Hello everyone! This is Juan Carlos Gastelum. I’m a real estate investor in Texas. Today I want to relay the importance of teamwork when getting into real estate investing. Working with a team, you can get further ahead than working at it alone. When you’re working alone, there’s a sense of control, and a sense of multitasking and a sense of accomplishment by doing everything by yourself; but in reality, you’re only undermining the effectiveness and efficiency of your real estate investing. Building a team at the outset is of utmost importance and is key in a successful real estate investment practice. When I first got started in real estate investing, I did everything on my own, I sourced a condominium, I analyze the deal, I negotiated the price, I negotiated terms, and I also got myself into a whole lot of different problems. Just because I didn’t know many of the aspects of managing a property and dealing with tenants in a way that a professional property management company, for instance, can do. Today I recognize that building a team is a key element of becoming a successful real estate investor.
Now who you bring into your team is also a very important factor. First and foremost, you need to create an immediate core four. That would be your real estate broker or agent, your property management company or professional property manager, your accountant, and of course your lender.
The advantages of working with an experienced and knowledgeable real estate broker is key to finding and sourcing deals for you with the criteria that you have selected for your real estate investing. Particularly if you are investing long distance. A knowledgeable broker will know the area that you are looking into to invest and will definitely assist you in nailing down the options that there may be available either through the multiple listing service or off-market. If you don’t know an experienced, knowledgeable and trustworthy real estate broker, ask around. That’s why you need to network and work through meetups and your mastermind groups. Once you find a few of these recommended brokers or agents, talk to them and invite them over for coffee if you can, or talk to them over the phone or through a Zoom call. But make sure you ask questions to see if you are the right fit.
A reputable broker should not be going after the commission’s only, but should also respond to your financial goals. So make sure you’re clear with your broker about those financial goals and also the metrics; the type of financial indicators you’re trying to achieve, such as your internal rate of return on your investment, your cash on cash return, and your cap rate. All of those metrics should be discussed with your broker to make sure that you’re in sync with the same goals. Now the broker should also be part of the team that works throughout the entirety of the deal, not just in sourcing the deal. So our tip for today is: find a source agent and get to know an experienced, knowledgeable and reputable real estate broker to start building your real estate team. That’s all for now. Take care, best wishes on your real estate journey and God bless!
