A Team Player's Guide to Real Estate Investing
A Team Player's Guide to Real Estate Investing
Why Your Corporate Teamwork Skills Are More Relevant Than Ever
Welcome back, fellow Hybrids!
In today’s newsletter, I will unpack the important lessons you can bring from team projects in your day job into your real estate investing journey.
(Today’s issue takes ~3 minutes to read)
Have you ever been part of a team project that went spectacularly well?
Or maybe you’ve been part of one that completely missed the mark?
Whichever the case, there's no doubt that these experiences, whether victorious or disastrous, can provide invaluable insights applicable to real estate investing.
Today, let’s delve into the world of team dynamics and see how we can apply these lessons to our real estate investing journey.
#1: The Power of Defined Roles in Real Estate Investment
In every successful team project, roles and responsibilities must be clearly defined.
Who's the project manager?
Who's in charge of quality control?
Who's responsible for ensuring deadlines are met?
In real estate investing, the answer is YOU until & unless you build out a team.
With that said, your real estate investing team should have clear roles.
You need to know who's doing what - from the realtor who sources the deals to the property manager who handles the day-to-day running of the property.
Example: Sarah, a first-time investor, decided to build a real estate team for her rental property business.
She hired:
A real estate agent to find properties
An attorney to handle legal matters
An accountant for financials
And a property manager for day-to-day operations.
Clear roles reduce the potential for overlap or conflict, enhancing efficiency and effectiveness.
Related Reading: The Key Players You Need To Build Your Real Estate Investing Dream Team
#2: Keys to Successful Communication in Real Estate
How many times have you been part of a team where communication was poor? The results weren't pretty, were they?
Good communication is critical to:
Prevent misunderstandings
Ensure everyone is on the same page
Promote cooperation and synergy
This principle applies directly to real estate investing.
It’s crucial to maintain open and clear lines of communication with everyone on your team: your agent, property manager, lender, and even tenants.
One best practice you can adopt to improve communication with your team is a monthly check-in.
Example: We own & operate 4 rental properties in Las Vegas. We primarily self-manage these properties, but we also have a go-to person for on-the-ground support.
(Related Reading: How I Saved $25k In Property Management Fees over 3 Years )
We check in with him once a month to go over the following:
Update each other on open tasks
Re-align on any expected timelines for completing tasks
Share any relevant intel from tenant interactions or recent events
Raise any concerns or upcoming deadlines to be aware of (leases ending, deferred maintenance concerns, late rents, etc)
This open communication helps preempt problems, clarifies expectations, and keeps everyone on the same page.
#3: Conflict Management & Resolution
Conflict is inevitable in team projects, as people with different ideas and perspectives come together.
But conflict doesn't have to be detrimental. If managed well, it can lead to improved ideas and strengthened relationships.
Real estate investing will sometimes pit you against difficult situations.
For instance, you may disagree with your property manager about maintenance costs or with a tenant about late rent.
How you handle these conflicts can significantly impact your investment's success.
Emphasize the following:
Empathy
Active listening
Finding mutually beneficial solutions.
Example: When Tom's property manager and tenant had a disagreement over a delayed maintenance issue, tensions ran high. Instead of taking sides, Tom arranged a meeting with both parties.
He listened to both sides, facilitated a dialogue, and helped them reach a compromise.
His effective conflict management turned a potentially damaging situation into an opportunity for improved relationships and procedures.
#4: Celebrate Wins, Both Big & Small
In team projects, celebrating wins, however small, can boost morale and motivate the team to strive for more success.
Don’t forget to celebrate your wins in real estate investing, too!
Got your first rental property? Celebrate!
Successfully refinanced a mortgage? Celebrate!
Manage to evict a problematic tenant? Definitely celebrate!
These milestones, however big or small, contribute to your overall investing journey.
Example: Lisa had a difficult time securing her third investment property, but with persistence, she finally closed the deal. To commemorate this accomplishment, she threw a small party with her investment team.
This celebration not only boosted everyone's morale but also strengthened their sense of teamwork. The experience motivated them to work harder on their future ventures.
Key takeaways
Clear roles and responsibilities are crucial: Ensure each team member knows their role and how they contribute to your real estate investing goals.
Communication is key: Open, regular, and clear communication with all stakeholders will help prevent misunderstandings and promote cooperation.
Conflict is not always bad: When managed correctly, conflicts can lead to improved outcomes and strengthened relationships.
Celebrate every win: No matter how big or small, every win is a step forward in your real estate investing journey. Celebrate it!
Final thoughts
Real estate investing is not a solitary pursuit.
It's a team project, and like any other, it requires effective communication, clear roles, conflict management, and celebration of wins.
Invest in learning about team dynamics, delegation, and project management, and you’ll set yourself up for scalable, long-term success.
What has been your biggest teamwork challenge in real estate investing, and how did you overcome it?
Reply to this email or drop your answer in the comments and let me know.
Until next week.
-Aaron