Real Estate Investing is All About Teamwork
Teamwork should be the cornerstone of every real estate investors business plan. Yes -there are many of us that are one or two (wo)man shows whom shoulder a majority of the responsibility’s; however, there are many critical components in the anatomy of a real estate transaction that require different skill levels and expertise.
I started investing in real estate with the core beliefs that I’ve got to get (at least the key) critical things done myself. After-all, if you want it done right you gotta do it yourself? Right!?! WRONG!
Ask me how I know? First off its practically impossible for any individual to acquire all the reasonable skill sets needed to take real estate investing through a full cycle (either in a ‘rehab-to-retail’ resale or a long-term rental investment). One simply cannot acquire the skills of an attorney, cpa, carpenter, electrician, general carpenter, interior designer, plumber, realtor, lender, and the list goes on….. ‘Don’t be a ‘Jack of All Trades & a Master of None’!
I’ve had to learn the hard way as I’m sure most have too. What I have found is that building professional relationships with professionals with whom you can count on (and they on you) to accomplish their responsibilities in a competent and timely manner is absolutely critical in building a continual growing investment and business operation. Five years ago you would of still found me (even after a decade’s plus of experience) camped out at a major ‘rehab-to-retail’ resale project making sure every critical component was handled. Today, I find myself being completely hands off with an assembled team of professionals where at times I see that project at pre-rehab stage and not again until the real estate is ready to list for sale.
CAVEAT: That last statement of “Today, I find myself being completely hands off with an assembled team of professionals where at times I see that project at pre-rehab stage and not again until the real estate is ready to list for sale.” comes after almost 20 years of real estate investing from multiple angles of the business. I would not recommend this for anyone who has not been actively investing for a good decade. Why? Because true expertise comes with time and experience from doing multiple (and I mean many -say 100+ deals) real estate transaction. Believe me -I do not say this from ego but from humbled experience.
This is one key critical component that some inexperienced real estate investors overlook and under value: Real Experience. However, it is something we all can work hard at and aspire too. Give it time and it will happen. I will tell you that I have gone through many trials and tribulations to get to the spot I am at today -and mistakes are still made.
Again, through relationships (and proper checks and balances) we can build a team around us that can excel our cycle of investing and business growth.
Do you want to do 1, 5, 10 or 20 deals this year?
What will it take to get there?
Can you do it yourself?
So yes -a team of professionals is what is needed and real estate transactions with margins to make it work. From the flip side, we need to be professional too. If our team cannot count on us to be organized, timely, consistent, and pay for the value they provide -we won’t have a team (of professionals). Step back from your daily real estate investing and analyze the big picture. What’s missing and/or stretched? Go build that team to strengthen the strategy!
Former Articles Regarding Parts of the REAL-Estate Team:
Marketing Real Estate Investments: A Realtor is a Key Member of the Team
Legal Advice: A Real Estate Investors Team of Advisors
Rehabbing Real Estate Investments: Beware the Contractor