The Key Players You Need To Build Your Real Estate Investing Dream Team
The Key Players You Need To Build Your Real Estate Investing Dream Team
Plus FREE Interview Templates For Each Role
Happy Thursday, fellow Hybrids!
In today’s newsletter, I will break down the key members of your real estate investing dream team, why you need them, and how to interview them.
As a bonus, you can download my newly released FREE Ultimate Interview Template Pack To Build Your Real Estate Investing Team.
(Today’s issue takes ~4 minutes to read)
As a real estate investor, it's easy to get caught up in the excitement of finding and closing deals.
But it's essential to remember that building a team is just as important as finding the right properties.
From understanding local market conditions to managing your property, there are many decisions to make as a real estate investor, and each one can significantly impact your ROI.
That's why you need the right team on the ground.
Why You Need A Team
You're picking up new advantages with every team member you add to your team:
Access to Expertise: Building a team gives you access to expertise beyond your own. By having professionals in place, you can leverage their knowledge and experience to help you make more informed decisions.
Time Efficiency: Trying to do everything yourself is a recipe for burnout. With a team in place, you can delegate tasks and free up your time to focus on higher-level tasks, such as deal analysis and networking.
Mitigating Risk: Having professionals on your team can help mitigate risk by identifying potential issues early on and providing guidance on how to address them.
Each of these benefits provides additional leverage for you, both with time & money.
Who Should Be On Your Team
I like to segment my team into two groups. Your “Core 4” and “Other Key Players.”
The “Core 4”
The “Core 4” are the go-to team members you’ll regularly interact with.
1. Real Estate Agent:
A good agent can help you find deals and negotiate contracts. They can also provide valuable insights into market trends and conditions.
Read More: 5 Reasons to Hire an Investor Friendly Agent
Where to find an investor-friendly agent:
BiggerPockets Agent Finder - (Disclaimer: Do NOT skip your due diligence just because an agent is in this database. Screen thoroughly & carefully)
2. Property Manager:
Arguably the most important team member (especially if you are long-distance), a property manager can handle tenant screening, rent collection, property maintenance, and so much more.
Read More: 10 Benefits of Hiring a Professional Rental Property Manager
Where to Find a PM:
Ask your investor-friendly agent for multiple referrals. (Hint: If they don’t have any suggestions, they’re not an investor-friendly agent)
National Association of Residential Property Managers (NARPM)
3. Accountant/CPA:
The tax advantages of real estate investing are unrivaled.
But without professional help, you will miss out on key tax breaks and run a high risk of falling out of compliance with IRS guidelines. You need a CPA…
Be careful, though. The average rate for a CPA these days is ~$300/hour.
NOTE: You will want to highly prioritize someone with knowledge of the local laws (at least at the state level) that your rentals are located in. Tax laws vary significantly by state.
Read More: Why You Definitely Need a Real Estate Accountant
Where to Find a CPA:
Referrals
Online search (look at ratings, customer experiences, and relevance to real estate)
4. Lender:
Unless you’re buying all cash, having access to a preferred lender who knows how to navigate your situation is crucial.
Make sure you shop rates from multiple lenders!
Read More: How to Vet & Find Investor-Friendly Lenders
Where to Find a Lender:
Referral from agent (oftentimes they will have a preferred lender)
Local bank or credit union
You’ll want to invest time & energy into vetting these team members. These are long-term relationships.
Other Key Players:
This category includes people you (hopefully) won’t need to consult often, but you want to have identified in case you need them.
1. Real Estate Attorney:
An attorney can review contracts and legal documents, advise you on compliance issues, and represent you in legal disputes.
Do NOT rely on advice from an out-of-state attorney when it comes to investing in new markets. Legal and regulatory concerns vary dramatically depending on which municipality you’re in. Go local!
An experienced real estate attorney can run you ~$400/hour, so make sure you prepare specific questions before engaging with one. They will bill you by the minute.
Read More: What Is A Real Estate Attorney - For Investors
Where to Find a Real Estate Attorney:
Referrals (many agents and/or PMs will have a preferred contact)
Online search (look at ratings, customer experiences, and relevance to real estate)
2. Insurance Agent:
Rental property insurance is easy to find; however, a specialized insurance agent can help you ensure you have the right coverage for your unique situation. Find an agent who has experience working directly with investors!
Read More: Why Real Estate Investors Need a Good Insurance Agent
Where to Find an Insurance Agent:
Your lender’s in-house insurance broker
3. Contractor:
A contractor can help you assess the condition of a property and estimate renovation costs. They can also manage the construction process if you decide to rehab a property.
Read More: Importance of Hiring Contractors in Real Estate Investing
Where to Find a Contractor:
Referrals (highly preferred. Testimonials are key when it comes to ensuring quality)
Angie’s List/NextDoor/Yelp (all have built in ratings & recommendation engines)
How to Interview Your (Prospective) Team Members
Knowing who should be on your team is half the battle.
But building a rock-solid team doesn't happen by accident. You have to ask the right questions.
Remember, you’re picking someone to assist you with acquiring, managing, repairing, or otherwise protecting a high-value asset!
Skipping steps or cutting corners during the interview process can cost you tens of thousands of dollars!
I’ve learned a few tough lessons from hiring the wrong team members (see related reading: 3 Hard Lessons I Learned From Firing My Property Manager).
To spare you from going through similar turmoil, I put together a package of templates with detailed interview questions for each team member.
You can download the templates for FREE in either Notion or Google Drive, whichever you prefer.
Direct Links:
Hybrid RE Pro - The Ultimate Real Estate Investing Starter Pack - Notion
Hybrid RE Pro - The Ultimate Real Estate Investing Starter Pack - Google Drive
You’ll sleep better at night knowing you did your due diligence and put your assets in good hands.
See you next week.
-Aaron
PS: If you find these templates helpful, I’d deeply appreciate it if you’re willing to leave me a review on Gumroad.