The members of your investing team will directly impact the success of your real estate business. That said, too many investors think they can do everything by themselves. Of course it is entirely possible to run your own investing business by yourself. However, the individual is more likely to feel the wear-and-tear of the industry. As a result, their work may begin to suffer. Contractors, realtors, attorneys, accountants and mortgage brokers are all there to help you. Make sure you take advantage of their expertise. How you treat them and the communication you share will have a direct impact on how responsive and effective they will be. Even though they need you to close deals, you need them just as much.
The real estate industry is full of misconceptions, one of which suggests that you need to be all business. You should certainly take your work seriously, but there is more than one way to get the job done. One of the keys to cultivating a successful team is figuring out the personalities of the people around you. Some people will respond only to deadlines and when the pressure is on them. Others tense up and don’t do as good a job as you are looking for when confronted. Just like every investor is different, so to is everyone else. To have a successful business, you need to know a little about who you are working with.
The advent of technology has decreased personal interaction. A quick text message may keep your team in the loop, but nothing replaces a phone call or sitting down and actually talking to someone. The people you have the most interaction with, like your contractor and realtor, should get your undivided attention. You don’t need to spend three hours at lunch, but a quick thirty minute cup of coffee will make them feel personally vested in your business. If someone feels that they know you, they will be much more inclined to go the extra mile or do a favor for you. A request though a text message or email can get your point across, but it will not be nearly as effective as sitting down and talking to someone.
The real estate business is very time sensitive, but you need to know where to pick and choose your spots. Not every deal can be a rush. Instead of asking your realtor to send you over comparable listings, you should drive by the property to make sure you are comfortable with the area and the neighborhood. Nothing will make your team more upset than wasted work. By doing most of the legwork yourself, you can call on your team only when they are really needed. They will appreciate the fact that you did not waste time in their day on tasks that won’t really lead to business.
The end goal of doing any work is to get paid. Most of your team members will get paid at the closing, but for everyone else, you should pay as promptly as you can. If your contractor has to wait weeks to get paid, you had better believe they will be far less motivated to work with you again in the future. Conversely, if you pay them right after the work is done you can ask to see a house on short notice or to rush a job in the future. This will also help you develop a reputation in the industry among their peers. If you burn one contractor, they will certainly tell someone else who – may post it on social media. Before you know it, you are someone to avoid. It sounds cliché, but if you treat your contractor how you would want to be treated you can be assured that they will want to work with you again in the future.
The heat of a deal can bring the intensity out of even the most timid investors. Odds are that at some point you will lose a deal that you have spent some time on. If this happens, you should take a step back and look at the big picture. Refrain from pointing any fingers. If you don’t close, your team members don’t make any money either. It is highly doubtful that they dropped the ball on purpose. They probably feel worse than anyone. Instead of calling and screaming at them, show some degree of compassion. Anyone can make a mistake, but if you feel like this was just an oversight and won’t happen again, it can be the catalyst for a long, productive relationship. Anyone can scream and yell when things go wrong, but if you take a different approach you may benefit greatly for it.
Nobody on your team should feel like they can’t reach out to you, or vice versa, at any time. If your team isn’t comfortable with you, they will be scared to make mistakes. Production will be greatly hampered. The mindset of the team around you can make or break your business.