Who is/are the most important member(s) for your team?

Question

Aloha BP!My partner and I are in the beginning phases of our partnership but we both know that in order for us to excel in this business, we will need to acquire team members that are way smarter at what they do than we will ever be. Once we find those members that would like to work us, only then will we be able to build our portfolio of investment properties and scale up to our ultimate goal of being financially free. What members does everyone here on BP recommend we focus on "recruiting" first? I've read mixed reviews on websites and books that state we should be looking for a mentor or a real estate broker or property manager but I want to get the consensus from members here. Thanks in advance. ALOHA!

Michael Bertsch · Answer

Your wife lol... If she is not supporting you and on your team, it's pretty tough.

Joe Villeneuve · Answer

I always try to surround me with people that know more than me. Then I soak up that knowledge. I figure if I'm the smartest person in the room, the room has no future.I'm an expert. Not because I know everything, but because I know who does. I know my limits, and I know my strengths. I apply my strengths, and fill in the blanks that define my limits with those people around me...that are smarter than me.

JD Martin · Answer

At the risk of sounding arrogant, the most important member of my team is me. If I don't get it right in terms of direction, selection, and the like, it's not going to matter who I have brought aboard - the project is likely to be a failure.Real estate investment is an endeavor that requires a lot of self confidence and independent action. If you don't have that, you really need to pick a more passive field of investment.

JD Martin · Answer

PS: The idea of having people smarter than you is really just something people in business say to emphasize the importance of having good people. In reality, no one can be smarter than you in terms of the overall course of the business, because if there is, you need to just be the financier and turn the operations over to them.

Jay Hinrichs · Answer

@Justin Young depends on what your goals are. IF you simply want to stack of rentals.then I think1. identify market ( if that's Honolulu)2. find a very good broker3. find a very good lender4. I assume you have the equity needed to stack up rentals.5. HOme inspections are home inspections but a reasonable inspector is great to have on your team. you don't want one that is so nit picky that you lose deals over minor items.So that's the acquiring part. For the running the railroad part1. If your local manage your own units to start so you get the feel of things.2. if you need PM this is what will make or break you.3. Do NOT fall into the trap of thinking owning rentals is financial freedom.. if you get to the point of having enough dough coming in for you and your partner to live in Honolulu ( expensive city) you will work for it... there is no illusion that running a bunch of rentals is mail box money.. at least to do it and be successful. you will change one job for another.. and many people dig being landlords.. Myself personally not so much. 4. If you want true passive start now thinking about how your going to be able to buy strong B to A class and or NNN type commercial deals. And I like MHP in the right setting. Along with Storage would I bet be a great business in Honolulu with all the apartments and condo towers there.Had dinner last night with my business partner that lives there and we are starting to poke around for some rehabbers.. big numbers though as you know.

David Zheng · Answer

I also personally think the smartest person in the room should be me. At least have a basic knowledge of everything and anything you do. For example, I don't have a license in anything but I'm starting to write my own sales contracts and read over laws. I have fixed toilets, to look at roofing, install closest, etc. I'm trying to get some knowledge of everthing so when a contractor or manager comes to me, I have some idea where to do. if I had unlimited time, I would do everything but I don't so that's when I start to delegate what has to be done.

Ian Walsh · Answer

JD Martin is right. You are always the most important member. Second to you would probably be contractors for flippers.

JD Martin · Answer

My "team" is a bunch of movable parts that are plugged in and out as necessary. Because I self manage, having a reliable group of specific contractors has been helpful - especially a good HVAC guy, as tenants don't like to sit around dying without AC. My agent has been an important individual in my business, as he keeps a good finger on the pulse of what's going on and fills me in on leads when they come available. Without good houses to buy, I'd have nothing to rehab or rent. I don't do much with financing, but when I do I use a couple of different banks, and having good relationships with the financing department has been helpful. I guess a lot of this is going to depend on what you ultimately end up doing. If you are running a couple of hundred apartments, your onsite caretakers and property management company personnel are going to be important assets. If you are doing nothing but flips, you better have a good GC. If you aren't self-financed, you need a strong money man behind you.

Justin Young · Answer

@Jd Martin I understand that point of view. Maybe I should have made myself clearer because in order for someone to want to be successful, they first need to have the mindset of wanting to be successful. I fully agree with yourself as being the most important person on a team because without you, there would be no reason to even have a team. But after that, who would you consider the "2nd" most important person on your team?

Jay Hinrichs · Answer

@Jd Martin you beat me too it ... by far the most important member is yourself.. your drive your passion your persistence in the face of challenges etc etc. @Michael Bertsch Of course happy wife is critical as well.