In line with the common saying, “No man is an island,”; one saying which readily comes handy in this context. No one has it all, and when it comes to investments like real estate, which is prone to global interest rates and related regional variations, the need to build a team that makes real estate investing decisions worth it is highly essential. Experts in the industry have at one point or the other spoken or gave their opinions on the need to build a team for real estate investment decisions. When it comes to this aspect, building a real estate investing team is not as hard as individuals who are not privy to insider information have made it out to be. If done intentionally, it is a fun process as it solely involves surrounding yourself with individuals with the same ideology, the same aim and objectives as yourself as relating to making the best decisions as long as real estate multi-family investment is concerned.
Initially, it is sometimes the thoughts of real estate brokers that potential investors may be intimidated by the presence of a great team in brokering a favorable deal. They may believe that there is the possibility of their position in bargaining being threatened as they are dealing with more than one person. This should, however, be the least of worries as to get a credible building team, you need to effectively network and link up with reliable individuals who have a good understanding of the workings of the real estate industry. Conduct very effective interviews and also consider referrals from past acquaintances and work colleagues to fully determine how worthy they would be to the aim you want to achieve with them being a member of your team. For you to put a great team together, you do not have to go to the extent of putting up Ads on every trendy social media platform, advertising for willing individuals who share your dream.
As mentioned earlier, networking is vital to building a great team to help with making crucial real estate investment decisions. In networking, you do not have to get across to everyone, even those that are of no use to what you have in mind. Else you risk increasing the size of your team with no direct returns on productivity. In building your team, you only need to incorporate individuals that are vital to the achievement of your objectives. You need to connect with individuals of like minds such as real estate attorneys to address all legal issues relating to real estate investments. You also need to connect with commercial real estate brokers, building managers, and a multi-family mentor. This mentor should be one of credible standing in the real estate world, one with the experience to help with untangling knotty issues when you come across them. One should have it in mind that you do not get a good team by surfing online or reading books, hell, Nah! You go all out, connect, and form useful ties with individuals that you can be sure are ready to get down to business. The main aim of this compilation is to give you insights on the useful tips you can make use of to build yourself that dream team.
No matter how you look at it, real estate investment is not a one-person sport; it is not a one-man show. It entails you building a team which must be successful in achieving a set of underlisted goals. Hence, if failure is no option, you need to assemble a credible team, one which is not built to fail. It does not matter the number of deals they are going to be working with, either one (1), five (5) or thirty (30). Getting a team requires the recruitment of many different professionals who have a perfect understanding of their skill sets. When you can find a group of people who has the same ideologies as you, a team that aligns with the aims and objectives you intend to achieve in the long run, you can make your life easier in many ways than one. With a credible team, you can quickly run to your team for answers, and as they say, multiple heads are better than just a single head, you are in safe hands as it is rare for a group of people to run out of ideas on a single subject. In building your team, there are 6 key teams you need to form to ensure a smooth sailing experience.
What is a multi-family real estate team without a credible legal team? You need efficient, reliable legal paperwork when dealing with real estate. Some attorneys can help with the buying, sale, and even owning real estate properties. Certain clauses in the real estate world require the attention of a credible legal practitioner or a legal team. A legal team can help with the handling of contracts, setting up appropriate and acceptable legal structures for all the parties involved. There are some confusing terms involved in setting up real estate contracts and everything in between. A competent legal team can help with dismantling this and making them clearer so one can determine a bargaining position properly. There is also a tendency to make costly mistakes in drafting and signing contracts. In all, there should be provisions for real estate, securities and exchange attorneys, transaction professionals, for all the transactions.
This is one of the first teams to form as a real estate investor or a real estate aficionado. The members of your acquisition team would consist of those who can easily spot an opportunity or a potential opportunity as far as from a mile away. They are very relevant to the overall functioning of the team, as they without spotting these opportunities, you cannot be termed a real estate investor, as investing in these opportunities make you. The team members are also skilled in assigning value to any property they have settled on as an opportunity. The members of this team include marketers, appraisers, scouts, inspectors, brokers, and credible bankers.
It is safe at this point to say that none of your plans or hope for investing in real estate is achievable without the money, the raw cash involved. This equity expressly means the amount of money needed outside of financing. It is the amount of money you are paying to finance your portion of the purchase. As far as this equity is concerned, you can choose to pay singly or pay as a group of investors as this makes things more comfortable in the long run. When the pooling of resources from a group of people is involved, one needs to adhere to legal rules for the pooling of investors. Experts have also advised that the skill of competent and qualified security and exchange attorney can be helpful.
Finances in investing in real estate are one aspect that requires proper planning. Sometimes when you set your eyes on an opportunity, you may not have the financial muscle to pull off investing in that opportunity at such a given time. No one says it is a crime if you decide to get a team to help with financing. This team typically consists of members such as wealthy private individuals, mortgage brokers, lending institutions, etc. All these aforementioned entities will help with the provision of the money needed to kickstart your investment. As many are predisposed or are structured to provide this kind of help.
One of the important functions a real estate investor has to fill in is in the aspect of property management. There is a need to maintain or find ways to improve the value of any property invested in, so in any case of resale, the value of the property remains appreciably high. After the purchase of a property, a single real estate investor cannot manage the property concerned alone; and one has to form a team to operate your property daily. The property team will be in charge of properties and repairs, overall maintenance of the investment. This team collects rents and leases on your behalf, making the property management team one who can make or mar your investment. So only credible, tested, and trusted individuals should be brought in to form a part of this team. For a third-party management team, you must make the best choice of picking a platform that is experienced in the type, size, and area of your property.
Lastly, one of the things to talk about, one fundamental and essential aspect of your investment you need a team for, is your accounting. There is no way, and you are making all these deals, recognizing opportunities, pooling resources together from different bodies, carrying out repairs and maintenances on your property in a bid to increase its value, without proper accounting. This one step is very fundamental, and many investors tend to make mistakes. There is no alternative to having accurate accounts and up to date recordings. There is need for you to know all that happens as regards the finances of your business. Outstanding accounting will ensure you have an idea of how your business is doing; if you are making profits, when to sell, market trends, where the problems lie in your investment. Investors need to be very careful about getting involved with businesses or real estate properties that do not have accurate or efficient account keeping. Hence, there is a need for you to have a team for this as knowing when to ask the right questions will go a very long way in making your business decisions way easier. Costly mistakes will also be avoided, so go there and get things done, network, and get a team of the best minds, with your interest at heart together.
Networking has been mentioned earlier as one of the keys to building a great team. Other factors to consider when deciding to build your team is first to get your house in order. This is one fundamental thing always to consider. In line with Jan O’Brien of the Real-estate builder, who asserted that the foundation of building a successful real estate team is to have your own house in order first, as every play starts with a flexible game plan. In building a team, you need to set your aims and objectives, set your revenue goals, and reconcile these factors backward to see or determine the leads and the team members you would need to meet them. Other facts to consider are:
• Always know who to hire and when to hire
• Be sure to do your math
• Never forget the little things: this is essential as when growth happens; consistent growth at that, there is the tendency to forget the most important things that stick to the mind of our clients when business is concluded. There is a need to make a good impression and strive to retain it when carrying out businesses subsequently. Never make the mistake of forgetting or ignoring these little things, which instigated the growth of your company in the first place. There is a need for consistency. Be proactive with your decisions, be relatable as most times clients do not have the sound understanding of real estate as you do, a significant reason you are in that position. Hence there is a need for you to strive to make sure your clients make the best decisions that would accentuate their bargaining and investment positions.
• Be sure to hire right
• There is also a need to make use of these recommended four trait personality combinations. This assessment is one that has been touted by leading opinion givers in the industry and how these personality traits have come to influence investment decisions. Each team member can be asked to rate their affinity or propensity for each of the following characteristics.
Lastly, with this compilation, we are of the hope we have been able to fully explain to a real estate investor or participant on the need to get a team together, assemble individuals of integrity and reputation to make these crucial decisions on your behalf.
Charles Carillo is the founder and managing partner of Harborside Partners. He has invested in over $25 million worth of real estate, in several states, and has extensive knowledge in renovating and repositioning multifamily and commercial real estate. Charles holds a BS from the Connecticut State University.