LOL this is like what came first the chicken or the egg. It's beneficial to have a team in place when you find the deal but it doesn't mean you should pass on a deal because you don't have a team. Do both at the same time. Look for deals, build your team. Having the right deal ready often attracts a team.
@Destiny Prince I recommend the team
@Destiny Prince - It is always easier to talk to potential partners when you have a live deal. People struggle when one talks theory; in today's market, deals are harder to come by. If you have a live deal, everyone will take you more seriously.
Thanks guys, gives me something to think about.
Local i'd probably say do the deal first. You can drive by and assess the property, area, traffic , noise, etc and probably already know someone that knows someone to hook you up on the rest.
Out of state no way without a great team. Hard to drive by the property on a quick beer run and make an evaluation when you don't have a clue about the area, schools, suppliers in area, which streets are safe after dark, etc.
Funding, well it all depends, just make sure you know you can and how you can before you waste a bunch of peoples valuable time. Nothing makes a team disappear faster than someone not being in a position to do what they say they will be able to do.
@Destiny Prince In my experience, the Deal. The team follows as you can ask for recommendations from Title offices, Agents, Lenders, there are so many people involved that will have the experience and knowledge of helping you build your team. As you grow, you'll meet more people that are naturally attracted to your growth and can then further refine your team.
I've read that creating a team first is the best way to go for a few reasons. Most of the people in your team should come from referrals and vetting their references (if possible).
- Contractor - having someone you have already vetted giving you numbers for a project will increase your confidence for your offers
- Lender - knowing you can make the deal happen and for what cost
- Property Manager - Once you have identified this person, you can use them to help you vet a deal, give you an idea of the type of tennants you will have in a certain area, and can also give you an idea of how the area has progressed for a certain deal
- As a side note, one of the podcasters mentioned getting the business journal for whatever area you are looking to invest. This type of journal can give you key information on incoming jobs/businesses which can be helpful come deal time
For me the most important person on my team is the lender, no money, no buying.
Once I know what funds I can play with then I start working the rest.