How did you find your team?

Question

Kevin Harrison · Answer

You don't just assemble a team overnight, you build a team. Typically you work with people who do the various tasks you need and you just keep using different people until you find one that you are satisfied with. Except for contractors. You always need a back up or comparison contractor otherwise they will get complacent and prices will slowly rise on you over time because they are comfortable and know you will pay it if you are not getting competing bids. I am a building engineer and see this all the time. When we call them on it its usually amazing how fast their price comes down and responsiveness goes up. But we tent to keep 3-4 companies in rotation so they don't get too comfortable and rotate which one we use every 2-3 months or if something happens. It keeps them on their toes.

Jeff B. · Answer

Word of mouth references.  Take note of what's going on around the neighborhood, who's making repairs.  AFTER the works complete, go back and ask Who, What and were you satisfied?  Contact other owners and ask about property management, yard care.

It took several years to develop a GOOD team - - one I could just pickup the phone, call and the job was done perfectly.

Team building is unfortunately a trial-and-error process.

Ben Wendt · Answer

@Tristan McGowan I'm still in college, part-time, while working a full-time job, so I understand your time constraints. One of the more important things is to project yourself with confidence. Yeah, you're new to the game. But if you've done your research and believe in your dreams and have a lot of faith, it makes it a whole lot easier to generate responses to your queries.

I would start by searching BiggerPockets for people near your area. I would then recommend going online and seeing if there is a Real Estate group in your area. A Google search should be sufficient for that. Then, see what Real Estate companies are represented in your area. Finding a good Real Estate agent first is something I recommend you prioritize, as they can help you find deals, negotiate sales, and sell your deals once you've acquired them. Then, the phone books should be your next source. Best of luck to you, sir!

Ben Wendt · Answer

Thankfully I was lucky and had an incredible real estate team work with me and my wife in acquiring our first home that I have decided to use for all of my flips, both on acquisition and in selling. I hope to make them lots and lots of dollars as a return to the incredible service they provided, so I haven't needed to qualify a new real estate agent/team.

Some criteria that I used when determining my general contractor and financer:

How quickly did they respond to my communications?

Are they familiar with the terms that I use? ARV (After-Repair Value), DOM (Days on Market), inventory for your area (number of houses for sale in an area divided by the number of sales per month), and a familiarity with manipulating the MLS system are some starting points.

Have they done something similar to what I'm doing?

How do they evaluate properties and deals? Do they use contracts and do they pull permits?

I think the most important thing is how communicative they are with you and how supportive they are of your plans. If they are wanting to make money with you and communicate within a reasonable time frame, I say give them a chance and develop a relationship with them.

Kevin Harrison · Answer

I am not saying your contractors are all bad guys who are out to cheat you. What I am saying is that have several keeps them honest. Kind of like lock on your front door. If someone really wants to get in they can, either through a window or enough force, but it keeps the honest people honest. When they know they are going to get all your business with no competition there is no incentive to be competitive, it doesn't make them bad people, it's just human nature.

Although you missed the fact that we generally have a pool of 3-8 contractors for any given task that we use. We have done business with all of them before and will in the future, we just don't use the same one all the time.

Sam Shueh · Answer

Suggest you find a not so busy helpful agent who can provide info.

A busy agent does not have the time to show properties who just start out looking.  My question is are you ready financially and emotionally?

Ben Wendt · Answer

@Brandon L. Agreed. Having depth to your network will ensure that you are able to keep the REI machine humming along smoothly.

@Kevin Harrison I certainly see your point in rotating out contractors and I think I'll try and implement that as my business expands. But I would respectfully consider this as well:

Ultimately, REI is about how well you can maintain and strengthen relationships. And I think spending time to sit down with the normal contracting team that you use and trust and asking about what their goals and dreams are can help you understand and find a reasonable price point for their services that is mutually beneficial. We are certainly trying to get the best price for the best services, but we also don't want to short-change the people we work with in pursuing their own dreams.

I'm definitely not saying you're wrong, and I think rotating out contractors like that is a good business practice to ensure you get quality work and quality pricing. And maybe you already have the perspective that I described above. I believe that with the right communication and relationship in place, you won't see the price creep in prices or quality of work that you observe.

Brandon L. · Answer

@Tristan McGowan the more relationships you build the better. You will find the people you like to work with naturally.

How did you find your team?

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