In my twenty plus years of house flipping and real estate mentoring, I have learned a lot about first-time investors. All too often, we’ll see people decide to get into the business, and they’ll decide that they can save money by learning everything on their own online. They don’t sign up for any real estate coaching, and they try to skimp on building a team to help them with their flips. At this point in the game, they think of themselves as real estate pros when they really should be looking for mentors and thinking of themselves as real estate apprentices.
The thought process here is always the same. It goes something like, “If I can do it all myself, then I won’t have to pay anyone else. I’ll make so much more money!” Well, it’s just not true. If you’ve watched ever a single episode of Property Wars, you know that we have a really solid real estate team to help us with all of our flips.
And I’m a realtor that will buy houses Phoenix! Think about it this way. If real estate agents who’ve been in the business for years value the power of building a real estate team, then you really should, too. So, who do you need on your side when you start investing?
Who’s On Your Team?
At the very minimum, your real estate team should consist of a real estate agent, a real estate attorney, an accountant, and an insurance agent. Each of these people specializes in a specific part of the real estate investment process to get fast cash for homes, and each of them can mentor you in their area of expertise and help you make the right decisions for your investment.
Your Real Estate Agent
Choosing a real estate agent who’s experienced in house flipping is key. They’ll be able to help you find leads on properties, advise you on your purchases, and give you advice for staging and selling your properties once you’ve rehabbed them. They do charge a small percentage (usually about 5%) when you sell, but this is often more than worth it.
The Rest of Your Team
The rest of your team is just as important as your real estate agent to ensure that each deal goes as smoothly as possible. Of course when Murphy’s law kicks in (because it will), one of the most reassuring things you have is knowing you have a first-class group of professionals at your finger tips to help you through it. Your attorney will know the laws that pertain to your property and will help you greatly by simplifying paperwork and giving you a good understanding of the legal ramifications of your purchases, rehabs, and sales.
Having an accountant who specializes in real estate is essential, as well. They’ll help you streamline your taxes and stay in the IRS’ good graces without losing your shirt. And, of course, your insurance agent can ensure that you’re protected against a number of liabilities and/or damage to your property.
The Unspoken Team Member
Now, there’s one member of the team that every new investor should have but no one really talks about: your mentor or coach. While you can learn a lot about the different aspects of the business from each member of your real estate team, it helps a great deal to get some general real estate mentoring.
Frankly that’s why I started Winning The Property War. There just aren’t that many really high quality real estate coaching opportunities for new investors. So when you select a real estate coach or mentor – be discerning. Don’t just work with the first person you come across. Find out about how much actual activity they’re doing in real estate in today’s market. You want a coach with their finger on the pulse, who’s out there every day shaking trees and doing deals and who can teach what’s working now (not what worked 5 or 10 years ago when they did all their deals!)