STEP #1: BUILDING YOUR “A” REAL ESTATE TEAM!

BUILDING YOUR “A” REAL ESTATE TEAM!

AND NOW I-N-T-R-0-D-U-C-I-N-G YOUR 2021 Champion Team (You must read in a deep baritone announcer’s voice)

  1. Property Manager
  2. Successful Investment Real Estate Owners
  3. Real Estate Agents 
  4. Home Inspectors
  5. Home Appraisers
  6. Title Insurance Officers
  7. Real Estate Attorneys
  8. CPA
  9. Mortgage Lenders/Brokers
  10. Insurance Agents
  11. Contractors
  12. Reliable information such as http://www.Wealthbuildingpowers.com

Recruiting an “A” team is key to achieving financial success investing in real estate. This team is spending your HARD-EARNED SAVINGS and you want not a good but a great return on investment dollars!  

Building a high performing team takes time, as some selections will have to be cut and replaced. 

HIRE S-L-O-W and JETTISON FAST!    

As you start adding team members, tap their professional networks to keep building your team.  Do NOT search for the cheapest professionals but the BEST! 

Note: Utilize below General Recommendations to help find any of the below team members.

  • Ask current team members for referrals
  • Social Media Groups: Facebook, Instagram, LinkedIn, Pin-interest, etc. 
  • Real Estate Websites
    • https://www.biggerpockets.com – Learn how to invest in real estate with educational resources, evaluate properties using expert tools, and connect with other investors.

1.  PROPERTY MANAGERS

The main downside of buying a rental is managing the properties. Someone has to deal with the ugly three Ts: Tenants, Toilets, and Trash, seven days a week, 24 hours/day.

Previous Property Management Blog links at bottom of this blog.

STEP #5: IS A PROPERTY MANAGER REALLY WORTH TEN PERCENT OF YOUR RENTAL INCOME?

STEP 6: YOU WANT MAX PROFIT, THEN YOU NEED A GREAT PROPERTY MANAGER

2.  SUCCESSFUL INVESTMENT REAL ESTATE OWNERS

MY MENTOR AND FELLOW INVESTOR -Nathaniel Boney

Any successful real estate investor has a solid team.  He or she may also have a backup team and be willing to share her contacts.  Find and build a relationship with fellow investors. They may share lessons learned that will save or earn you money.

3. REAL ESTATE AGENT

Hire a great NOT good agent!

Make sure you choose a trustable agent that is knowledgeable about your specific real estate market and neighborhoods. 

Previous Blogs on Real Estate Agents:

 

STEP #3: TO FIND A GREAT INVESTMENT REAL ESTATE AGENT YOU SIMPLY NEED… (hyperlinked below)

STEP #3: TO FIND A GREAT INVESTMENT REAL ESTATE AGENT YOU SIMPLY NEED…

4. HOME INSPECTION

Home Inspections Are a MUST

A critical step is hiring a competent professional, to inspect any property once you and the buyer have agreed on the price.  The inspection report will identify any concerns, help you decide to buy or walk and help and provide facts for negotiating a better price. It is more effective to ask for $7,000 off a price because your report shows the HVAC is leaking, unsafe and non-repairable. This investment (the buyer pays the cost) reduces the likelihood of unexpected major expenses such as roofing, HVAC, Foundation, Electrical, etc.  Depending on the age of the property you may also want to hire separate inspectors to inspect for radon, mold, lead paint, or asbestos.

Ensure you have included an inspection contingency in your offer, 

5. HOME APPRAISER

If financing the property, the lender will require a professional home appraisal. Typically, the appraisal occurs once the seller has accepted your offer. Hiring an experienced and credible appraiser is important to know the accurate value of the home and to ensure you are not unknowingly paying above fair market value. 

Based on the projected returns you may decide to pay above asking or market value. 

6. TITLE OFFICER 

The title officer will thoroughly examine public records to ensure the legality of the title. They will ensure and guarantee through a title insurance policy there are zero outstanding mortgage payments, liens, etc. before ownership is transferred from the seller to you. 

Your real estate agent, property manager, attorney or lender may have a title officer and company they recommend.  Do your due diligence and review the company using Better Business Bureau, YELP and social media ratings and comments.  

7. REAL ESTATE ATTORNEY

Some states require that a real estate lawyer is present at closing, while others do not. Buying a rental property is a major cost and I ALWAYS utilize a real estate attorney to protect my best interest.  

8. CPA and FINANCIAL ADVISOR 

A good CPA or Financial Advisor may help you determine optimal financing options and strategies to pay the least amount of taxes. 

9. MORTGAGE LENDERS/BROKERS

Find your mortgage lender before you submit an offer on a property. The lender will let you know how much you can afford and the loan amount you qualify for.  This written prequalification demonstrates to sellers you have the necessary funds.  

I suggest meeting with multiple mortgage lenders before deciding who you’ll want on your team. 

10. INSURANCE AGENT/BROKER

You need an insurance agent who can get you quotes quickly, makes changes on the fly and deal with lender requests rapidly. A bad insurance agent can jeopardize your deals.

You will want to make sure you are well covered, and your investment is protected. 

The more properties you own the greater likelihood you will eventually file a claim. 

11. CONTRACTORS

A good contractor will save you time, money and give you piece of mind. Like many other professions, a good contractor is hard to find. This is where your team’s contacts and network come in handy! 

12. Wealthbuildingpowers.com

I modestly offer my blog as a reference resource on real estate investments.  You will find several real estate blogs posted.

BUILDING YOUR “A” REAL ESTATE TEAM!
BUILDING YOUR “A” REAL ESTATE TEAM!

CONCLUSION – HIRE S-L-O-W and JETTISON FAST!    

In my opinion the Property Manager and the Real Estate Agent tie as most important team member.  Ideally, they are one and the same.  You want a real estate agent that understands the rental business.  Many Property Managers are also licensed real Estate Brokers. 

I remember the absolute best team I was a part of.  While I was the manager, I felt like a player coach.  My lesson learned from that team and lousy teams, take the needed time to hire the right people.  Being human I made hiring mistakes in my professional role and my real estate team, as will you as you build your team.  

Hire exceedingly slow and hit the ejection button as soon as you realize you hired the wrong team member. 

Next blog in this real estate series:  A WIN-WIN STRTAEGY FOR NEGIOTIATING THE PURCHASE CONTRACT 

Invest Like A Pro Zoom Meeting

I will be one of two speakers Saturday, November 14, 2020 – 11 am – 12:30 PM, CST. See below link to register if you wish to attend.

Increase your confidence as you learn about the stock market, how to read stock charts, how to open an investment account and how you can join the Fantasy Investing Challenge to win cash prizes.

Free & Open to Public Saturday, November 14, 2020 – 11 am – 12:30 pm

RSVP: Invest Like a Pro

PREVIOUS REAL ESTATE INVESTMENT BLOGS

STEP #2: IT’S ALL ABOUT THE LOCATION SILLY

https://wealthbuildingpowers.com/2020/09/08/its-all-about-the-location-silly/

 

STEP #3: BUYING THE BEST MONEY-MAKING INVESTMENT RENTAL PROPERTIES

https://wealthbuildingpowers.com/2020/09/21/buying-the-best-money-making-investment-rental-properties/

 

STEP #4: TO FIND A GREAT INVESTMENT REAL ESTATE AGENT YOU SIMPLY NEED…

https://wealthbuildingpowers.com/2020/09/28/to-find-a-great-investment-real-estate-agent-you-simply-need/

 

STEP #5: IS A PROPERTY MANAGER REALLY WORTH TEN PERCENT OF YOUR RENTAL INCOME?

STEP 6: YOU WANT MAX PROFIT, THEN YOU NEED A GREAT PROPERTY MANAGER

https://wealthbuildingpowers.com/2020/10/19/you-want-max-profit-then-you-need-a-great-property-manager/

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ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached and mentored by strong women and men in both my family and professional life.  It is my time to serve and give back.


DISCLAIMER

I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.

However, I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog, as recommendations for your personal situation.  For individual finance advice please seek your own licensed CPA or fiduciary financialadvisors.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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