Building an Effective Team to Run Your Real Estate Business

by : Matthew Soren

Once you start building your real estate business, finding opportunities and potential deals, you're going to realize you can not do it all on your own, and even if you could you would still be better off delegating these tasks anyway.

One of the biggest mistakes beginning investors make is they try and do everything themselves or use the wrong people in the process. They think, "I will get my first deal done and once I make some money, then I will build a team". Unfortunately, what usually happens is they get stuck trying to learn and do everything in a limited amount of time, then get discouraged by either getting no results, getting scammed or burned from doing it wrong then ultimately giving up.

It is important to understand you need to work smarter not harder. This is the only way to run a successful real estate business. Not only will this make it more profitable but also more enjoyable!

Though you will not need everyone for every strategy you are focusing on, here are the top ten you should establish relationships with when you are starting out (in no particular order):

1. Home Inspectors

2. Insurance Agents

3. Mentors

4. Mortgage Brokers

5. Property Management Companies

6. Real Estate Agents

7. Real Estate Appraisers

8. Real Estate Attorneys

9. Rehab Crews

10. Title Companies

Every professional whether an agent, attorney, appraiser, etc, makes their money through different methods but these fees are minimal when you consider the money you make in comparison as an investor!

When putting together your power team, here are some guidelines to follow:

Ã?â‚?? Make sure you work with those that have experience working with investors similar to yourself. For example, a real estate agent that primarily works with clients buying large multi-units when you are wholesaling single family homes will be probably not be a good fit.

Ã?â‚?? Make sure they have experience working in the area or vicinity where you are investing.

Ã?â‚?? They should have at least 2-3 years of full time experience in the area you are hiring them for.

Ã?â‚?? Do not depend on just one in each category. For example, having 2-3 agents, brokers and inspectors will give you more flexibility, a larger network of contacts, and more competitive options for different circumstances.

Ã?â‚?? Always ask for referrals so you can expand your team using the best people.

Finally, be sure to approach potential team members with a win-win mentality. For example, when calling you can say, "I wanted to find out what services you offer to a professional investor. I would be interested to meet and see how we can work together, and I would be glad to refer you to the rest of my team."

You want everyone on your team to make money just from knowing you. Not only will they enjoy doing business with you, but you will be a higher priority in their business. Just like the other aspects of creative real estate investing, you need focus on creating win-win relationships. Success breeds success.

The bottom line is: The more you utilize the expertise of those around you, the more lucrative and *easier* your business will be. Period. Once you understand and apply this, you will be well on your way to achieve the fastest and most aggressive results possible. Remember to work smarter not harder!

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