Hire Talented Team Members If You Want Your Business to Grow
“The size of your success depends on the size of your belief”… let me re-phrase that “The size of your success depends on the size and quality of your TEAM”. Team is everything when it comes to real estate investing. Especially, investing thousands of miles away from where you live. You do not need a huge team to be successful our team in the United States consists of 13.
My team consists of property managers, realtors, USA Accountant and a local Accountant, USA attorney/title company, insurance brokers and contractors. Coordinating this is a big job and you are not going to manage a real estate portfolio thousands of miles away on your own. You need team members on the ground that can run all this for you. It is a great way of leveraging yourself, having competent people to do specific tasks and activities.
Lets talk about property management… I would recommend having a property manager that lives and knows the area. I would not recommend doing the property management your self. It is the quickest way to turn you off real estate investing and anyhow, you are in a completely different state or in my case a different country.
Property managers will handle the screening of tenants through a combination of computer software, questions and references and checks. Once the property manager has established a relationship with government agencies and tenants there is always a flow of tenants available.
Property managers can make or break your real estate business. It is challenging, very challenging to find great property managers. You need to ensure their values align with your own. Especially when it comes to honesty, integrity and loyalty. Property management is an unregulated business in the US and therefore makes it vulnerable to unscrupulous people. I have heard a lot of stories along the way about property managers not doing their job properly and leaving out of state or country owners without tenanted properties.
As a successful real estate investor you are required to build relationships with good quality contractors. Another challenge in your business is finding them and keeping them. One general contractor in particular I have had in the business of rehabbing all my properties and has been with me since 2008. It’s great, and would be a very hard position on the team to fill if he left. We know what each other thinks, what products I like in my properties, a lot of trust has been built up over the years.
Some of the other contractors that I have created relationships with are roofing and siding, plumbers, electricians, heating and air conditioning. When you take on bigger projects you might need excavation, foundation and concrete work.
Your Accountant and Attorney
Another key team member is your Accountant and Attorney. Both these roles assist in the process structuring your business in the appropriate entities for asset protection and ensuring the correct tax planning for your situation. Having a great accountant ensures that all the local, state and federal tax returns are completed by the correct deadlines. Missing a deadline to lodge a corporate federal tax return can cost you upwards of $10,000 in fines and penalties. So extremely important to ensure you have those reminders coming in from your CPA. Both attorney and accountant can work together in circumstances to get things done.
This is a key team member when you are 1,000s of miles away and you cannot rely on mail to get the notices by the due date. The key is to choose an insurance broker who understands that you will be buying properties that need work and that are empty at the time. The insurance policies you receive will be different from the ones traditional homeowners receive because many of the properties you buy may not have working mechanicals. You also will be purchasing within an entity, which requires a different policy again.
Another key team member is the realtor; I have multiple realtors that specialize in different neighborhoods. You require realtors to research properties according to your criteria, to run sales comparables (comps), view properties and take pictures and video, they can also make simple property repair lists. Once you have a relationship with a realtor, he or she will often let you know about a potential deal before it ever gets listed.
All real estate agents are required to input their listings into the local Multiple Listing Service (MLS) on the date they sign a listing agreement with a seller. Therefore, all listing volume is tracked within the MLS database and by the local board of realtors. It should be noted that there is a definite benefit to creating a long-standing relationship of trust with your realtor.
The success of my real estate business is down to the quality of my team. I live thousands of miles away yet I have team that everything to make my business successful. With any business online or offline "The size of your success depends on the size of your team".