Posted over 4 years ago

4 Reasons to 'build your Real Estate investment team'

4 Reasons to 'build your Real Estate investment team'

BiggerPockets has added immeasurable value to me, my business, my clients and my team. I think the majority of the nearly 1.7 Million BP members would say the same.

The most valuable feature, in my humble opinion, is the BiggerPockets forum. This is where the REAL magic happens. Anyone you're looking to meet is just a post, comment or tag away.

A popular forum topic for new Real Estate Investors or "newbies" is the topic of 'team building'. Whether you're just getting started on your journey, have experience, or you're done researching and feel ready to take your next course of action, building your team is something that can surely propel you forward.

Your team will consist of lenders, attorneys, Realtors, contractors, wholesalers, handymen, insurance representatives, title representatives, expeditors, home inspectors, mentors, and... I think that covers mostly everyone - If I left anyone/anything out, please let me know in the 'comments' section below!

Who we put on our team is important but WHY do we need a team in the first place?

Reason 1 - To form and strengthen relationships

Entrepreneurs in any industry will agree that 'relationships matter'. This is especially true in Real Estate. One introduction can open doors to countless opportunities. Relationships take time to build which is totally fine because your Real Estate investing journey is a marathon, not a sprint!

We can achieve greater things together than we can alone. Building your investment team will help you find the folks that will help you today, tomorrow and 10 years down the road. Quality individuals will introduce you to other quality individuals. Your network can lead you to more deals, business partners, and exciting new opportunities. The law of attraction will certainly work in your favor if you surround yourself with the right people.

Reason 2 - To insure streamlined communication

Have you ever watched an All-Star game for a team sport? It usually takes the players a few minutes to get used to their teammate's style of play. This generally isn't the case for teams who have been together for multiple seasons.

When you form your team and introduce them to one another, they will begin to work the kinks out from day 1 to make sure that they're ready for what lies ahead. Having your team on an email chain, group chat, CRM, or regular conference calls can make all the difference in the world when it comes to negotiating and closing deals.

The OFFER-to-CONTRACT/ESCROW phase can be the trickiest part of the deal and your deal can fall apart if your team is slow to respond or worse, impossible to get a hold of.

Reason 3 - To have a smoother transaction

Let me be very clear here... 99% of deals have at least 1 hiccup, delay, standstill, or frustrating moment. Unfortunately, I have yet to see the perfect deal close.

However, if your team is on the same page, you'll be in good hands. Most deals are delayed due to contract negotiations, financing concerns and title issues. These delays can last hours, days or weeks.

Your team can navigate around any obstacles by:

- making sure that documents are sent in a timely manner

- all parties are updated regularly

- holding the other side of the deal accountable for their responsibilities during the deal - i.e. repairs, replacements, contractor estimates, clearing any title issues, etc.

Reason 4 - To save you time and money!

What can be better than Reason #4? Who wants to spend more time and money than they need to?

A Realtor with access to up-to-date market data can help you save money by making competitive and realistic offers.

An Attorney can put contingencies in place to make sure your Earnest Money Deposit is protected and insure a closing timeline that works for you.

A title company that has systems in place can help you close in time to take advantage of your mortgage interest rate-lock. This helps you avoid paying rate-extensions