How do I build a team?

Question

My husband and I own 21 units and have been managing everything ourselves up until now. We would like to scale to 100+ (Using BRRR) but realize we need to build a team of people to help us, but don’t know where to start with hiring and who to hire. My husband does about 80% of the renovation work himself because quality labor is incredibly expensive and hard to come by in our area. So hiring out for labor seems like a non-option right now. Rent collection, paperwork, and finances is my genius so it seems like that is also a non-option. So far we have an accountant who handles payroll and taxes and a part time handyman. Who was your most important hire in order to scale? Any input is most appreciated.

Charles Carillo · Answer

@Elena Scott

You guys seem to have your own areas that you specialize in but, if you want to scale you will need to give up some control. I would hire a bookkeeper, and possibly change that part-time handyman into a full-time one. Make a list of tasks you consistently do (daily, weekly, monthly), and outsource them. You both can still utilize your skills to review work done and review financials but, I would really focus on finding deals, that should be your best ROI.

I self-managed my properties for 6 years before taking my own advice, and I wish I would have done it earlier on.

Amir Khan · Answer

Elena, I currently own an out-of-town apartment complex. The most important hire for me was the property manager. Your situation may be different and this may not seem important, but for me to have a reliable, trust worthy PM has been crucial. In addition, I have a local bank, real estate agents and handymen in my team.

Elena Scott · Answer

Great advice, I think we do need to give up some control, thank you!

Ragan Manning · Answer

@Elena Scott I agree with @Charles Carillo on needing to let go. You’ll never scale if your attention is going to areas your not the master at. If you focus your energy on what your good at (aka finding deals) then find others to help with the rest. Slowly start hiring out and using the time you would have spent doing that and focus on more deals.

Kyle G. · Answer

Elena, this post is tagged as Pittsburgh, PA; are you and/or your portfolio based in the area? If so, you should connect with some of the local REI groups and see who can bring value to you and your mission! I recently moved to the area (south of PGH), and am working on networking with other pros and investors in and around the area, as well. I'd love to connect and see how we can add value to you! I completely understand the intimidation of scaling and letting go of control; but it's definitely a necessary step for growth!

Alex Deacon · Answer

@Elena Scott very impressive what you have accomplished thus far. keep doing what you are doing and start itemizing the list of tasks you can hand over to someone. It doesnt have to be all at once. Dont start delegating until you are maxed out. I have been at this 30 years and have made just about every mistake possible. You will get there. Build the base of the pyramid and then keep adding blocks

Alex Hileman · Answer

A good team is so important! There are a few groups specifically designed for local real estate investors and agents to network and share contacts.

There are also in person events like happy hour mixers you can attend. I personally like to meet people face to face before I work with them. I work for New Western and we host a happy hour mixer once every 3 months for Real Estate Investment professionals. We just had one at Southern Tier in Pittsburgh last week, and the next one will probably be in October. At these you will meet a mix of agents, lenders, contractors, investors, etc. and you can pick their brain.

Lastly, reach out to our listing agent for contractor recommendations. Your husband may be doing most of the labor, but it would save him a lot of time to contract out the jobs that require less skill and are more time intensive, like the painting or cleaning. Your local agent should have a few contractors they can recommend that will free his time up to do more of the specialized work.

Yori Dean · Answer

I have a cleaning business in the pittsburgh area called Dean’s Cleaning. https://yelp.to/cIJ9jeAls4. We clean airbnbs, new construction sites, trash outs, foreclosures. You name it we clean it! We’d love to be a part of your team!

Elena Scott · Answer

Hi Kyle, I am also south of Pittsburgh in Hickory and would love to join this network. I will look into it. Thanks!!

Bob Lachance · Answer

I agree with Charles Carillo, you will need to get some of the tasks off your plate and focus on acquisition to build your portfolio. Have you considered hiring a remote assistant to help with this?

How do I build a team?

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