Should I start my team with my first property?

5 Replies

Should I build my team even though im starting to get my first property? Do I have to wear all hats? Or when should I build my team?

this is sort of vague question, but yes, you need to build a team before you start.  Without a good broker, you may end up with a terrible deal.  Without a good contractor, your house may be filled with issues that becomes bigger later on. without a good lender, your money is stuck. and without a good property manager, you'll be evicting a tenant every other month, or you will just have lots of headache dealing with tenants and get discourage and stop investing. Just my 2 cents.  Find a broker that specializes in investment properties first. he or she can probably point you into the right direction for the rest of the team. 

I agree with Michinori except I would recommend you be your own PM at least to start with. It will be a learning experience on how to properly vet your first tenant and handle issues. If you want to turn it over to a PM later then so be it.

I personally handle my own management and find it pretty easy as I have systems in place and a great handyman and AC company. Sites like thumbtack.com allow you to find local specialist for things a good handyman can't handle.

I'd focus on building or at least identifying your team first, and I agree with @John Underwood with an added thought.  Before I ever consider buying another asset I always check with a PM first in order to ask what asset is paying the best rent and where.  Then I compare that with my initial numbers to see how close I can hit the sweet spot they've described.  

And, I ALWAYS use a real estate agent who also owns rental properties because he or she is going to be much better positioned to know what you need.  For example, an agent lacking their own portfolio is going to hype a house with a large beautiful back yard with awesome landscaping not knowing that a renter doesn't want to spend an hour mowing the yard, and will certainly neglect all the beautifully arranged tiered flower pots resting comfortably next to the 14 foot arbor adjacent to the small pond near the back fence.  Your agent needs to be on the same page as you because they'll steer you away from what you think is the perfect rental investment.  They know, based on experience, that isn't perfect for reasons they'll explain to you.  

Same with a CPA. Find one that has clients who own investment properties. Don't pay a CPA who's going send you a bill for their education if they don't have REI clients. Its not about someone preparing your taxes. Its about building a team of people who are going to offer you advice with every investment you make BEFORE you pull the trigger.

I didn't have a team when I first started, I carried the load. Now I have certain people I call upon, but that came with experience.