If you look at any great thing accomplished by mankind, you will notice a pattern. It does not matter what this great or successful thing is, when it was done or even where. There is one fundamental thing that you will see consistent no matter what and that is it was done as a team. Now I know what you’re thinking. You are thinking of all the great things
that individuals have done. Won big elections, or became the world champion in a solo sport such as boxing or won an Olympic medal of some sorts and while the individuals are what you see initially you must look beyond that and see all the help and support from their coaches, mentors and those that were there to help the keep working and push through when times were tough. No matter what greatness was achieved we all need help at one time or another and running a successful business in real estate, or any other business for that matter is no different. You need a team and support network behind you and I’m going to tell you why.
For this blog, I’m going to focus on building a real estate business, primarily because that is what I know and do; however, the principles and reasons for needing a team can be slightly altered and fit to your industry or business. These team members are not in any specific order of importance as they are all vital for their own purposes and reasons.
When you first start building your business, things will be hard on you mentally. You will come up on road blocks and challenges often needing some creative outside of the box thinking and if you are like most people it can be easy to develop tunnel vision on your problems. This is where a good support network of close friends and mentors in and out of the industry will come into play. Now the only problem with close friends is you can only go so far with them. If you are serious about building a business, then investing in a coach could be worthwhile. You will have someone dedicated to you and your problems, if you pick the right coach (and that is the point) you will often get someone of good quality that has walked the walks and faced the same or similar problems than you are encountering. A good coach is worth every penny if utilized properly and of course it must be the right coach that can work with you and your learning styles and personality.
Depending on the type of real estate business you are building will focus on the types of field partners you need. Some will be universal but we are focusing on an investment real estate business which means you will be looking for real estate investments and potential buy fix and resell (also known as flips) as well. This means members of your team that you will need will vary but one of the essentials will be a good contractor. Now keep in mind you will be looking at a lot of properties and if you send your contractor out to look at each and every one they will become very tired of this and you will burn them out. So, I suggest you spend a little time with this one and learn how they estimate on a basic level. Explain what you are doing and keep in touch with them on pricing for things in between jobs. Tell them you want to go out and preview properties and do a “high level” bid (basically “X” amount to paint a room, “X” amount for flooring, “X” amount for windows etc.). This way if you can make sense of the numbers and they appear to be doable then you and send your contractor to give a better number for you to see if the property works. They will be important to you not only during your due diligence (basically when you doing all your research on comparable sale values, work needed etc.) but also when the time comes to get the work completed. So, depend on them when it counts but also use them as a learning too or resource so you can send them out to only deals that have real potential instead of your personal secretary as you will burn the bridge and good contractor team members are hard to find.
Let’s assume that you are not a licensed real estate agent; however, I am a firm believer that having a license is far more beneficial of having one than not for building this type of business. You will need access to properties for sale and access to information to run comparable sales data on potential investment opportunities. Because of the mundane work involved with this I suggest getting a license but it is always important, even if you have a said license, to enlist another agent or two to work with you. They don’t have to work exclusively with you but if you forge alliances and allow them to bring you properties that you may not have found without them then you let them represent you and earn money on the transaction acting as an agent. After all you are focusing on the investment and not the commissions so what’s it matters if it’s a good deal and makes sense. Plus, it’s always good to talk to other agents on a regular basis to bounce ideas off, get their feedback and take on the market overall and sub markets you may not be entirely too familiar with.
The last type of team member I’m going to talk about is a good administrator. Before I go on I’m not saying that these are all the team members you need, no I’m saying that these are some of the key ones you need but there are others that you will need as you go on. A good admin will not only keep you legally compliant but will help you remain efficient and not let things “slip through the cracks.” Inefficiency and details sliding by do nothing but cost you money, and trust me it can become a great deal of money. So, keeping a good admin on board will help prevent that and help maximize your work flow and transactions.
As I said there are more key team members that you will need a various time and the roles of these team members varies based on how big and active your business may be. Just remember that it’s very hard to do it all on your own and be successful with it for a long period. As you grown and become more successful remember the team that helped you get there and continue to take care of them just as they are you.
Real estate Broker, Author and Investor.