103 votes5y
Hi @TannerFoy,
First and foremost, I totally understand your frustration. There are a lot of moving parts in the business, and feeling overwhelmed is normal.
What I can say to you is that you are taking your first steps in the right direction. Building a solid network and team is pretty much your key to success.
I read through most of the other responses and I would have to agree that you need to have a deal on the table to get other parties involved with your project. That is not to say you can't obtain the team prior, but keep in mind they might be not as inclined to work with you.
Here are a couple of my tips though to help you build a team.
1- Step Outside Your Comfort Zone - Use Facebook groups, Social Media, local real estate meetups, reach out to friends in the industry to connect you with the people you are looking for. Cold calling is one approach, but try other ways of connecting with these people
2- Be vulnerable - People will connect with you if they feel you are being genuine and that you make mistakes.... because everyone does.
3- Ask Thoughtful Questions - People do like to help, so instead of approaching the conversation as " Can you be my GC" Try asking, "Hey [person name] I'm looking to build my team and I would love to learn what I should be looking out for when finding a GC."
By asking thoughtful questions, these people will 1)provide you with information, and 2) may feel more inclined to help you.
4 - Follow up Religiously
Sometimes the first call won't work, but if you come back, and with a deal on the table, the person might see that enthusiasm and be more willing to work with you.
Again non of this is set in stone. You will fail, you will succeed, but most importantly keep moving.
P.S. 80% is pretty high for a new investor. I would just check into that a little more. I work in the lending space so that's why I'm addressing this.
I run from anyone speaking in terms of "my team," or "assemble your team" as author David Greene apparently advises. Bullcrap! What a load of lousy advice! The only "team" you need starting out is yourself. Once you've proven you can perform, and run out of time to do things yourself, then maybe think about getting help. Not good to inform everyone you are a new investors. Yes, there are times in life where it doesn't pay to be completely honest, and this is one of them. I've been in the business not quite as long as Michael Plante, but like him, I've never had a team.
@Tanner Foy Two things:
1) You worked one day and found a solid lender. That sounds like a win.
2) What are you offering these other people (agents, contractors, property managers)? In today's crazy real estate world a simple back scratch isn't enough. You need a tangible option to bring them revenue in the short-term. A lot of agents and contractors are busier than they've ever been. So, calling them today saying you'd like them to be a part of your "team" led by a "newbie" investor with a non-existent property isn't appealing.
Others have provided great solutions. Work with your lender to get pre-approved for a loan. Start looking at areas within 30 min of where you live. Reach out to an agent with your top 5 properties you're interested in seeing and start making offers!
The concept of "my team" is absurd. "My team" assumes that you are building a roster of employees or contractors who work directly for you. You don't even have a unit to your name yet you want to surround yourself with a softball team...for...what reason?
And if someone calls me saying they want me "on their team" - what's the goal of this team? What do I get out of it? Everyone knows if someone calls to build out that team they have zero clue on what they're doing. Some book or guru told them to start building a team, and then they found me. Whoopdiedo.
The more appropriate approach is to think through every step of whatever process you're trying to accomplish -- lets say for argument sake, a BRRRR -- and who/what you might need to accomplish it.
- Finding a deal? You need an agent, and/or wholesaler. Start searching for wholesaler lists in the area, and maybe check in with a local REIA for meetings (zoom or in person). Start to build a relationship with other investors; perhaps they work with an agent who is "on your level"
- Evaluating a deal? Same thing -- local REIA. I have a few investors who I've built a relationship with, and when I have a deal (or think I have a deal), I run it by them. I usually omit the address and fudge a few numbers if its a MLS property to avoid potential competition, but we all want to see each other succeed.
- Evaluating/performing a rehab? Same thing. Went to a local REIA and met a few contractors. One I selected for my personal home and other for my BRRRR.
Seeing a pattern? Calling someone up to "add them to the team" is nonsense. You're cold calling. I'm surprised you found anyone to begin with.
But, getting involved locally with other people with similar mindset, you might start to run in these circles, which usually are incredibly tight. The same 15-20 people start showing up and they all do different stuff -- lending, agents, rehab, maintenance, property management, etc. 80/20 rule applies -- 80% of the business in this area are being done by 20% of the people.
Put down the phone and start looking for local meetups. And drop the concept of "building your team" -- understand who you need and what you need them for, pay for their services as appropriate, be courteous, fair, and prompt, and you'll start to build the necessary relationships to help you succeed in this business.
- Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes5y
Originally posted by @Tanner Foy:
Me and my partner felt as if we did not have a successful day looking for our team. Spent about a total of 8-9 hours making calls today. Between lenders, brokerages, contractors, property managers we just did not feel as if any body was very interested in what we are trying to do. We did have only one win today in a lender who would does an 80% LTV Loan. Maybe our approach is wrong ??
Basically we told everyone we are new investors (don’t know if that is what threw them off), let them know our long term goals, and how we could provide value. You scratch our back we scratch yours. Most people wouldn’t even pick up the phone, the few who did seemed to busy to deal with new investors or just did not want to, and did not get any call backs from any messages.
Is this generally the process of finding good people, or are we doing something wrong...? Advice ??
DFW South Dallas Area
Hey Tanner, a few thoughts:
1. Folks are busy right now. Market has been crazy hot. They have a lot of business coming in and going, at least the good ones do. So, they unfortunately are less interested in helping newer investors.
2. I'd give folks a bit of time on the call backs, for same reasons as #1.
I think you might benefit from going to more meet ups and real estate events where you can engage with these folks organically. Nothing at all wrong with over the phone, believe me. With that said, informal and in person is often quite effective as well.
- Flipper/Rehabber · Houston, TX · Member since 2020 · 88 posts · 59 votes5y
@Bruce Lynn I absolutely love this mindset!! Great advice!!
As @Bruce Lynn @Duane Alexander @Bobby Nilsen @Ian Walsh pointed out: Focus on finding deals and everything else will fall in place. Connect with wholesalers to find deals fast. Connect with local first then regional banks for lending.
- Investor · Menifee, CA. · Member since 2021 · 48 posts · 29 votes5y
@Tanner Foy I agree with having a team. Especially if you are buying long distance properties.
Having people around you that you can trust and depend on is valuable. It might not be necessary but it is valuable.
Best of luck!
John Minock
- San Antonio, TX · Member since 2016 · 240 posts · 163 votes5y
@Tanner Foy Most of these responses you are getting are spot on. Turn the tables - your profiles says you are in construction - if someone came to you and said “would you build me a fence?” But didn’t know when, how big, what type or any budget in mind, how could you help? You’d say, come to me with the actual project and I can start to build a plan. Best offer luck to you!
- 5yZach LemasterBusiness MemberRental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
Putting together the right team can take years sometimes so try not to get discouraged. Just stick with it, and continue to make connections. Even people that you originally put on your team may need to be replaced over time, but it's all about taking consistent action! Stick to it, and try not to lose motivation. We all have those days! Success comes with persistence.
- Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes5y
@Tanner Foy at least you took some kind of action. I would say keep looking and make you a list of your top 5-10. Since you guys are a team, I would suggest one person look for deals and the other look for contacts. Most people are so busy, they really want to hear if you have a deal in hand.
Originally posted by @Tanner Foy:
Me and my partner felt as if we did not have a successful day looking for our team. Spent about a total of 8-9 hours making calls today. Between lenders, brokerages, contractors, property managers we just did not feel as if any body was very interested in what we are trying to do. We did have only one win today in a lender who would does an 80% LTV Loan. Maybe our approach is wrong ??
Basically we told everyone we are new investors (don’t know if that is what threw them off), let them know our long term goals, and how we could provide value. You scratch our back we scratch yours. Most people wouldn’t even pick up the phone, the few who did seemed to busy to deal with new investors or just did not want to, and did not get any call backs from any messages.
Is this generally the process of finding good people, or are we doing something wrong...? Advice ??
DFW South Dallas Area
Hi Tanner,
With a lot of they people you may have to leave a voicemail.
Try this "Hi this is Tanner from X city, I'm looking to buy a (duplex, etc) and will probably need a (plumber to scope the sewer lines) (or whatever you need)...Do you do that and how much does it cost? Please call me back and let me know at xxx.xxx.xxxx.
If they NEED/WANT work they will probably return a call like that. If they don't--don't hold your breath.
Good Luck!
- Investor · Nashua, NH · Member since 2017 · 23 posts · 13 votes5y
"Money talks and bull**** walks"
People will be much more willing to chat it up if you bring something to the table - in this case money.Don't get me wrong, I love your approach and the motivation you have, however I feel you could focus in a way that is more fruitful in which you won't be feeling like you had a failure of a day. For example, yesterday I had a Realtor call me on a FSBO that I have, he had a potential buyer. After chatting for a bit about the property, and what I do, he asked if I work with other Realtors to sell any other properties. The answer was yes, but I have a "lot of birds to feed" - friends, colleagues, etc. that are Realtors. I had no problem working a co-broke on this property, but the people I work with add some intrinsic value to the deal. Either they bring deals to the table, maybe they're absolutely amazing at selling and holding the line, or they're fantastic at managing tenants. I'm not just going to try a new Realtor when I do have relationships with a handful already. And I got those by having properties to list, (mostly, I do toss friends listings as well).
So yes, I agree with every one saying get your ducks in a row with a lender. This will show that you're ready to go, and if a Realtor gives you time, and properties it will be mutually beneficial for them as well!
But don't not talk to people! You just need to go about it in a way that respects everyone's time! Join a Real Estate Networking group, or a Young Professionals networking group. That's were people are looking to chat about what they do and build a network or team. You might even find people that are new to their field that have the time to focus on what you're looking for as well, so they'll have more time and be excited for a new relationship.
I like your spirit and you're approach, but if you feel like its not working, the timing may be off. And once you get a dew deals and financing figured out, you'll find people wanting to talk business more.
- Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes5y
Tanner, don't sweat it , Just go to local networking , host you own and meet people naturally , little by little you will make good friends and colleague and that will help you create ( the band ) "metaphorically speaking) ..
Just be out more and you will see how you going to be attracting people your way..
- Specialist · Dallas, TX · Member since 2020 · 78 posts · 28 votes5y
@Tanner Foy
Hey man you need to give yourself some credit if it was that easy we'd all be doing it!!
Just except the fact that not every day is gonna be perfect l, just keep going!!
From your post I'm clear on exactly what you're trying to accomplish?
Join the conversationCreate a free account to reply, vote on answers and follow this thread.