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Do I Need a Rental Investing Team?
In every rental investing book in the course that you will come across you will hear the phrase “rental investing team”. Most experienced rental investors encourage beginners establish a successful real estate investment team early, because it can make all the difference years down the road as an investor!
In this article we will go through 10 essential members of your real estate investment team.
Your rental investing team should include:
- Spouse and Family
- Real Estate Agent
- Mentor
- Lenders/Banker
- Contractors
- Property Manager/Management Company
- Insurance Agent
- Home Appraiser
- Accountant
- Inspector
On top of this we will discuss the purpose of real state team, steps to put start your team, how to put together your team, the structure of your real estate investing team , and finally we will go through each of the 10 essential members of your team.
Purpose of a Real Estate Investing Team
The purpose of a real estate investing team is to have experienced individuals you can reach out to during every stage of finding, buying, rehabbing, and renting a property.
Be honest with yourself, do you know everything about real estate?
If you are a real estate agent you potentially have some good experience with understanding the market and understanding properties. However, most beginners in real state are not agents.
Especially if you are brand new to the concept of rental investing, you are very unlikely to know everything that there is about real estate.
And, that is completely okay! I have two properties at the time of this writing and I can confirm that I do not know all the details that pro rental investors know. In fact, many “pros” and “gurus” still don’t know everything – that’s why you need a team of individuals to reach out to!
Additionally, if you plan to have an out-of-state investment portfolio it is essential to have a team that is reliable.
As we go through this article, keep this in mind: You’re only as good as the real estate investing team around you.
It is important to start out realizing that being a rental investor is impossible without connecting, networking, and relying on the help of others. You cannot have 10 different jobs, although, there are a handful of hats you can wear as an investor.
Let’s dive into what it takes to start an investment team.
Starting a Real Estate Investment Team
As mentioned at the beginning of this article there are at least 10 different individuals you need on your real estate investment team. The reason I mentioned “at least” is because there can actually be even more individuals involved, but these 10 are the most important!
- Find Others Who Are Involved in Rental Investing
There are many ways to invest in rental properties. There are flippers, wholesalers, house hackers, people who buy and hold single family properties, those who do live-in-flips, and so forth.
Check out this big list of rental investing terms with a free printable!
The structure of the methods above are very different, yet still are under the same concept of real estate investing.
Therefore, as you start out thinking of your future rental investing team, you’ll need to consider the type of investing method you want to get into.
- Find Ways to Meet Your Future Team Members
There are countless Facebook groups, BiggerPockets forums, local meetups, and courses/seminars.
Finding members of your future team doesn’t come immediately, and does not happen on its own. In fact, it takes effort on your end and can take time to build relationships.
How to Put Together a Real Estate Investment Team
The following tips are proven ways to establish rental investing team members.
Connect with Investors
One of the best ways to put together a rental investing team is to connect with other investors. Search on Facebook, ask friends, go onto BiggerPockets, and ask acquaintances who are in real estate or lending. The key here is to start conversations. Once you get names of local investors (note: try to find an investor in the specific niche of rental investing that you’re interested in) then reach out to take the investors out for lunch or connect via text.
Ask for References
When you meet up with investors, it is recommended to ask them a handful of questions. One of the best places to start is asking for references. This can include their favorite real estate agents, lenders, and property managers. Getting connections from established investors can save you incredible amounts of time down the road!
Get a Mentor
A mentor is a person who can specifically guide you through your investing journey. They tend to be highly connected and can save you time and effort regarding building your real estate team. A rental investing mentor is highly recommended, but not absolutely necessary. We will go over this topic more below, but be sure to
Go check out this detailed guide to learn exactly how to get a rental investing mentor!
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Structure of a Real Estate Investment Team
Having a real estate team essentially means that you have business relationships, partnerships, and/or connections with specific people or companies.
These are people who you bring business to, or, who are essential for the buying, flipping, selling, or renting process.
They may be individuals or companies who you need for only one step of each property’s lifetime in your portfolio, or are necessary throughout owning and renting a home.
If you keep a binder, then the contact information for each of these individuals should be in there, or at least kept nearby.
Establishing a real estate team isn’t that difficult!
Take the advice from above regarding reaching out to agents, other investors, or individuals who may have connections.
The key is to get multiple references and ask multiple people for their experience and expertise. When you find a person or company who seems to be within your price range, and who fits your personal criteria for that member slot, let them know that they will be your “go-to” person to get the job done!
Having people on your “team” does not mean that you’re actually hiring people.
Instead, creating a real estate team is as simple as knowing who you’ll reach out to if you need help. Who will be your go-to real estate agent? Your go-to lender or bank? Your go-to contractor?
Below we will go through each of the 10 essential members of your rental investing team, how they differ from each other, and why each is important!
10 Essential Members of your Rental Investing Team
1. Spouse and Family
Your spouse and family are essential people in your rental investing team because they will be the ones who will support you throughout your growth as an investor.
Having your spouse and family on board is the most important key to a successful rental investing business! Reason being, you may sacrifice time, money, and events in order to grow your wealth in real estate, and they need to be supportive throughout the process. Your family does not necessary have to be involved with the rental investing itself, but it is important for their understanding and support from day one.
2. Real Estate Agent
Real estate agents are an important part of your team because they help you find deals, they have access to the MLS, and can help you determine if a property would make a good investment or not.
Having a top-notch real estate agent who has insider access to deals or is very knowledgeable in investing is a huge asset as a rental investor! Being a real estate agent who works primarily with investors takes a different mindset and eye for detail and numbers. I highly suggest finding an agent who works with investors or is an investor themself, especially if you are brand new to real estate investing!
Interested in learning why you should become an agent as an investor? Read about it here!
3. Mentor
Mentors are important to your rental investing team because they can guide you through the process and help you avoid making poor decisions.
Having a mentor can make a night-and-day difference when it comes to your experience as a newbie rental investor! A rental investing mentor is a person with experience in real estate, who can take you under their wing and help you through the process of acquiring properties. There are some mentors who you much pay for, and others who will help you without any pay.
4. Lenders/Banker
Having a good go-to lender is essential for your rental investing team. They can provide the opportunity to purchase a property if you don’t have full cash to purchase a property.
There are lenders and bankers all over who lend for rental properties – but it is rare to find lenders who can educate you through the process and who understand the beginner’s experience as an investor.
5. Contractors
Having quality (and budget-friendly) contractors are important for your rental investing team. They are the people who do physical work on your property, like painting, sheetrocking, and adding bedrooms.
This is because it is not smart to just hire whomever for the work on your properties! You want to find individuals who understand the materials that last – rather than cheap materials that are for looks. Additionally, when you get more properties in your portfolio, you’ll want to be sure you have inexpensive labor as well!
6. Property Manager/Management Company
A property manager is someone who communicates with tenants, takes payments from tenants. and hires contractors to manage the property.
Having a good property manager is not easy to find, and it can take time and networking to find a person or company you can fully trust! This is where having a network of members can help you find a great manager, if you choose to hire one!
Learn exactly why you should consider a property manager over managing a home yourself!
7. Insurance Agent
Having insurance on a rental property is necessary, and it is important for an agent to understand how rentals work, and to have experience with other investors.
It is important to find an insurance agent early on, and someone who you can meet with in person to discuss your plans as a rental investor. They will help you choose insurance plans for your properties.
8. Home Appraiser
Home appraisers are necessary for rental investors. They can be the make-or-break decision for purchasing properties!
Having a connection with a home appraiser is not as important as the other essential team members, but you will certainly have to work with one, with each property you purchase!
9. Accountant
An accountant with personal rental investing experience, or with clients who are investors, is an essential part of your rental investing team!
There are many potential tax deductions that are involved with owning rentals, and there are many tax components of owning your own rental business. Be sure to find an accountant who has experience with rental investors (or has properties themselves) to be sure all your numbers are correct!
10. Inspector
An inspector is an important part of your rental investing team because they will be able to inform you of potential expensive problems with a property.
You can hire your own inspector, but many real estate agents have ones they highly recommend. Be sure to find an inspector who has experience with rental properties, because they will specifically look at long-term damages that could be a make-or-break problem with a potential purchase!
Summary
There are many people involved when you buy a rental investment property!
It is important to consider taking the time to network and meet people within each of these categories. Especially if you live away from your investments, you must find people or companies you trust and establish a relationship with those you plan to do business with.
