Learn How To Start Investing In Real Estate
Learn How To Start Investing In Real Estate

Building A Real Estate Wholesale Team (Part 2): The Foundation

Written by Than Merrill

Assuming you are considering the possibility of building a wholesale team, there are a number of factors you need to account for. While the presence of additional team members should ultimately contribute to your bottom line, you must prepare for their arrival accordingly. As a wholesaler, having a solid foundation is one of the key elements to sustaining business growth and developing a wholesale team that is conducive to your success. This includes having a good understanding as to why you need a team in the first place.

Knowing and understanding why you need a team will help you in your efforts. Subsequently, you will not know how to build the best possible team if you don’t even know why you need one. According to Brian Icenhower, a real estate trainer and coach, “Growing a real estate team is not easy. The lack of a firm grasp of ‘why’ you are heading down such an arduous path typically results in de-motivation and a team that ultimately does not benefit the lead agent.“

Growth lies not only in knowing your company inside and out, but also in utilizing systems and procedures to communicate acquired knowledge to your employees. Having the appropriate systems in place will ease the expansion process and allow you to build a truly incredible wholesale team.

If you have already made the decision to build your real estate wholesale team, then commit to the idea and acknowledge that you need a good foundation before you bring anyone aboard. If you can commit to proactively attempting to generate business on a systematic and continuous basis, over time it is realistic to assume that you will need the help of other people to continue lead generating in the future.

The Importance of Proven Systems

Business systems are the foundation of any successful real estate investing company. They serve as a method for analyzing, defining and designing the information architecture of an organization. Through proven systems, a company is able to duplicate success on a large scale. As such, a company with the right systems can take any employee to the next level, essentially increasing profit margins and mitigating risk.

With that being said, every company is advised to have a system or procedure in place for every aspect of their business. Painstakingly detailing even the most routine tasks will help the company run smoothly and provide a sound starting point for new hires.

The use of systems will allow any businessmen to further delineate the roles and job descriptions within a company. This will establish the proper foundation for future employees and foster an environment that focuses on the growth of both the company and the individual. Creating systems and clearly defining each employee’s role will:

  • Make the process of hiring easier and less time consuming.
  • Eliminate the need to train employees from scratch.
  • Give employees a better understanding of what is to be expected from them.
  • Provide new hires with a reference guide to consult when confronted with difficulties.

By now you should be aware of the importance of having systems in place before you begin building a wholesale team. The environment in which you bring an employee into must be conducive to their growth, as an organized approach will allow them to be more profitable in a shorter period of time. An employee who is well aware of their role will be brought up to speed faster and contribute more efficiently.

Prior to building a wholesale team, you must analyze each task involved in taking a deal from purchase to sale. Remember, you were preforming these tasks by yourself at one point, so you should be familiar with their requirements. As you start detailing responsibilities associated with the individual tasks, be sure to create a system that can be replicated. This is very important, as replication is the key to growth while building a wholesale team.

With the proper systems and team in place, completing a wholesale transaction will resemble a perfectly choreographed performance. Everything will happen in the right order, details won’t get overlooked, and money will get made.

Understanding Strengths & Weaknesses

In order for your company to grow, you must understand the intricacies associated with managing individuals. While this can be difficult, it is a skill every entrepreneur should become familiar with. Knowing how to properly manage your wholesale team can mean the difference between success and failure. Anything you can do to create a healthy work environment will ultimately benefit your business. If your wholesale team enjoys working with you, or more importantly, respects you, their loyalty and work ethic will shine through in even the toughest of times.

The same can be said about entrepreneurs who do not know how to manage. Neglecting the importance of a positive atmosphere can be particularly harmful to a business. Not only will turnover rates force you to play from behind, but unsatisfied employees will not put their best foot forward. Your negligence as a manager can ultimately hurt your bottom line.

It is equally important to understand where your personal strengths and weaknesses are. Knowing which areas to emphasize and those that require additional support will make you a well-rounded manager. This will play a large part in determining the members you select when building a wholesale team. For example, if you do not think you can effectively manage your employees, it is imperative that you find a team member that exhibits that particular quality. More importantly, factor these characteristics into the systems you create. If you know you are a procrastinator, you need to build that knowledge into your systems and make allowances for it so you aren’t the one causing a roadblock.

Creating A Company Culture

As a business owner, building a wholesale team is entirely dependent on you. This includes the individuals you hire, the systems they follow and how profitable you are as a whole. However, perhaps even more importantly, is the responsibility of establishing a company culture. The culture your company exhibits defines its beliefs, values and practices – each of which are critical to the growth and success of your business.

The establishment of an overwhelmingly positive company culture will assist in recruiting and maintaining employees that are productive and ultimately conducive to your bottom line. Therefore, creating a company culture that is accepted by every member of your team should be considered a top priority.

According to Icenhower, “The responsibility to instill a team environment that fosters regular and systematic communication falls squarely on the shoulders of the team’s lead agent. Effective communication doesn’t just happen; it must be purposefully initiated continuously. Therefore, it takes a true leader to create and maintain this successful environment and not simply dismiss the need to communicate for a lack of time.”