There a group of individuals in related fields that you use to find, inspect, insure, repair and resell your properties.  They are people you are probably working with now but you have not focused on them to bring them together as a team.  They don’t even need to know they are on a team.  Your Power Team is made of:

1.Realtor:  This is the person who finds the properties and can help you sell them afterward.  They can get property information, checks listings, gathers expired listings, resale information, etc.  The most visible and the member most likely taken for granted.  This person is the start of your search for property.  You need someone who understands how an investor looks at a property.  This is very different from an end user or homeowner and not all agents understand this idea.  You want to look for someone who has been in the professions a few years.  Enough to get experience but not to much to be cynical.  That can happen when an agent has been burned by past real estate investors.  So be very clear on your objectives and property criteria before you approach the agent with your needs.  You want information but you also want to protect the agent’s time.  Time is money to them and spending with an inexperienced investor who does not know what they want or doing is the quickest way to end the relationship.

2.Title Agent: The title agent is the person who will help you close your deals.  Their customer service department can also provide information about types of properties in your area, pre-foreclosures, notice of default, etc.  Having a good relationship with a title agent may not save you money but it can save you frustration.  This person controls the closing of your properties.  It certainly doesn’t hurt be nice to someone who can speed the process along or double check the need of a particular document at the last minute.  The title company has a wealth of knowledge and it is time invested getting to know your agent and the services they provide.

3.Property Inspector: The property inspector is the person who will double-check your preliminary inspection of the property and report on any defects he finds.  It is his job to thoroughly inspect the property and report on it.  We perform an inspection on every property we buy or don’t buy.  This is one team member you may be inclined to skip on a deal that is tight on money and looks OK on the surface.  That is when you need them the most.  Try to attend the first couple of inspections and see what they are looking for.  This will help you in your inspections.

4.Insurance Agent: The insurance agent is the person people love to hate until they need them.  This is a person who can take care of your properties and your company.  A good agent will watch out for the their client’s insurance needs and will recommend coverage that is lacking or would better spent in other areas.  They will coordinate with the title agent to close the properties on time with coverage in place.

5.Contractor: The contractor serves two functions on our team.  One is to provide an estimate on properties that need more than cosmetic repairs and two to repair the properties we buy.  We like to work with one contractor if possible.  We generally get better pricing and faster service.  The contractor will give our jobs priority because we are repeat business.  Repairs on a property can make or break it and having an estimate of repairs prior to closing can bring peace of mind and profits.

6.Other possible members:  The list above is our core group but there are others that can be added as you grow.  Attorney, mortgage broker, appraiser to name a few.  An attorney can review documents and keep you out of trouble.  A mortgage broker is a good team member for us on the resale side.  We buy all our properties with private money and do not need a bank loan, but it is nice to have a mortgage broker on the team to refer buyers to get qualified.  They can also work with a tenant-buyer to help repair their credit while they are saving for a down payment to buy one our houses in a Lease Purchase Option.  An appraiser can double check our property values in a particular neighborhood.

An extra-added benefit of a Power Team is they are always working for you.  This is a group of people who know that you buy property and what type of property.  They will watch out for this type of properties and call you when they see one.  Why, because if you buy the property you will employ their services.  You make them money while they make you money.  

So instead of jumping to many people to get your services, start focusing your needs on a particular individual in each category so you can build a relationship with them.  It will benefit your real estate business enormously and increase your profits while decreasing your losses on properties you should not buy.

Michael D. Smith

Michael Smith has been a licensed architect in California and a real estate entrepreneur for over twenty years. He lives in Salida with his lovely wife, Mona and their four children. He splits his time between Michael D Smith, Architect and JM2 Investment Properties. Jeff, his brother, and he are developing TwoAverageJoes.com to educate other real estate entrepreneurs.

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