I am interested in knowing if you have any suggestions regarding information that I can refer to as I go through the process of evaluating prospective members for a real estate investing team.
I know that there is so much great information here on BP and I don’t want to miss anything that could prove to be extremely helpful in assembling the best possible team. So in addition to my own search efforts, I am reaching out to the community for input.
Any posts, articles, etc. that you have read here and could refer me to would be greatly appreciated. I want to make sure that I ask the right questions and consider all that I need to in such a process.
Also, any additional suggestions that you have in regards to what I should look at when considering realtors, tax professionals, inspectors, insurance agents, contractors, title companies etc. would also be greatly appreciated.
Thanks in advance for your input.
The reality is the team will built itself as you venture further into real estate.
You are in houston, so use a TREC contract and most title companies are equiped to handle most transactions. You dont need a CPA yet as the business isnt large enough and you dont have to have an LLC, though a basic one would serve you well.
Spend some time drumming up deals! The other details will come, deal flow is the hardest.
Team up with people who have different ideas than yourself. At the very least they will provide a different perspective for you to weigh on your decisions.
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Thanks @Sam Craven and @Tim Butters
Hi @Karen A. !
Welcome to the forum.
@Sam Craven is spot on. Get the deal flow going and hang out at the local real estate investor events. There are a ton of them and you will start seeing the same faces over and over again. Introduce yourself and ask questions. You will eventually get referrals for the services you need. Just watch out for guru wannabes, they are out heavy in our area right now. In other words, don't pay anyone to ask them questions!
My biggest challenge has been finding good trades people who want to work. Be vary careful. There seems to be no shortage of flakes, drug addicts, scam artist, and assorted dirt bags in construction.
@Account Closed Your absolutely right. The construction industry is full of hacks. Unlike real estate investing, all it takes is a few tools and a contractors license which is easy to get in most states. No capital required.
For many ex-convicts it is the career of choice.
I've seen a lot of people on these boards advising others to make sure contractors can provide insurance and workers comp. That's a great first step.
My suggestion would be to request qualifications or an RFQ (request for qualifications). This would include the contractors resume, hopefully highlighting work completed similar to your project. Also, could include resumes of their key employees. Finally, I would ask to list references in their RFQ and follow up on them. It can be as simple or complex as you want.
To protect yourself further, write something into your contract about owners ability to drug test at the contractors expense. I would recommend using AIA contracts and altering them to suit your needs.
However, in the end, you always get what you pay for.
@Tim Butters has a good point about looking for different perspectives. It's only natural to seek out people that have a similar personality to our own, but when you're forming a business team there are advantages to having people with different backgrounds and different styles.
For instance, if you're a quiet and reserved person you might not jump in the direction of someone who is very outgoing and social. But if they're in marketing or sales then that might be a good thing. Or if you like to surround yourself with outgoing people, you might miss out on an excellent partner who excels at doing research quietly and alone.
@Tim Butters , I second Mark, that it is important to have different prospective and styles of conducting business.
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