Phoenix, AZ · Member since 2014 · 27 posts · 6 votes
I have read many literature about the benefits of working with a team. Many of these examples show the investor and the contractor as well as a Realtor and another investors. What I am curious about is how much benefit is there when partnering up for a deal from start to finish? How can you reach a mutual conclusion about how the investment should be handled when you have another's input? Is it better to lead the team yourself? Essentially, I'm curious about the pros and cons of each and how personality plays a part.
@James Wise and I take a very similar approach. I have 2 business partners. That's my personal preference. However, WE have a "team" that extends beyond the 3 of us.
BTW...don't stress about forming your team. Learn to analyze deals. Learn your market. Become an expert in your target market. Get involved in your local REIA and get references for things like lawyers, agents, GC's, title companies, etc. Those relationships will happen. But, you will lose your shirt in a hurry, if you don't get your numbers right. Remember, you make your money when you BUY.
@Christopher Burns There are different types of teams. Most of the references to "team" you read about in relation to starting up your REI business are talking about your support team. It isn't a team in terms of a profit sharing arrangement. You're being encouraged to identify the folks you will need to be able to leverage to complete your deals.
I'm currently wholesaling. My "team" consists of an attorney, realtor and title company. They get paid for their services, based upon their standard rates &/or fees. They don't get a % of my profits.
@Hattie Dizmond That does create clarification. I have a friend who saw my wholesale strategy and wanted in. He's not a bad guy but I kinda feel like it was my cake and he just wants a bite. Thankfully, he is giving me good ideas and helping me to expand my target goals. I'm still looking for my attorney and title company though I'm sure that i will establish long term business relationships with them as I grow and learn what I am looking for in that respect.
I wouldn't want to do it any other way. It works if you partner with those that balance you out. My partner is a G.C & I'm a Realtor it has worked out very well for us. We have all the bases covered in house.
@James Wise and I take a very similar approach. I have 2 business partners. That's my personal preference. However, WE have a "team" that extends beyond the 3 of us.
BTW...don't stress about forming your team. Learn to analyze deals. Learn your market. Become an expert in your target market. Get involved in your local REIA and get references for things like lawyers, agents, GC's, title companies, etc. Those relationships will happen. But, you will lose your shirt in a hurry, if you don't get your numbers right. Remember, you make your money when you BUY.
Very good points! I actually have an REIA meeting tomorrow and truthfully I'm nervous but excited. As for the deals I am quickly finding out what to look for and what I can do with potential deals.