How To Establish A "Power Team"?
Investors who have been in the real estate business for quite some time are familiar with power teams and often belong to one. A real estate power team is the assembly of a group of people who sell products or services to the same customer without taking business from each other. This group of individuals agreed to form a team that will work together and committed to bring referrals to each other. They are important when building a business empire because they are allies that protect each other from financial harm, quickly generate finances, and assist each other in achieving business goals.
It may take a while for you to put together a successful power team, and one good way to find possible team members is through referrals. Another way to find team members is by contacting your local REIA where you will be able to meet other investors who might want to be part of your team.
There is a long list of possible people with complementary professions that would be great for your power team, and if you are just starting in the real estate industry, these people are the most important to establish a working relationship with.
Mentors
Generally, people would be honored if you asked them for advice, and looking for someone who has successful experiences in the local business is a smart way to become successful yourself. One thing to remember when you find someone is to offer financial compensation for his or her valuable time and never expect someone to help you for free. Time is money in the real estate industry. In fact, time is money in any businesses whether it is in real estate or not. Also, be aware that mentors are not there to do the things that you cannot do. They are there to share their experiences. We do caution you when you try and find a mentor, choose wisely and take your time. A mediocre mentor is easy to find but a most valued ones requires more digging.
Realtors
A licensed and established realtor on your team can help you find the right properties in your local market worth investing in. They are a fountain of knowledge about the housing market conditions and the neighbourhood. Having a reputable real estate agent on your team will ensure that you will be given accurate information about the property — its condition, price and value.
Accountants
A real estate business will require a good business accountant. They should be chosen carefully and should be able to calculate if your business is making a profit through the inflow and outflow of cash. They should also be able to minimize expenses, save on taxes and create an accounting system that you can easily use when tracking your expenditures and incomes.
Lawyers
Purchasing and selling properties is a legal process and having an attorney who is specialized in real estate law on your power team is very important. A good lawyer will be able to protect your company from litigations and assist you with any legal particularity related to your business organization.
Title Officer / Escrow Company
A good working relationship with a great Title Officer / Escrow company will help you navigate through a faulty title and or handling concurrent transactions. Most importantly, is there something you overlooked? If you have a tendency to overlook a few minor details or need another set of eyes to better read the fine print, then a good title company can help spot these issues for you. We've worked with Nevada Title for years and they've saved our butts on numerous occasions.
Home Inspector
The clock is running once your offer is accepted, and you need to schedule your inspection. Many inspectors belong to the American Society of Home Inspectors, although membership in this organization doesn't assure competence. Many states do require home inspectors to be licensed. Your home inspector is your independent eyes and ears when it comes to your real property. They should be independent of your realtor, your contractor and your lender. Their sole responsibility is to tell you the facts about the property you intend to purchase.
Contractors
Finding a good contractor is tough because they are always in demand. However, if you already have one on your team then you are in possession of a great asset. We've worked with "Nevada Home Remodelers" on many of our rehab projects and they've given us useful information about the building processes, like how much work a property needs and how long it would take to get that work done. A good contractor needs to be really handy with repairs and remodeling of a property. They could also point you to useful and reputable sub-contractors like electrician, plumbers and landscapers that they have worked with before.
By now I hope you have a good idea about the people to look for when starting your real estate power team. As you grow in your real estate business, there will be more people that you will need on your team to help your business empire run smoothly.