Building a Successful Real Estate Team
The most successful real estate investing business has a team that helps them acquire a constant stream of deal flow, while also being able to close those deals as smoothly as possible. Even if you're just getting started, a team can save you countless hours and costly mistakes.
Below is a list of members you will want on your team, along with the role they play and a few recommendations of team members we use in our real estate investing business.
Best Members for Your Investment Team
Click on any header below for recommended team members.
Not all agents are created equal and many prefer to work with sellers. However, there are agents and brokers who enjoy the constant stream of business that investors offer.
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Here are some of the key interview questions to ask when you speak to an investor-friendly real estate agent: (Read more...)
- How long have you been working with real estate investors who buy [your type of investment such as single-family rentals, multifamily property, etc.]?
- Do you currently invest in these types of property yourself? [Why or why not?]
- Describe the process you go through when searching for rental investment properties.
- Do you have access to off-market or pocket listings, and if so, how often do they become available?
- How many clients are you currently working with, and are your clients in-town or remote real estate investors?
- What is the average length of time your clients have been with you?
- May I contact one or two of your clients and speak to them about your services?
- Are you able to make referrals for a good property manager, real estate attorney, lender, escrow officer, or contractor if I need help with these?
- Do you provide other services besides real estate?
- What is the best way to communicate with you? [Phone, email, text, etc.]
Appraisers help determine the value of the property you own or looking to purchase. Have a conversation with 2 or 3 local appraisers and find out which one seems to best understand your needs whether it's residential or commercial. If you can afford it, go with certified or certified general. They have more experience and must go through a training process to earn the certified designation.
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Here's a list of questions to ask when looking to add an appraiser to your team: (Read more...)
- Are you a licensed or certified appraiser?
- What is your license number?
- Where is your office located?
- Have you ever appraised similar properties in this specific area?
- Do you work alone, or with an appraisal company?
- Are you a member of the local MLS?
- How long have you been appraising?
- Do you have any additional credentials such as an SRA or MAI designation?
- Do you specialize in certain appraisal values or property types?
- What is your appraisal fee?
When it comes to real estate investing, having an attorney that understands the ins and outs of real estate transactions is invaluable! Make sure the attorney is well-versed and up-to-date on what's happening in the real estate market today.
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Choosing a real estate attorney doesn’t have to be a hard process if you ask these eight questions. (Read more...)
- What Credentials Do You Have?
- What Experience Do You Have?
- How Much Do You Charge?
- How Many Clients Do You Serve?
- How Much of Your Work Is Dedicated to Real Estate?
- Are You the Only One Who Would Work on the Case?
- What Challenges Might Appear With the Case?
- What Can You Offer That Others Can’t?
- What Can You Offer That Others Can’t?
Having an accountant on your team is invaluable in time and money saved! If you can get an accountant that understands real estate, that's gold because they can safely advise you on what deductions you can take, the best business structure as well as a host of valuable ideas you may never have considered!
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Questions You Should Ask Your Real Estate Accountant, CPA, Tax Preparer (Read more...)
- How did they get started in doing what they do best?
- When did they delve into real estate?
- If not all of it, what percentage of your practice today is in real estate?
- What is their previous experience?
- What education has the tax preparer received?
- Why did they want to be a CPA or EA?
- When are they available?
- Will they be able to represent you at an IRS audit?
- Can they provide an example of how they helped save a real estate client before?
- What other services do they offer?
- Any recommendations for accounting software?
- Would you help in creating new business entities such as LLC, S-Corp, C-Corp?
- Are you familiar with other state filings?
- Do you own any investment properties yourself? If so, what kind are they (e.g. – rental properties, vacation home, farmland, properties you’ve sold on land contract, etc.)?
Smart people learn from their mistakes. Wise people also learn from the mistakes and successes of others! Look for coaches and mentors who are where you want to be and learn to avoid the pitfalls and maximize the wins. What a powerful advantage to hook up with someone who’s been there, done that.
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Here are the top questions to ask when picking a Mentor/Coach to help you build your real estate portfolio: (Read more...)
- How many properties do they own themselves?
- How many did they buy last year?
- How many will they buy this year?
- Do they light you up when you talk to them?
- Do their values align with yours?
- Do they have the lifestyle you want? (travel, cars, houses, etc.)
- Do they have balance? Family? Work? Sports?
- What’s their motivation for being a coach? Do they need the money?
- What ongoing growth are they doing for their business and personal growth?
Property Managers offer a hands-off approach to rentals. For the usual 10%, they will screen tenants, run background checks and collect the security deposits and monthly rental income. They are also the point of contact for tenants if the property has issues or the tenant is late or moving. This is money well spent, just make sure you are still active in your business by making sure the property manager has your best interest in mind.
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Property Manager Interview Questions: (Read more...)
- What qualities make you a good property manager?
- What kinds of properties have you managed?
- Tell me about the duties you were responsible for in your last property management role.
- How do you delegate administrative tasks among your staff?
- How do you handle service requests?
- How do you encourage new tenants to lease with you?
- How do you retain current tenants?
- How do you protect the properties you manage?
- What type of insurance would you recommend for our property?
- What is your management style?
- How do you handle tenant and building management disputes?
- Why should we hire you as our property manager?
- Do you prefer to work with a team or independently?
- How do you set lease prices?
- What is your leasing process flow?
Title companies assist with closing deals, escrow, and making sure you or your buyer end up with a clean title. If you come across a title company that is by attorneys, have a discussion regarding their services. They will be a bit more expensive, but they tend to close deals faster and can handle most complicated scenarios, especially probates.
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Investor-Friendly Title Company Directory
Here are some questions to help you determine if the title companies in your area are investment-friendly: (Read more...)
- Are you investor-friendly?
- Do you frequently work with investors?
- Do you understand what wholesaling is?
- What are your closing costs?
- What is included in your closing costs?
- Are there any discounts for volume?
- In case I need to reach out to you with questions do you help as a service or is there an hourly rate?
- Are there any other fees I should be aware of?
- Are you familiar with double closings?
- If so, are you comfortable doing them?
- Are you familiar with assignment closings?
- If so, are you comfortable doing them?
- When do you run title on a contract as soon as I send it to you?
- Can you hold a contract in escrow without running title until I find an end buyer?
- Do you use wire transfers or paper checks?
- Do you pay out a file the same day as closing?
- Can you handle a closing with out-of-state buyers and sellers?
- Do you understand trusts, as used in wholesaling?
Choosing the best general contractor for your business can open up new streams of revenue such as fix and flips or fix and holds. But take your time in your selection and make sure they're a great fit for your business objectives.
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General Contractor Search
Also, here's a list of questions you can ask when selecting a general contractor for your next project: (Read more...)
- Are you licensed for this type of work?
- Which types of insurance do you carry?
- How many building permits have you obtained in my area over the last two years?
- Can you provide a list of references?
- What is an expected timeline for this project?
- Will you hire sub-contractors for the job?
- How will my project be supervised?
- What kind of written warranty do you have?
- What’s your typical payment schedule?
- Do you anticipate any challenges regarding this project?
- How do you communicate with your clients?
- What does a typical workday look like for your crew?
- Will you obtain all of the required building permits?
- Will you provide a written lien waiver at the end of the project?
Money lenders can really help your real estate investing business scale! Whether you're looking for conventional loans or hard money, taking the time to learn what's available will save you time, money, and headaches.
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Here are some questions to ask when determining the right lender for you and your investment business. (Read more...)
- How long will it take you to fund my loan after my application is complete?
- Will you provide a pre-approval letter I can use to submit my offers?
- Will I work with someone who is knowledgeable about my business and projects?
- Do you offer loan extensions?
- Will there be a prepayment penalty if I pay my loan off before the full term is up?
- What loan to value of the after repair value are you able to offer?
- Do you work with customers with imperfect credit?
- Do you have any references?
- What are your interest rates and how many points do you charge?
- What loan products do you offer?
Liability is at the forefront of most investors' minds. And that's why having a knowledgeable insurance agent is essential for your business!
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Here are a few general questions you can ask an insurance agent you're considering adding to your team: (Read more...)
- What types of policies are available to me?
- Can you please explain my policy and what it covers?
- What information do you need for an investment property insurance quote?
- What is my property's true replacement cost?
Also, if you are a landlord, then these questions will be beneficial:
- Does my property have the right insurance for an investment/rental property?
- What type or types of insurance do I currently have on my rental property?
- I have outbuildings on my rental property, are they covered?
- Is my property covered for loss of rent?
- Is my property covered for disasters such as fire, tornado, hurricane, tsunami, flood, and more?
- How can I reduce the cost of my landlord policy?
- If I own a condominium, do I need separate insurance for my rental unit?
Best Books for Building Your Investment Team
