Trusting an unknown Team. How?

[Ariel G.]

Hi.

I was wondering, how do people trust others with their money without knowing them?

Investing out of state without knowing the people seems threatening.

I wonder how people build  local teams without traveling there? What's the logic people use?

Are recommendations enough? How do you do it people?

[Peter Mckernan]

@Ariel G.

I would say it hinges on the ability to do your own due diligence while that same team member that you have met of course does the due diligence. That is driving out there, flying out to the location, running the numbers yourself, meeting the crews they have, looking over the inspection report by yourself, looking at the appraisal by yourself. This is all done prior to closing and on the first few deals that you perform with them.

I had a deal go down hill because when I went to visit one of the sellers (I meet them through the wholesaler) he did not seem to be the right fit for who should be selling the properties to us, and that was discovered on the inspection report and relationship he had with the tenants that were in the homes at the time. There was a bad reflection on him for how he handled the inspections and tenant management. All this was found out after I had flown out there, met the seller, and was working with the inspection team. 

So, do your due diligence along with the other team members and if someone on that team are not catching these issues then I would proceed with caution.