Building my support team - what questions to ask?

Question

Hello All! Totally new to RE investing. I've been spending the last month+ reading many books, listening to many podcasts, and getting psyched about the possibilities in RE! We're pulling together questions to interview our potential team and I'd love some feedback on things that you have asked your team members in the past, things to look out for, red flags of who NOT to hire... I've pulled many questions from books but just want to round it out with advice/situations you may have experienced. Here's who we're looking to hire for our team - let me know your advice on top things to ask these candidates:

1. CPA/tax advisor

2. Attorney

3. Real estate agent

4. Property managers

5. Contractors

Thanks in advance!

1. CPA/tax advisor

2. Attorney

3. Real estate agent

4. Property managers

5. Contractors

Thanks in advance!

Jonathan Greene · Answer

One thing to keep in mind. Many of these people won't be interested in a pre-meeting or setup because they all hear all the time from new investors (who have never done a deal) how they are going to do this and that and then nothing happens. It won't be anything against you, but you really need to be in motion, viewing, and start with the agent in that scenario. Once you find an investor-friendly agent in your market who is willing to show you a ton of properties to find the right first one, the rest will start to come together while you are looking.

Rebecca Taylor · Answer

Great information!  Thank you all so much for your insight and for taking the time to respond.  It is very helpful.  And makes sense... and is probably in line with how I was thinking about my process.Right now, we want to focus on hiring an attorney and CPA to understand entity formation and asset protection.  So insight/thoughts/red flags on CPAs and attorneys are most appreciated.

While we're doing this, we are looking at properties/neighborhoods and beginning prop. analysis as well.  We are trying to be proactive about what we need to look for in realtors and contractors before these moments arrive.  I totally agree that we will not contact contractors before we have a project need - definitely don't want to waste anyone's time.   Just want to think about characteristics/qualities/etc. that make a good contractor/realtor/etc.  And on the flip side, what red flags and horror stories have people experienced that I should keep in the back of my mind?

THANKS AGAIN!!!

Rebecca Taylor · Answer

@Daniel Hyman Fantastic thought on asking an open-ended question!  Absolutely love it - thank you!!!

Daniel Hyman · Answer

@Rebecca Taylor

For your CPA search, I think an open ended question is best. "Given my situation, how can your firm add value?" That question will be a springboard to hear all the pertinent information.

Scott Mac · Answer

Hi Rebecca,

With contractors --if you don't know how to spec a job there will be miscommunication and you will feel burned. ie, why was the wall left open after the electrician put in a new wire--why did the plumber leave all of the old fixtures in the hallway and then just bolt out the door, never to return and never to return your phone calls?

Why is a job taking longer, what's the likely hood that this type of job will cost over-run, and time over-run compared to another type of job. ie, running a new circuit for a microwave, vs adding an outlet.

What I'm getting at, is if the Project Manager (you) doesn't understand the work that needs to be done in detail....your checkbook might be on fire with checks flowing out if it.

So a basic question might be "Hi I'm Rebbeca, I'm really new to this, and don't fully understand what you do and do not do on a job, or what I have to ask extra about--can you help me with that. (If you think you understand it all, describe how and why to install an electrical sub panel (using proper terminology) and the trades you will (most likely) need to make that happen.) Don't feel bad if you can't--most people reading this (outside of electricians) will NOT be able to do so. But one slip up and ker-Zap it turns into a bug zapper, and the bug could be you.

But our friend the Electrician is not likely to reseal the plaster and make the repair invisible nor is he likely to repaint the the wall, and he may not even clean up the debris from the plaster being opened up. Or he may do all of these and charge extra for them--You need to know what you are paying for. $2,300 for electric and there are still big holes in the wall you didn't expect....Whose fault would that be.

Good Luck!

Bruce Woodruff · Answer

When you say 'hire a Contractor', what do you mean exactly? You're not putting a GC on payroll , right? You just want someone to give you budget numbers? They will generally not be interested unless you have a property that you already own (not in escrow).....they get these calls every day, and it always turns into absolutely zero $$ for them. They will be your most important up-front contact so figure out how to entice them into giving you a tight budget number.

Unfortunately they won't even be interested in giving you Lic #s, Insurance and Bond info, references, Etc until they are fairly certain they might get a job out of it. You wouldn't either right?

Cameron Braig · Answer

Congrats on getting started and hope things have progressed well.

Building my support team - what questions to ask?

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