While many of you are trying to be a one-man or one-woman show -- The owner, manager, rehabber, rent collector, bookkeeper, plumber, electrician, and everything else for your business -- a much easier and more profitable way is to build a team.
You don't need to know everything there is to know about everything. If you are not an attorney, find a good real estate attorney. If you really don't like or understand accounting, find a good accountant who specializes in real estate.
It is truly worth the time and effort it takes to have a team of experts to handle the variety of tasks associated with running your business.
How is this more profitable? Well for the hours you spend trying to learn what they already know, you could be out making real estate deals and making money in your area of expertise. I can call my accountant, pay a reasonable fee, and quickly get the right answer. It is absolutely worth it.
What other people might you want on your team? Well how about if I go back to the beginning of my business and see what team members I added as the company evolved.
- Gurus In the beginning I purchased a course from a real estate guru and started learning about the business. This information was the foundation of my business and I have spent hundreds of hours learning from many of the great real estate gurus. I learned early on that the key to this business was getting a solid education.
- Other real estate investors Once I decided this was something I wanted to try but was still hesitant to just jump out there on my own, I joined the local real estate investment association. Here I found a tremendous amount of information and support from people in my city and a bunch of great friends.
- Contractors/handymen/sub-contractors As I started getting properties it seemed like each had their unique problems. Some had trees, shrubs, and junk that needed to be removed while others had nice yards but bad roofs and so forth. With each new house I added the names of different types of workers. I'd evaluate the work and price of each and choose to keep their numbers handy and add them to my team or keep looking for someone better.
After awhile I was able to walk through a property and see what needed to be repaired or replaced and I would immediately have someone in mind that could do the work.
A couple of early lessons I learned that I want to share with you can help you avoid some pain in this area.
First lesson, what was the skill level should I hire?
At first, 'to save me money', I hired the lowest level of handyman. These are the workers that when you ask them what type of rehab work they can do; plumbing, electrical, drywall, carpentry, etc), they will answer "I can do it all". These are the guys who are not licensed. You can spot them with their old pickup truck with a DBA company name, if any name at all.
Now I guess I'm a slow learner. Took me a couple of years of having material stolen, money stolen, jobs started and never finished, poor workmanship, chasing contractors to get the job finished, being overcharged, etc, etc, etc..
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