Building an Effective Team For Property Investing

Scalable Property Investing

In my last article Building an Investment Property Foundation, I discussed the importance of analysising cashflow and capital requirements and how to build a solid foundation before moving into growth areas. This article will discuss using scalable approaches to investing in property.

Prioritisation of Time

Many investors who are emotionally attached to opportunities will end up completing renovations or managing properties on their own in order to realise a profit on their investment. The investor who is able to detach themselves from the purchase emotionally will have a higher chance of success in purchasing properties with enough profits to outsource the work.

Although more money is saved and expenses are lowered when the work is completed by the investor, the approach is not scalable and hinders the growth rate of the investment property portfolio. Even in early stages of research much of the work can be outsourced as long as the right team is created.

An Effective Team

An effective team is one that is autonomous and is able to be accountable to deliver on time and add value to the investment transaction. It takes time to interview the right team, but having a great time provides a scalable approach to acquiring, renovating, disposing of property quickly while protecting profits. The team provides expertise in all the areas required to be successful in property investing. This includes the following roles:

1) Buyer’s Real Estate Agent

2) Property Conveyance Lawyer

3) Home Inspector

4) Property Manager

5) General Contractor

6) Bank Account Manager / Mortgage Broker

7) Appraiser / Property Valuer

Each member of the team will be able to advise you on timesaving techniques to employ to avoid realising risks and encountering major issues along the transactions.

Often investors may think that they should own all the tasks in order to save money, but from my experience these experts have knowledge and can apply their knowledge to an investor’s situation effectively. The experts save an investor time and money from researching all the topics individually.

Sourcing the right team members

After acknowledging that a team is required it is time to fill each role. These roles are common and can be filled by a long list of candidates. Filling the role is not the only concern but filling the role with the appropriate person for the job. It is effective to source local knowledge which includes finding agents, inspectors, etc who work in the local area with local expertise to advise the investor on the appropriate courses of action.

The process can be arduous and often the most efficient way to source the right people is to network with other successful investors to leverage their network for the right team members. Sourcing a candidate is the first step towards building the team. Once the candidates are source, the investor will need to interview each one of the potential candidates and ensure a good fit.

By Robert Holiday