Last week I wrote an article about the pros of entrepreneurship and hiring help for your real estate business. In the article, I alluded to the fact that a good real estate investing business should be able to grow through the hiring of additional workers in specific aspects of the business. However, additional help does not necessarily mean hiring W2 employees (which can add layers of additional risk and tax liability).
For the real estate investing business owner who wants to leverage the help of other workers without taking on the burden of employees, here is a list of potential hiring strategies:
Getting Help from Real Estate Investing Team Members
1.) Real Estate Agents: The most obvious source for assistance in your real estate business is real estate agents and brokers. These professionals are licensed and as such, typically receive compensation through commissions at either the purchase or sale of a property. They can be an excellent resource for contract real estate work which may include the following activities: birddogging, referring buyers, showing properties, open houses, broker price opinions, etc.
2.) Attorneys: Attorneys are another great resource for work that can be contracted out. Attorneys can also be compensated through fees collected at acquisition or disposition of a property. Attorneys can be very useful for the following: researching title, creative strategies involving tax deeds and liens, syndications, buying and selling of real estate notes, etc.
3.) Loan Officers: Loan officers can also be a great tool for a real estate investor. Many loan officers have a pipeline of buyers (or future buyers). Real estate investors can use the help of local loan officers to build a list of buyers and lease purchasers for their properties.
4.) Virtual Assistants: Odesk.com/Freelance.com /PeoplePerHour.com are all websites designed to help you hire out almost any kind of contract work specific to your needs. Whether you need to build a website, Facebook fan page, Craigslist poster, etc. – outsourcing these types of projects to a virtual assistant can be a very creative way to get work done without the need to hire an employee.
5.) Simple Online Tasks: Fiverr.com /Goferr.com/ OneDollarGigs.com/ Outsourcerr.com/ Jobsfor7.com /Mycheapjobs.com are all sites that offer simple services that can be of huge benefit to your real estate business. Whether you need more Twitter followers, Facebook likes, podcast downloads, etc. – these types of sites offer quick results for very low prices.
6.) Local Ads: Craigslist.com/Backpage.com are popular sites for local job postings. Finding somebody close to you that can put out bandit signs, post flyers, birddog, etc. is a great way to get “boots on the ground” help in your area. (Just make sure you set up the work in such a way that the relationship does not get mistaken for employment rather than contract work).
7.) Local Contractors: Working with somebody who already has knowledge of real estate construction and can operate under their own existing business is another great strategy for real estate investors. For the investor who wants to subcontract the viewing and estimating of potential investment properties, hiring somebody with an existing business can be a great strategy to avoid the need for an employee.
As you begin to identify areas in your business that need additional attention in order to grow, think through all of the resources available to you both through the internet and locally before blindly hiring an employee. While there will be a point in a growing business when hiring an employee that works in the office will probably be necessary, outsourcing as much work as you can is great way to minimize costs and liability for a growing real estate business.