วันพุธที่ 26 มิถุนายน พ.ศ. 2562

Three Rules to Adding People to Your Real Estate Investing Team

Your money team contributes to your money dreams. Therefore, the selection of these members to your team is crucial. Chosing a bad apple can ฝากขายบ้าน leave a sour taste in your mouth which can take dollars out of your pocket or motivate you to quit.

I have been burned before. I hired a contractor to do a hardmoney flip and I ended up paying him for jobs that weren't completed. He took advantage of the fact that I was out of state, didn't inspect it frequently, didn't request pictures of the completed work, and provided him with payment before the job was completed. I cannot blame no one else for this mistake but myself. Good thing that came out of this experience is that I was able to gather the lessons learned so I can freely share it with you.

With every new member you are adding to your team, such as a contractor, broker, property manager, etc, you have to implement the rule of three. This is what I should of done when I needed a contractor for a hard money flip I was doing: 1. Get three contractors to look at the job. 2. Have the three contractors give you 3 bids on the same job. 3. Get 3 references from each contractor who did a similar job and ask the references a. Did the contractor do a job similar to mine and how was the quality of the work? b. Did he do it on time and within budget? c. Would you recommend the contractor and use his services again?

Make sure you speak with 3 live persons for each contractor. You can go the extra effort by researching the person on your team on your favorite search engine as well as on angies list. If a contractor or any other person on your Money Team refuses to provide you with references for whatever reason, then tell them you cannot use them. There are plenty of other people out there who do not mind providing you with references, for if they provide good work, they'll get repeat business from people and those people wouldn't mind spending two minutes of their time telling you about the contractor. If you decide to go the cheap route and hire a contractor who is not licensed and without insurance on a hard money flip that needs extensive rehab, beware. You want to be smart here and go the legit route, for the unlicensed contractor may not be eligible to order a work permit on the property and if a city inspector happens to stop by your hard money flip unexpected, you could be in big trouble.

Now, going with the lowest bid or rate might not always be the best option. You have to weigh which is most important thing to you on a particular deal. What's really important is great references and online reviews, and making sure the person is qualified to do the job. You don't want to get burned like I did, so follow the advice from someone who's been there, done that.

This is a little off topic, but it's worth mentioning here: Do not think there's an absolute fool-proof system to real estate. Albert Einstein said a person who doesn't make mistakes is a person who doesn't try anything new. You may make mistakes and lose money, but if you follow a sound system, you will win more than you lose and find certain tricks that work best for your investment strategy based upon your market and your personal situation. Don't let mistakes or the loss of money dissuade you from moving forward. Get up, correct the errors in your plan, and try again.


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