HEY BP. I am new to BP. I have been a nurse for the last 8 years and have decided that it's no longer fullfillig. I have been in healthcare a total of 18yrs. My sister, niece and I have decided we would like to invest in real estate. I know, I have heard it before, never go into business with family. But we should be okay as long as roles and profits are clearly defined. We are looking into flipping and renting homes. However my question is this. None of us have experience in real estate. I have read many times about the importance of creating a team. I would like to know what are the key players of a good team? I know you need to have a real estate agent, which I am trying to talk my niece into persuing. I myself am currenlty working towards my MBA which I feel will help us with management and possibly marketing (haven't decided which MBA to do, Finance or Marketing...decisions). But I would like to know where we each could focus our strengths. As a nurse I often feel as though I can do it all....LOL. If we knew what roles were necessary then it would be a little easier for us to focus our learning without being overwhelmed with trying to learn it all (me). Thanks in advance.
@Melissa Relf Welcome to the BP Community. This is an amazing resource for real estate investing. You are absolutely right when it comes to building a team, however, teams have entirely different roles for each aspect of real estate investing. I think you need to focus on which direction you would like to go. Once you have a clear, defined route... I think it will become more clear for you.
Now Melissa, many people have done this on their own without teams, or may have different team roles. Real estate investment teams are not preset, like a magic formula. I am only going to provide a few HYPOTHETICAL examples. These are by no means set in stone.
For some examples, you can focus on Wholesaling, Buy and Hold investing, Flipping, etc.
When Wholesaling, you would want your team to focus on marketing (yellow letters, post cards, etc), negotiation/acquisition, and another person to focus on building a buyer's list to unload the wholesale properties. But like I said, this isn't set in stone... the person who does the marketing can do the buyers list, and so on.
If you were to focus on Buy and Hold, you could either market to areas the same way as Wholesaling, or work with a realtor if you wanted to purchase off of the MLS. Both are effective, however, I prefer the MLS because I have a full time job and don't have the time to market to areas. But I also understand that I am paying more of a premium because I am not finding the sellers myself. Also, I appreciate the realtor handling the paperwork. But here, you could have team members that would take care of the property management, if you chose to do it yourself.
Lastly, if you were to focus on Flipping, you would want someone marketing (just like the wholesaling), but instead you would be making the purchase yourself. Then you would want a team member to handle the project management of the rehab work being done.
I hope these hypothetical scenarios help. Remember... many investors take on the duties of all roles. A lot of this has been covered in the free podcasts. I highly suggest listening to them. They are highly educational. Best of luck.
for me team implies those people who you use to carry out the functions of investing.
If you're just starting out, don't focus on Team building just yet. That will come. Like @Jon Huber said, decide what investment strategy you're going to go with first. After you've got that down, either start marketing or searching the MLS for deals. Then make offers.
As for getting your MBA and having your niece get her Realtor's license, I'm sure there would be some value to it but that really isn't necessary to be successful in this business.
BP is the 2nd best place to get your real estate education. Experience is the 1st. Just get out there and start making deals.
@Cameron Norfleet are you say that they don't need those on my list?
@Cameron Norfleet Well put.
@Michael Quarles Absolutely not! She will definitely need those team members. I just don't think that now is a good time to search for all of them. That will all come when the deal comes.
after you need them is the worse time to find them.
How many houses have you purchased.
@Michael Quarles Between my personal investments and the transactions that I've helped my clients with there have been several hundred. But I'm not trying to argue with you, we clearly just have a difference of opinion.
@Melissa Relf Welcome.
I've got to agree with @Cameron Norfleet that an MBA and a Real Estate license may be an unnecessary sidetrack...
IMHO - I'm not a Team Member guy because that implies we share in the Profit but not the Responsibility. Also I haven't found a service that I couldn't Sub out vs Team member.
I do think it's important to find those necessary folks with those necessary skills you'll need (@Michael Quarles noted) now versus at crunch time.
Finally, always have a backup!
I appreciate the responses. I acutally started my MBA before deciding to go into REI. I was wanting to advance my nursing career, but I have changed my mind about nursing. I just figured it would benefit me some. I was trying to focus our learning but it seems as though we just need experience. @Mike Hurney I agree with you about the profits....LOL. However my sister, niece and I ( I have a brother too) we're all interested in REI so I figured we could benefit by pooling our efforts since we are all so green. It may turn into a family business ( I have an older sister who is CPA) and it may not. But I will say this, I have my own personal goals and have encourage them to create some for themselves as well.
Thanks again everyone for the responses. I will keep team building in hind sight while focusing more on our strategy, searching and marketing.
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