Once your real estate investment business is launched and you start generating a passive income from the first few properties, chances are you’ll want to expand and generate even more. A vital part of the process of scaling your business is to build and lead a real estate investing team. This team will help you perform all the tasks needed to keep your company successful on a daily basis, freeing you up to spend your time on more important tasks like scouting new properties and making deals with new tenants or buyers. With the right Real estate investment team structure, you can set yourself up for continued success.
Why Do You Need a Real Estate Investing Team?
Real estate investment building and management requires a lot of attention to detail and the amount of work involved can simply be too much for one person. As you grow your property portfolio, there is more work associated with the management of the properties, whether you are hoping to rent or sell them. In the age of social media, having issues with tenants or buyers that aren’t immediately resolved can cause severe damage to your reputation. Having a solid process in place and people to handle each required role prevents issues from happening, keeps your tenants or buyers happy, and keeps you from having to stop and handle these problems as they occur.
Who Should Be on Your Real Estate Investing Team?
The people you find necessary on your team can vary based on your process, how hands-on you want to be, and whether you have partners in the business. There is no hard and fast rule for how many people you need to work with, and it can take time to find the right balance for you, but there are some roles you are likely to want to include. Some of the people who should be included on your investment team include:
- Accountant: Taxes can become complicated when you buy and sell property, so having a skilled accountant on the team is a must.
- Attorney: In some states, having a realtor is enough to assist you in making sure all of your dealings are done properly and with legally enforceable contracts in place. In other states, having an attorney work with you is the best way to proceed.
- General Contractor: Properties that need work after you purchase them should be handled by a professional, licensed contractor to make sure they are up to code.
- Real Estate Agent: This team member can help with listing renovated properties for sale or rent, or scouting for new properties to invest in.
- Property Manager: If you’ll be renting the properties you own to tenants, the property manager can handle the day-to-day issues that may come up for them. This keeps you from having to come out every time a toilet is broken or a pipe leaks. As you scale your operation to include more properties that might be outside your town of residence, this can be very helpful and save you a lot of time.
- Marketing Manager: This person can help advertise properties once they are ready for sale or rent, but they can also help contribute to your bottom line by boosting your reputation and increasing name recognition of your brand.
Where Do You Find People for Your Team for Real estate investment building and management?
Initially, it can be challenging to find team members who deliver work that is up to your standards. Remember it can take time to find the right fit and work out the communication between team members. Real estate investment building and management can be a process you have to experiment with over an extended period of time. As you begin looking, here are some places to try:
- Referrals from people you trust who have worked with these professionals in the past can help you determine who to work with.
- Linked In and other professional association websites allow you to review the training and qualifications of each potential team member before you reach out to propose a partnership.
If you want to learn more about real estate investment building and management, consider taking a class that can teach you more about the basics and how to go beyond them to generate more passive income. In the CDS Real Estate Investing course on how to create 100k in passive income through investing in real estate, you can learn how to be the leader of a real estate investment team that increases profit and grows over time.