Building a Real Estate Team

[Robert Williams]

I've been listening to as many of the the bigger pockets podcasts that I can ( about 70 in my first week) and for as far as I have gotten, no one has gone in depth about their team. Who all do I need to be successful at REI? Realtors, Property Managers, Bankers, Contractors… is there a defined list of all I could possibly need? Does it vary for BRRRR, Buy and Hold, Fix N Flip…

[Aaron W.]

@Robert Williams That's awesome you've listened to so many BP episodes so far.

There are some BP articles written on this topic. You've named most of them.  Sometimes it really depends on what you are investing in and where you are investing.  A couple good BP resources on who should be on your team are below:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

Best of luck!

[Robert Williams]

@AJ H.thank you for the reply. I will check it out!

[Robert Williams]

@AJ H. Also, I put my AirPods in while I’m working otherwise I’d only be on #7. I literally listen as long as I am awake. Learned more in the past week than I did all 16 years of school!

[David M.]

@Robert Williams

That was a pretty decent list in the links above.  However, it does depend on what sort of investing you are doing and how your real estate market typically operates.  Some examples,

*In northern NJ, we typically use attorneys.  I let him/her take care of the Title company and surveyor.  However, in southern NJ, they typically don't use attorneys so buyers need to find their Title company.

*If you use and/or have a great/excellent real estate agent, you can lean on their ability and resources.  Finding handymen, contractors/tradesman should be no problem for your agent.  Just as opening the doors..

*I think the lists had admin assistant, bookkeeper, marketing coordinator, property managers, etc.  Well, if you just have one rental you probably don't need all of that.  Maybe if you had some sort of substantial company company...  Yeah, some people "swear by" property managers (but I don't have one).

If you are doing brrr and fix n' flips, you'll need more extensive amount/type of tradesman to handle all the work.  If you are going after more turnkey rentals types, a handyman/contractor might be all you really need --- once or twice a year.

Lets face it, the team has to fit the purpose that you are looking to do.  Good luck.

[Loic Yarde]

Honest Rob,

Everything varies from not even states but Counties. Title companies are your friends some only focus on wholesaling. Ask other wholesalers in your area who they used for title. Property managers have great connects to build your network but mainly they are there if you are buying to hold. Contractors are your boots on the ground most will go our for free to help you calculate your ARV by estimating the Rehab budget. I'm in Joliet to but mainly near Chicago, Aurora areas connect whenever.

[Jonathan Klemm]

@Robert Williams - Not sure which episodes but I know @David Greene goes in-depth on building your team and what he calls your core 4.  Here is a link to a blog article he wrote:  https://www.biggerpockets.com/...

The cool thing about building your team is rockstars know rockstar so find one and you can find them all.  I can definitely connect you with some rockstars in Chicago, just let me know what you are looking for to get started.

Caveat - like anything you'll need to properly vet them to make sure they are a good fit for you and your business.

[Nabin Mandal]

@David M. Agreed that the team has to fit the purpose. Why does northern NJ require attorney where southern does not? Curious about that. Thanks

[Nabin Mandal]

@Jonathan Klemm Great article and I love that saying that rockstars hang with rockstars. I’m in NYC. How would you vet a contractor correctly?

[Darius Ogloza]

@Robert Williams The first step is the do a fair assessment of what you personally will be bringing to the table.  If you have a license or intend to get one, you probably will not be relying on a Realtor for too long.  If you do carpentry and have other fix-it skills, you may not need that solid a contractor as you absorb other skills you may not have yet.  If you have access to funds already, no need to knock on too many banker's doors.  Etc.

Second step is you fill in the blanks.  If you can find and analyze properties but need money - focus on filling in that slot.  Friends, family, private sources, banks.  Shake some hands.  Buy some lunches.  If you have vision but aren't handy, you need a contractor type. Etc.  Same drill really.     

[David M.]

@Nabin Mandal

Its not that northern NJ requires an attorney, its just customary to use one.  I hear that in southern NJ they tend not to use an attorney.

[Steven Foster Wilson]

Originally posted by @Robert Williams:

I've been listening to as many of the the bigger pockets podcasts that I can ( about 70 in my first week) and for as far as I have gotten, no one has gone in depth about their team. Who all do I need to be successful at REI? Realtors, Property Managers, Bankers, Contractors… is there a defined list of all I could possibly need? Does it vary for BRRRR, Buy and Hold, Fix N Flip…

Here in Columbus I focus on BRRRR investing, to do that I've needed the following

1. Great Realtor

2. Great Contractor (im still searching for the ideal one)

3. Reliable Lender

4. Great PM

The tough thing is that these are contumely changing, one lender might work for one deal, but you might have to reach out to another for the next deal. The key is to have as much in place as possible to get your systems down.

[Nate Sanow]

@Robert Williams

I love the hunger, with that you will go far

[Crystal Smith]

Originally posted by @Robert Williams:

I've been listening to as many of the the bigger pockets podcasts that I can ( about 70 in my first week) and for as far as I have gotten, no one has gone in depth about their team. Who all do I need to be successful at REI? Realtors, Property Managers, Bankers, Contractors… is there a defined list of all I could possibly need? Does it vary for BRRRR, Buy and Hold, Fix N Flip…

• Relationships with Bankers
• Relationships with Mortgage Brokers
• Relationships with Private Money Lenders
• Friends and Family who could become lenders
• Contractors/Handymen
• Title Company
• Attorney
• Property Managers
• Realtor(s)
• Other Investors 

[Jonathan Klemm]

@Nabin Mandal - Vetting anybody let alone contractors is very tough to do.  Ultimately, we really never know who people are until we've dealt with them when everything isn't going perfectly.

I try to give everyone the benefit of the doubt until they don't deserve my trust.

That being said there are still things we try to do to help weed out bad contractors.  Something things we try to implement when vetting contractors & subcontractors:

1.  Referral (from other subs and other clients)

2.  Visit an ongoing 

2. Google / Yelp/ Angie's reviews

3. Actually just talking to people and getting to know them, their story, and why they do what they do.

4. Pictures / Videos from past jobs

[Nabin Mandal]

Thanks for your response! I have a few follow questions to some of your much appreciated points.

1) Who would you ask for referrals and how would you ask to ensure that you would be taken care of in the same manner that the person referring was?

(2) What would be the core idea to impress, takeaway or safeguard when visiting a potential contractor at an ongoing project?

(3) In looking at online reviews, what are the primary criteria you’re looking for in keywords that gives you an indication of a contractor with elite workmanship and customer service?

Within the field of I/O psychology recruitment and selection is of particular interest when choosing sales forces at Fortune 1000 companies, Navy Seals and professional athletes in MLB, NBA, NHL and NFL.

HBR published an interview a few years back concerning demonstrative loyalty of an instance at an international hotel in Mumbai to which employees chose to protect patrons rather than run for their own lives. HBR asked the human resource manager how she got such loyal employees to which she said that she primarily sought from rural small town villages.

I think this speaks volumes about character development and loyalty in such settings to create morally sound folk and great people overall but I’d like to know how to better apply such recruitment and selection criteria when it comes down to reaching contractors to begin with a positive narrative.

[Jonathan Klemm]

@Nabin Mandal - I still think it's more of a trial and error process overall....

1. I'd ask other investors, property managers, realtors, lenders, etc., and then once you've found a good trade ask them if they know any others that provide the same quality they do.

2.  Look at the quality of their work, job site cleanliness, are they proud to show you and explain the job.  Maybe also ask if you can speak with their client.

3.  I typically look to the bad reviews first.  They seem to tell a more accurate story of who someone is (most of the time).  Tons of people put a bunch of fake reviews up and I don't put too much faith in them.  Did they respond to the bad review?  Also, sometimes there will be pictures where you can see the quality of their work.