Building the Real Estate Dream Team

Anything big worth doing, may be challenging to do on your own. For me, Real Estate Investing has proven to be no different!

For some people, managing a team might be as easy as riding a bike. For others, the most they have ever had to manage is themselves and let's be honest, that still seems to be a struggle for a select few.

If you love managing people and teams, skip right to the bottom of this blog to see the full list and start building your team today. For the majority of us, let's take the time to do this right.

From personal experience, I have found this to be one of the most challenging aspects of the job. If you learn to pull permits and navigate town hall, you can do that in any town. If you struggle to budget at first, you'll be better on your 5th project, 10th project and certainly your 100th project. The issue is, every time you move locations, change in the scope of the size of your projects, or a member of the team is no longer cutting it, you need to continuously reinvent the wheel and find new teammates.

The job never seems to be done and should really never be done. By the end of this section, I hope to clearly articulate as to what I believe to be true.

Building the Real Estate Dream Team

There are likely arguments for how big this team really needs to be. After years of trial and error, my suggestion is the TOP TEN! Due to the fact this can be overwhelming and take years to properly build, we will tackle this topic in three sections.

                                        Day One / Month One / Year One

Day One -

Now that you have committed to getting into Real Estate, you need to find your Core Four before you go any further. Your core four should include -

Realtor / Attorney / Lender / Inspector

The reason we start here, is the majority of us (me included) will rely on all four of these teammates for every deal we do with few exceptions. Over time, my wife and I have done deals without Attorneys, Realtors, or Inspectors involved but we would never have been comfortable doing so without the knowledge those professionals had passed onto us from prior deals.

Realtor - This should be the first stop for most investors but be realistic. The biggest realtor in town isn’t going to spend 15 hours running around town with a new investor that has not yet spoken to a lender.

Realtors can not only help you Buy, Sell and Rent out your Real Estate, they can help you perform detailed Market Value Analysis on properties of interest. A MVA by a professional can be especially helpful when the property you are looking at is off market or in an area with few comparables.

Assuming you know what kind of investment property you’re looking for, have them sign you up to get automated emails from the MLS or other listing services they subscribe to. You can also do this manually on sites like Zillow but I find if you do both, you will see properties others let slip through the cracks.

An Attorney - A good Real Estate Attorney can help you make Offers, write up Purchase and Sales as well as Leasing Documents or Partnership Agreements with language that protects YOU, the investor.

Lender - Both traditional lenders like banks and brokers are key to most deals in the Real Estate space but do not overlook Private Lending. I like to have three lenders competing on every deal if possible. Don't be afraid to pit banks or lenders against one another to get the best rate!

Inspector - A good inspector is not something to overlook. When you find one, let them know how awesome they are. Pay them to travel if needed to go to your future projects. Do anything and everything to make sure they appreciate you as a client. I believe with 100% certainty our Inspector Ken treats our inspections as if they were one on his own home.

Finding these individuals can be challenging so here are a few tips to help you get started -

Ask Friends and Family for References

Ask Other Investors - My Favorite

Search BNI Groups and Chambers for Highly Rated Professionals

Attend Local Rotary Chapter

Cold Call Professionals

Month One -

Now that we feel comfortable with our Core Four above, we should spend the next few weeks rounding out the middle of our Real Estate Dream Team -

Insurance Rep / Plumber / Electrician

Insurance Rep - Find someone at a reputable company that can cover you now and into the future as you grow. Rates and coverages can change suddenly, I would encourage you to know more than one rep well enough to do business on a moment's notice. This is a Month One punch list item for now as closings in the US still average 40+ days.

Plumber - You never think you need a plumber the day you buy a property until you do! We bought a multi family in a new city, in a different state and the water heater let go 5 days into ownership. Another property, the How Water Heater pipe snapped from corrosion 6 weeks into ownership. If you are not prepared for this to happen, you may end up paying dearly for it in the long run.

Electrician - Great to have with you on your walk through if worried about knob and tube or sketchy wiring. Even more important to have an electrician when you have tenants.

Year One -

By now, you’ve started making serious offers on properties you want to buy or better yet, have already put your capital to work and have closed on your next investment! We will spend a short time rounding out the final three All-Stars on the Real Estate Dream Team.

Handyman - We have already addressed some of the specialty trades above but a good handyman can be a lifesaver in many instances. Leaky Roofs, faucets and drains can often be tackled by you or your average handyman. Light carpentry and exterior repairs can go a long way in preventing intrusive critters and the elements.

General Contractor - A good GC is a must for big jobs. For many investors starting out, a GC is ninth on the list and someone to seek out within the first twelve months. If you’re not willing to pull permits, coordinate contractors, walk the jobsite, manage inspectors all while sticking to timeframes and budgets… then find a good GC before you scale in size. Ideally, find two or three and get them all to big jobs of different sizes.

Title Company - For some, they may never need to find a dedicated Title Company this work is typically performed behind the scenes at most bank financed deals. I would only recommend finding a Title company if you plan on doing a number of deals in a specific area and expect a number of those deals to be off market.

Now go out there, make friends and build a Real Estate Dream Team that would make any investor tip their cap!

The Real Estate Dream Team

Realtor - Buy, Sell, MVA

Lenders x4

Attorney

Inspector

Insurance Rep

Plumber x2

Electrician x2

Handyman

General Contractor - DIYers Skip

Title Company