Ready to expand my portfolio ???

Question

I rather move forward instead of waiting until I have the "Perfect Team" in place. What's an ideal team and what components' should I consider to have in place before I start searching for deals' to move forward with the BRRRR strategy ? CPA, Electrician, plumbing, or a GC ? Where should I start ?

Dan Bryskin · Answer

@Isiah FergusonWith home inspectors advice is the same. Find a best guy in town. In my state it takes 2 week course for them to get a license, and somebody fresh out of the high school, who completed the course won't be very useful. The best inspector I worked with, was a retired builder and an investor himself. Not only was he able to identify and explain the problem, but also explain what will it take to fix it, estimate a cost of repairs and suggest qualified contractor. This days I use my crew for the inspections, but if investor requests a report, I work with a 27 years old kid, who is a second generation inspector and loves what he does. I would not walk through the property with inspector and contractor at the same time, I'd use inspection report to validate a contractor, and walk through with contractor to gauge inspector. Everybody charges about the same for inspections, work with the best. Good luck.

Bart H. · Answer

IMo find a real estate agent who works with investors and is willing to teach you the ropes, especially if they have recommendations for contractors.The next step is find a good Gc, one you can trust. If they are any good, and along with investor centric real estate agents, they will be able to help you with HVAC, Plumbing, Electrical, masonry, tile etc.

Dan Bryskin · Answer

@Isiah FergusonYou get it. Except your inspector can be full of you know what too. He can look at the little crack at the foundation and tell you you better use his brother to fix it. So, play one against the other, just like you said

Isiah Ferguson · Answer

@Dan Bryskin Good points. I think it make more sense to walk through with the inspector first to see what wrong with the property. Secondly, walk through with an GC to give me an estimats of my scope of work. I don't want the same person fixing the problem the (GC), telling me what problems i have with the house. That person can be making stuff up along the way. If i have the inspection papers, i can see exactly what's wrong with the property and them get estimates from at lease 4 GC to get the best numbers for my budget for the scope of work.

Curtis Harvey · Answer

@Isiah Ferguson I always have a home inspection done as well as walking it with a GC. I just think it is worth the cost of not knowing all of the issues. My GC is thinking in terms of how much he is going to make as well as how much work he has to do, and the home inspector is thinking in terms of what needs to be fixed.No I am not familiar with that structure. I will say you need to protect yourself and separate you assets.

Rolanda Eldridge · Answer

@Isiah Ferguson...I'm not sure about the "Perfect Team" but definitely put some people in place. Start with a great Realtor for sure :) After you find a property, you can find tradesman to help rehab. Ask the realtor, investors, family, friends for referrals. Once you find the first deal, class begins. You will learn. It's not perfect, but keep looking for answers...GL

Dan Bryskin · Answer

@Isiah FergusonThe reason you put your free and clear property under an LLC is to limit your liability and protect your assets. Good move. Now you are running into the issue. The cheapest finance product out where is 30 year home owner loan. You can have 10 or more of them. It is guaranteed and subsidized by federal government, hence offering the best rates / terms. The problem is this product is designed for owner occupants, and not available for corporations. For corporations, you are looking at commercial financing, and terms are not nearly as attractive. That's why banks are telling you to transfer property into your own name. The real question you have - how do I minimize my liabilities, taxes and risks while utilizing the best available financing. What's the appropriate holding structure, proper way to do business. To answer this, look at this tread for example:https://www.biggerpockets.com/forums/49/topics/426...Good luck.

Curtis Harvey · Answer

@Isiah Ferguson I would find a real estate agent, find a good wholesaler in the area, so that you can get properties or have access to both of their pipelines. The wholesaler will always present properties below market value and the agent will constantly send you properties in your area that fit your criteria.I would find a contractor or at least a really good handy man that can walk the properties with you. You will want to have a home inspection company walk them during your due diligence phase.I would also consider a lawyer who can get your LLC or company structure setup. just a few things you will need to get going.

Dan Bryskin · Answer

@Isiah FergusonStart with the excellent realtor. You want some who is an investor himself, preferably in the similar class of assets as you are looking at and knows a thing or two about construction. I have one like that. It makes things so much easier. Good realtor is an adviser, a sound board, skilled negotiator and here to help you avoid costly mistakes. You want one who is humble enough to execute your strategy, not complain about you wasting his / her time. And your realtor can't be lazy. If I need 20 offers to go out at night, they will. Not everybody will do that, and it is important. The rest of it depends on how involved you want to get. Accounting throughout a year is pretty simple, as long as you have a right setup. You may get somebody to help you set books up, keep them up, and have professional look at them once a quarter. Defiantly leave taxes to professionals.GC - I would not look for one before hand. Get something under contract and start shopping for GC's. Good one will be a godsend. But likely you will have to go through a few, before you find one or two you like. Electrical, plumbing other trades - i'd leave it to GC in the beginning. Visit job sites twice a day, keep phone numbers for everybody on the job site. GC is much more manageable to start with. If you manage a number of rentals, ether get a management company or some systems in place ( that you can start one before the purchase). Make sure tenants are vetted, rents are payed online, issues are logged in the system by tenant. You will need a good maintenance guy / service.Good luck

Isiah Ferguson · Answer

@Rolanda Eldridge Thank you for the feedback. I will most definitley have some people in place before i start searching for properties.