Teams Work

So, you've decided to be a Real Estate investor and you've listened to Robin's Rule and got yourself a partner to help with one side of the equation or the other. Well, just as the NY Yankees don't have just TWO players, there are more positions for you to fill on your team too. And one thing most Investors don't think about on their team is back up players. Yes, there are guys on the Yankees team who are not starters but substitutes; and yes, they play an extremely important role just as the subs on your team will. First we'll talk about the team on the field and start with your scouts. They are your pitchers. Scouts are people who find deals for you for a fee and turn you on to them. Scouts are not always plentiful so the next thing is Real Estate Agents. Put several good Agents on your team. Without deals or the pitcher throwing the ball - you've got no game. Let them know what areas and price range you are willing to work in. Then you need a crew of workmen. Since you are just starting out these guys will likely be subcontractors and not full time employees. This group is like your groundskeeper - they keep the ballpark in good condition. Without them, you're playing and cleaning and painting and...well, you get the picture. Next, get a good home inspector on your team. He's like your outfield. He'll keep the long balls from turning into home runs against you. You may not always need an inspector, depending on your level of expertise with fixup. But, if you do, they are invaluable and can save you tons of money. I had one take me completely out of a deal when he discovered black mold in the walls of a property I was going to buy. Saved me 60,000. Now, it's time to bring in the long ball hitters - the Attorney and the Appraiser. I cannot stress to you how valuable your Attorney is when you are doing deals. He gets paid the big bucks because he's the heavy hitter, but he's worth every dime. Establish a relationship with your Attorney if possible and get someone you are comfortable with. Does he explain things to you, return your calls in a reasonable time, and discuss problems with you? If not, I suggest you look somewhere else. I also suggest you work out a reasonable retainer fee with your Attorney, if possible, so you can get advice on deals that you are working on. Who did Donald Trump have sitting at his side through many episodes of the Apprentice? George Ross, his Attorney, and you can bet George doesn't just do closings. Next, you need a good relationship with an Appraiser. An Appraiser can give you good information and once they know the quality of the work you do they can give you a "subject to" appraisal that will probably be very close to what you thought the after repaired value would be. You can't always work with the same Appraiser but you can more often than you would think. Then there's the bullpen and the substitutes. I cannot stress enough how important these players are. You do not want to get caught with a player who can't make the game. Make sure that, particularly for your rehab crew, you have subs who can come in and finish the game. This is a must and can save you a ton. And last, a great team has a great Coach. A terrific coach can mean the difference between a winning or a losing team or in your case, money gained or money lost. Don't be penny wise and dollar foolish; hire a good coach, consultant, mentor, advisor; whatever you want to call them, and save yourself a lot of grief and money! What you spend for them and what they can save you can potentially be thousands of dollars.Why wouldn't you do that?

Robin's Rule # 15: "A successful team is a group of many hands but of one mind."

Need a consultant or investor partner? Contact me at my website where you can fill out a form on the properties page to reach me or call 1-800-558-8830.

"Put me in Coach, I'm ready to play - today!" -John Fogerty

At some point you must decide whether to sit on the bench or get in the game. Sure, it can be intimidating at first but there's no place like being on the field(or going to the Bank). So it is with Real Estate investing. If you sit around and don't ever get in the game; well, you're guaranteed that you lose. But if you try; hey, you just might win. Real Estate investing is like playing a board game. You can win, but you must take some chances. No one ever said there is no risk involved; there is. But by learning as much as possible you can minimize your risk. Kind of like the difference between playing poker and knowing how to play and not knowing. Not knowing the game is probably going to help you part quickly with your money. Prepare yourself to get in the investing game in every way. Just like a Boxer trains for his bout, you need to train for yours -read, learn, and experience. Then again like the Boxer who gets a partner to spar with, I suggest you get a partner to start with. One who is either experienced in Real Estate investing and can walk you through the minefield or someone who has a skill you don't have, like knowledge of how to fix up property. Two heads are better than one and you will have someone to bounce things off in times of trouble. Not to mention the mathematics. Your partner may know someone in THEIR network who can provide you some answers you wouldn't have been able to find by yourself. Or, your partner may have access to the money you need to do a deal. It's part of the concept of team sports. You can rely on your partner to cover a base you can't get to. But, partnerships can be tricky, particularly in Real Estate. Always consult your Attorney before getting into one. It helps to have support at home too. Having an at home partner who agrees with your investment strategies is critical. Take time to explain to them what you are doing so they will not worry that they may end up stuck out on a limb if you have a Real Estate problem. Believe me, I've seen lots of people get out of investing simply because their at home partner wasn't comfortable with their investment ideas. Your team should work in sync. Like a good football or basketball team. Don't get the "paralysis of analysis". Remember, at some point, fight night comes and you must climb in the ring. Let's hope all the people you have in your corner help you get the great deals and make the big money!

Robin's Rule #11: "If wishes were horses, beggars would ride"

Next Blog I'll tell you how to put your team together and who should be on it