How To Build Your Real Estate Investment Team
Real estate investment doesn’t have to be a single-player sport.
And in many cases – it shouldn’t be.
There are many benefits of tackling the real estate market as a team.
You gain valuable experience from others and can amass a widely versatile front line full of different skill sets, experiences, and backgrounds – all fundamentally vital when taking on an unpredictable industry.
But you may be wondering – when starting out in real estate investing for the first time, what types of skill sets do you need to look out for? What types of backgrounds should be top of your wish list? And what types of roles and responsibilities need to be prioritized as you build up a cohort of like-minded real estate professionals?
Well, we’re here to break it down.
In this quick guide, we’ll cover:
Important Roles For Your Real Estate Team
Nearly as necessary as your investment strategy are the people you choose to collaborate with behind those dollar signs.
Because real estate investment is more than throwing money at the right property.
It’s about calculating risk and benefit as well as devising investment strategies to most productively tackle the kinds of opportunities you want to go after.
Once you determine that, start recruiting for the positions below.
Lender
There’s no better place to begin than with how you plan to secure your investment property.
Lenders will be funding partners to your investment endeavors, and choosing the right one can help to calm the waters in an unsure market.
There’s plenty of options out there for capital, and while the choice is ultimately yours, we recommend those institutions with experience in real estate investing that have a strong, successful track record to prove it.
Why? These organizations go above and beyond simply funding your next project. They can provide unique strategies, solutions, and suggestions while also being strongly informed of the industry's shifts.
Even if you feel confident with your pulse on the market, keep in mind that the bigger the brain trust, the higher your probability of success. Go with a funding partner who won’t be surprised by the complications that can arise in purchasing and managing property.
You can choose between small or large banks, conventional or private money lenders, credit unions, or nationwide organizations. Plus, don’t count out mortgage brokers either.
Additional options? Cash goes a long way in the investment market. You can also tap into retirement funds or varying partnership models with additional investors.
Real Estate Agent
The boots on the ground to your operation, real estate agents are an absolutely necessary piece of the puzzle.
Not only will they source properties prime for investment, but they’ll also have the local market knowledge and insights to outline what available options may be right for you and your unique strategy.
Looking for commercial real estate properties in commerce-heavy destinations? There’s an agent for that.
Hoping to secure multiple neighborhood residences to flip to Airbnbs? Definitely an agent for that.
Because we know there are plenty of niches within the real estate space, make sure to select an agent who not only has experience working with investors but who knows the ins and outs of the areas within your investment portfolio you’re actively looking to expand.
Our suggestion? Go hyperlocal.
Collaborate with an agent who knows the community you’re investing in well and can easily inform you of developments, changes, market trends, and what specific locations may have the most growth potential.
Contractor
No matter what type of property you choose to invest in, and regardless of what type of repairs, revisions, and renovations you see in its future, you need a contractor to maximize profits.
From ensuring it’s continually up and running for tenants inside, to remodeling it in order to elevate value, you may need one – or many – contractors in your corner during your investment journey.
We recommend having at least two on speed dial.
One that can do efficient, high-quality repairs when the need arises (think plumbing, electrical, quick fixes). This is ideal for rentals and multi-unit properties.
And the other can be depended on for vibrant renovations that can transform a space. A fix-and-flip expert that can increase value while balancing time and efficiency.
Accountant
Tax savings can be a tremendous asset to a high-performing real estate investment team.
Recruiting a CPA or real estate-savvy accountant can not only provide you with tax preparedness but can also assist in analyzing your financial state and investment goals and take ownership of overall bookkeeping.
Accountants can effectively track the heartbeat of your investment portfolio, so no matter how great with numbers you are, having a trusted professional that can do the heavy lifting is a must (especially as the number of your investment properties continue to grow).
Honorable Mentions
Overall, your team should be a reflection of your needs. While we believe the above roles are a crucial baseline, there may be other team members you see as vital to the success of your goals.
Property managers, appraisers, inspectors, real estate attorneys, and insurance agents can be value-adds. These positions can mitigate risk, ensure high ROI from tenants, and more.
Bottom line? Build a dynamic team that fits your unique goals.
What does your ideal portfolio look like? What types of properties are you wanting to invest capital into? What does management of these properties ideally look like to you?
Once you have these answers, work backward from there.
Where To Find Your Successful Team
Thinking about waiting until you find the right place to build the right team? Rookie mistake.
You don’t want to stumble upon the perfect investment opportunity just to find yourself underprepared and unsupported.
Begin your search for potential team members now.
A few ways to get started? Leverage those you know to pass along referrals and recommendations. Scour reviews to find those highest-rated, and call up those professionals connected to recent projects within your community you know and admire.
Simultaneous to your outbound search, you should also work on making yourself a credible team member as well. Build up your personal brand, which will work to attract new high-performing members, while also checking boxes for potential lenders and sellers down the line.
Looking for more ways to build your brand and recruit the very best? Check out our 101 guidance for hyperlocal marketing, specifically for investors, agents, and general contractors.
A few of our other favorite strategies to find successful additions?
- Drive Your Neighborhood. Get to know the realtors selling and buying often in your hyperlocal community. Stop at open houses and take note of recent renovations that catch your eye. Keep in mind those properties that showcase expert staging. All of this can lead you to valuable agents and contractors that could be assets to your team.
- Don’t Shy Away From Social Media. Befriend professionals within your neighborhood. Check their pages for recent deals and compare against your investment goals. Do they specialize in commercial properties? Do their recent flips align with what you’re hoping to execute? Join local groups to gain more first-hand testimonials and learn more about the most commonly used (and trusted) individuals.
- Leverage Public Records & Lead Gen Software. Tap into thousands of properties within your area (and hundreds of millions of properties nationwide) by leveraging the power of public records. While sifting through such databases of expansive information can be daunting (and incredibly time-consuming), you can opt for a tech-savvy solution with data-driven lead generation platforms, such as PropertyRadar, which bring the power of public records to you. PropertyRadar gives you the powerful capabilities to leverage hyper-specific criteria to create lead lists full of properties you want to invest in and the ability to monitor their relevant developments. Want to market to these properties? Call the owners? Uncover which contractors were responsible for those amazing flips that sold for thousands over asking? You got it. PropertyRadar provides effortless skip-tracing, property portals, geo-farming, heat maps, comparables, and more. Much more. Eager to try it out? Get a free trial now.
Got your real estate team locked in? Good.
Looking for more information on everything and anything real estate investing?
Check out How To Get Started In Real Estate Investing – your ultimate guide to understanding and beginning your first steps to investment.
Ready to unlock the power of public records data and 150 million properties? Get a free PropertyRadar trial and kick off your real estate investment journey today.
