How do I create a team around me?

Question

Hello, I am very new to the investment world. My main focus right now is financial literacy and understanding Real Estate investing to the best of my ability. I am at the phase where I need to start creating a plan for myself. In the meantime, how do I start putting an investment team together. For instance, I believe that wholesaling could be a great vehicle for me to get started. Nothing sounds better than learning how real estate investing works and educating myself while also making a little extra cash to invest. I know I don't need money to make money but I feel like I should have some savings to get myself started, I'm really looking for as much education on the process as possible. I read books, blogs, watch webinars, listen to podcasts and I also attended my first local investor club meeting just a few days ago. My question right now is, how do I start acquiring a team. Realetors, CPAs, Brokers, Lawyers, how do you find the ones that work with investors? Do I just call and ask all my local ones I can find? And if so what do I really say because I still don't really have an idea what I'm talking about. I am not really asking to be spoon fed but I am the type of person that learns from watching somone else and experiencing it first hand not just reading about it in books. Once I understand something to a certain level of confidence I excell at it. Anything helps this newbie. Thanks for your time, I'm eager to learn.

Andrew Johnson · Answer

@Gergely Tokics If you don’t have the ability to close then odds are your purchase contract is somewhere between disingenuous and a lie.  All of those “Cash for Houses” folks seldom have the cash 🤷🏻♂️ So what broker or agent will tell their client to sell to a buyer that’s isn’t a buyer?  What seller would pay an agent to sell to a non-buyer who will try to sell the contract?

As for why I lack love for the profession, I think there are a myriad of ethical issues, some legal issues, and sometimes it just boils down to competence.  I’ve never found a wholesaler that didn’t overestimate ARV, overestimated rents, and underestimate rehab costs.

And I do think there’s massive marketing efforts out there to sucker in people with no money to “no money down real estate” programs that encourage you to open credit cards (or other dicey things) to pay for their super duper secrets.  While - the whole time - just ignoring the whole “unlicensed brokering” side of things like it doesn’t exist.

But, hey, that’s me.

Steve DellaPelle · Answer

@Gergely Tokics Definitely attend your local meet-ups. Not only will you meet investors there but you will meet attorneys, brokers, agents, CPAs, etc...literally anything your team needs could be at these meet-ups. I have been to only about 3 or 4 and I have met someone from each facet of Real Estate, it's amazing.

Establish these relationships and also ask for referrals.

Good luck!

Aaron K. · Answer

@Jay Helms hit the nail on the head with key words, that is what allowed me to find this post.  Wholesaling is a difficult way to start because contrary to popular belief it does take money and a sustained marketing effort to be successful with it.  The Inland Empire is a great place to look for properties though as it is one of the fastest growing areas in the state along with the central valley.

Jay Helms · Answer

Yep. Just call and ask @Gergely Tokics. However, most all, will tell you, "Yes I work with investors." In will take some time to build your A Team. I typically ask for referrals and if a name keeps coming up, most likely the one I'll go with.

A lot of times these realtors know CPAs, Brokers, and Lawyers. Ask the lawyers who they recommend for the other ones, ask the CPAs who they recommend for Brokers/Lawyers, etc. Take them all to lunch and have a informal interview (buy lunch).

Another thing you can do is post here, using keywords to highlight your question. For example. "I'm looking for realtors, CPAs, brokers and lawyers in Moreno Valley. Any recommendations?"  Moreno Valley or your target market is the keyword.

This community is very helpful. Best of luck!

Matt K. · Answer

Find a lender, a good one, one who knows their stuff. They will then point you to a realtor who, like them, knows their stuff. The realtor will know the contractors, the CPA, and maybe a PM (more likely the PM know the realtor). Then ask both lender/realtor for insurance person... there you go. Team Created.

Jeff Zimmerman · Answer

Hey Gergely, I think the best way is to just start meeting and talking with people that are involved.  As an example, when it comes to finding a good real estate agent or broker, once you start talking with them you will know pretty quick if they know what they are talking about when it comes to investment properties.  Same is true for lenders, managers, etc...

Also, from my experience, the best way to get started in RE investing is to become an agent.  As an agent you can shadow the people that do the kind of deal you want to do, get to know buyers and sellers, and figure out how they do what they do.  That sounds way better to me than trying to wholesale. I started as an investor which led me to being an agent, but I could have very easily done it the other way around.  Good luck!

Rachel H. · Answer

@Gergely Tokics Like anything, you'll need experience first. Interview as many people as you can for each team member you're seeking. Get referrals from reputable real estate investors. In the beginning, it's good to be prepared. But sooner or later, you'll have to pull the trigger and act on your plan. The hardest thing if finding a niche that works well for you and your personality. If you're interested in reading more, I wrote a book on this exact subject. Best of luck to you on your real estate investing journey!

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