When my retail coffee shop business failed, I knew that I needed to pick a direction to go from there. My choices were, (1) pursue the passion that I had acquired for real estate from my books, or (2) go find a 9 to 5. Well, since I wasn’t married, didn’t have children, didn’t have money, I decided that I didn’t have much to lose, so you guessed it, I went after my passion for real estate investing.

Upon doing some networking in my area, it turned out that one of my business relationship friends knew someone who was active in real estate investing. The problem was, he lived in Louisville, KY and I lived in Lexington, KY. I asked my friend to introduce me to this guy. Little did the investor guy know at the time, that I was a man on a mission and I was going to work for him whether he liked it or not.

With time, I professionally pursued the new relationship and became an “apprentice” if you will, to this investor. It really was a win-win relationship. I would drive an hour to Louisville every day to work for this guy, willing to do whatever it took to give me more knowledge about the business. Overall it was about a six month period where I wasn’t making a penny, but I was getting an invaluable education about how to make money as a real estate investor.

Eventually, the time came where I was either going to move to Louisville and work for this guy full time, or stay in Lexington and start my own real estate investing business based on the knowledge that I had acquired. At the time, it was the scariest thing that I ever did, but I decided to make a go of it on my own. I was extremely fortunate to have been able to experience the business from someone already in it. This mentor, mentee relationship was invaluable to helping me gain confidence and get started as a real estate investor. I wouldn’t wish for it any other way.

This method of learning was so beneficial to me in my early days that I have made it a personal commitment of mine to reciprocate and give back to other aspiring real estate investors looking to achieve great success in this business.

You must constantly invest in your education as a real estate investor if you want to achieve great success and longevity.

That said, businesses also don’t succeed on pure drive and determination, although it could be argued that these things are ultimately what helps keep businesses afloat through growing pains and other challenges. In short, your vision and courage are most admirable but they aren’t a substitute for properly educating yourself on the nuances of your business. In this case, you still need to be able to understand the numbers, prepare paperwork, evaluate market conditions, interact with people, negotiate effectively, and ultimately determine the profitability of the real estate deals you pursue.

The adage ‘Do your homework’ has multiple applications in the world of real estate investing. Sure, it can refer to proper evaluation of deals, adequate due diligence, or even timely reliance upon your professional team. I’ll discuss these things in future articles. In the here and the now, the idea of doing your homework also means getting yourself properly educated in the business and, if you haven’t done enough to this point, there’s never been a better time than now. Now, make a commitment to education and treat this part of the process just like you would any other aspect of your business and success will soon be at your doorstep.

As a real estate investor, it is imperative that you recognize and respect that your knowledge of the business makes you fairly unique. Most of your clients and many of your peers will not have the same knowledge as you and you need to be ready to properly explain things in so-called ‘layman’s terms’ or third grade English, so that you communicate effectively with everyone. Never assume, for example, that a client understands the foreclosure process in your area or that another investor speaks the language of real estate investing as you do. This approach will generally serve you well.

Here are four tips to help you communicate more clearly:

1. Ask probing questions that presume the client or peer knows what you are talking about. This way, you’ll avoid unnecessarily patronizing them if they are more knowledgeable.

2. Welcome feedback so, if a client or peer is not up to speed with what you are talking about, they’ll feel comfortable asking you questions.

3. Use analogies to explain concepts to draw parallels between real estate and things a client may be more familiar with.

4. Avoid terms that might confuse or scare away your client.

    For example, instead of saying Contract or Purchase and Sales Agreement, say, “this is the piece of paper that says you are selling the home and I am buying it.”

    Instead of saying this is the Deed, say, “this is the piece of paper which transfers ownership in the property from you to me.”

    Instead of asking a seller if they will Owner Finance for you, say, “Will you allow me to make payments to you for the house.”?

By following these tips, you’ll be more effective as a communicator. When you can effectively communicate your business, you will be seen as more convincing because part of effective communication is making sure the other party knows and understands what you are talking about.

Ability to Eyeball Properties

What I call ‘eyeballing properties’ is something of a two-headed skill set for the real estate investor. Part one of the skill is to be able to see potential where others may not. Have you ever driven past a property and found yourself making a judgment about whether it was occupied, or had income potential? This premature judgment of a property’s potential has likely cost hundreds of investors the chance to secure a great deal, and usually without them ever realizing it. Look at everything as having potential. This may seem pretty basic but it is a skill because most investors have to train themselves to look at properties this liberally. Trust me, do what you have to do, don’t prejudge, and you’ll enjoy more opportunities.

Part two of this skill set is to be able to quickly evaluate the condition of a particular property. Many new investors will downplay their ability to assess a property’s flaws (and necessary improvements) and this is not as hard as you might think. First, you should have a contractor on your team who can back you up during your due diligence period. Second, it’s not hard to take a trip to the hardware store and price out different things that you may need to do to renovate properties. Between these two things, you can quickly develop the skill to estimate repairs (even if it’s only a crude estimate) and this skill will give tremendous confidence.

Creativity in real estate is one of those unsung skills that can easily and effectively set you apart from your competition. Note that I’m not referring to creativity in the artistic or ‘left brain vs. right brain’ sense. Creativity in real estate means being willing, able, and committed to out of the box thinking, and bringing that philosophy to every aspect of your business. There are several primary areas of your business where this will benefit you.

First, you have marketing. Marketing is one of the easiest arenas in which you can express yourself creatively and it doesn’t just mean having the most unique appearance to your marketing message or media. It just means having a nice diversified approach to marketing your business and, by doing so, going the extra mile that your competition will not. Second, you have the actual approach to working with clients. Creativity here may mean nothing more than just being a good person and presenting yourself in a way your clients will not be accustomed to. Anything that sets you apart from other investors can be a form of creative expression, and such things will benefit you.

You want to have command of the fundamentals of real estate investing so you objectively are seen as competent. Beyond the basics, a creative or otherwise unique approach to your business will help to demonstrate that you aren’t afraid to march to the beat of your own drum and be comfortable doing so. Peers and clients alike will respect what makes you unique.

Ability to Negotiate

Negotiation is another one of the fundamental skills that all successful real estate investors possess. Why is it so important? The better question might be to ask why would it not be important? Negotiation is involved in establishing a professional team, interacting with clients, and getting your deals tied up and completed. It is an essential part of the business and, whether you educate yourself or get trained in it, or simply learn by getting out there and working deals, this is definitely something you need to work on because none of us are born negotiators.

My important fundamentals of negotiation that you should strive to command are:

• Educate yourself as to what all parties are trying to achieve.
• Ask good questions.
• Listen to what the other party has to say.
• Understand the needs of the other party.
• Have the courage to ask for what you want.
• Don’t always accept no for an answer.
• Be prepared to deal with opposition or objections to what you present.
• Learn to ask the same thing in different ways, multiple times.
• Be able to confidently justify your requests.
• Don’t make decisions based on desperation, impatience, or emotion.
• Be prepared to give if you receive, and vice versa.
• Have the wisdom to know when to walk away.

Focusing on these key areas does not have to be a monumental task. Just be committed to the fundamentals outlined above and remember that most anything is negotiable. Never just take things for granted and presume you have no opportunity to negotiate because few things are truly like that, either in life or in business. A mentor of mine said it best, “what comes out of your mouth goes into your bank account.” The worst thing that people can say to a request you make is no, and if that happens simply ask for something else, or ask it in a different way.

If you take away anything from this

article on negotiation let it be this,

you will never get what you don’t ask for.

Your commitment to being a good negotiator will be apparent to your clients and to your peers. Your goal is not necessarily to be seen as shrewd, but rather as someone who is always open to discussion and willing to find that ideal outcome that benefits everyone involved. This commitment becomes a part of your business philosophy.

It’s no surprise that certain skills will benefit you as an investor. That said, it does beg the question, ‘What are the skills necessary to be a successful real estate investor?’ You may have your own ideas on this and I have mine as well. Some of what I present will seem logical and some of it might also surprise you. The idea here is to both confirm some things you may already be aware of as well as enlighten you to additional skills to help you succeed.

For starters, let’s list what I see as the most common skills a real estate investor would need to have to be most successful. I’ll then elaborate on each in time so you see exactly where I’m coming from and why I think these things are important to your accomplishments. Investor skills include (in no particular order of importance):

• Ability to make decisions quickly (take action)
• Creativity
• Ability to negotiate
• Ability to explain complex processes in a clear and understandable fashion
• Ability to eyeball the physical characteristics of a property and use that to determine improvement costs
• Ability to analyze the potential for a particular real estate deal
• Ability to understand exit strategies
• Ability to keep one’s emotions out of a business decision
• Ability to minimize personal risk
• Ability to always do business with integrity (add paragraph about this)

Before I get into the details of these specific skills, I want to point out (as you may have already noticed from the list above) that I did not include things like detailed market knowledge or being handy as essential investor skills. Many investors falsely presume they need to have such skills to be successful in this business and I just don’t agree with that. The skills I just mentioned are useful but also those that can be delegated to your professional team and thus not critical for your success. With that said, let’s look more closely at the skills I do see as more important.

Ability to Make Decisions Quickly

Quick decision-making and the ability to take action is one of the hallmark skills of a successful real estate investor. Note I’m not suggesting in any way that decisions be rash or careless. What I’m referring to instead is the efficiency and timeliness in which decisions get made. The more knowledgeable you are, coupled with ever increasing levels of experience, the easier it will become to make quick decisions. There are several reasons why this is such a valuable skill.

First, quick decision making puts you in line to capitalize on those great deals that you are exposed to in the course of running your business. Slow decisions and too much analysis lead to great deals being lost and I don’t want to see this happen to you. Too many real estate investors, especially beginners get what is called “paralysis of analysis.” They get stuck analyzing the numbers over and over, and the neighborhood, and the situation, etc only to find out that they’ve analyzed themselves right out of the deal usually before they’ve even made an offer or gotten a property under contract. This is not the way successful investors do business. If this sounds like you then break this habit immediately. Get a property under contract and then do your due diligence, not the other way around.

Then after you’ve done all your due diligence ask yourself, “What’s the worst that can happen?” If you can correct the worst from happening before you close on a property then do it. If you can’t, but still want to proceed, just make sure that your decision won’t keep you awake at night. If it won’t then you should probably do the deal. If it will, then you should probably walk away. Keep in mind that the goal of this discussion is about being efficient with your decisions. It will only happen a couple of times before you really start seeing the value of this skill. Remember, I’m primarily talking about making offers here. You can make a quick decision and still have time for due diligence so don’t think of this as opening you up to greater risk because that isn’t the case.

Second, quick decisions give you valuable experience in thinking on the fly and getting into the habit of acting and responding as if your income depended on it. This will not only benefit your business, but also give you valuable confidence that you can keep up with the pros out there and that you are more than just a newbie. Most people get a feeling about something and then analyze this feeling and then act. I’ve trained my mind to do the opposite. I prefer to make a decision and then deal with the feelings and repercussions of my actions after the fact. Have I made mistakes based on this method of thinking? Absolutely. However my successes have always greatly outweighed my mistakes, and therefore I have no doubt that this learned skill has greatly attributed to the achievements of my business.

Lastly, one of the greatest benefits of quick decision-making is the boost it will give to your authority. Clients and peers alike will respect your ability to think and act quickly and will establish you as a force to be reckoned with.

Real estate is a people business, but will ultimately always come down to the numbers. For the new investor, and especially one who doesn’t think much of their math skills, this can be a daunting proposition. I remember thinking this way a long time ago and, for every investor, overcoming this obstacle is both essential and unique in how you get the job done. For some, simple repetition and doing numbers time and time again is what helps the process sink in. For others, use of simple formulas for different situations is a path to success in number crunching. However you see this part of the business playing out for you, make the commitment to get comfortable with running numbers because your business depends on it.

All that said, I have a few tips and suggestions that I think will help you become more comfortable with this part of the business. First, don’t over-complicate it. Too many investors crunch numbers with the perpetual fear that they are missing something important. Remember my discussion on “paralysis of analysis?” If this is holding you back, estimate costs conservatively and evaluate deals under ‘worst case scenario’ conditions. That way, you’ll feel more comfortable with what you come up with and you’ll be able to proceed more confidently. Another way to feel more confident with number crunching is to realize that you only need to run a crude set of numbers before making offers on properties. You have plenty of due diligence time after a contract is signed to check your calculations and make adjustments as necessary so don’t feel like you have to be right on the mark from Day One.

Additionally, only go after the low hanging fruit. For example, if you went to pick an apple to eat from a tree you wouldn’t climb the tree and pick the apple at the top. Rather, you would pick the apple closest to your reach. Same thing holds true for real estate deals. I would much rather you weed through a hundred non-deals to find the good deal rather than trying to stretch a non-deal into a deal. Being willing to walk away is just as important as being able to take action. Lastly, always set yourself up to make good money with bad numbers. Murphy lives everywhere, and if something bad can happen it very likely will happen. This is not a big deal, just prepare for it in the beginning.

If you attempt a deal where the numbers must align perfectly then this is a deal you should walk away from. Always have a comfortable cushion so that you can make good money with bad numbers. Don’t stress my friends, you’ll develop these skills as you continue to learn and grow, and remember that your ability to do this will produce more profitability for your operation.

Previously,  I've discussed the passion of the real estate investor and the difference between passion and simple interest. (If you missed this article, browse through my previous website posts and take the time to read it now!)  True passion pushes you to dive deeper and go after results and to not be satisfied until you’ve achieved the goals you set.

On the flip side of true passion, is passion that is misguided. Make no mistake about it, passion for a business and what you are doing is different than passion for making money. I’ve heard many an investor who stated that money was their passion and that was why they loved this business. That is, in my opinion, a recipe for failure in the long run. If you truly love what you do and the foundational elements of your business, the money part will take care of itself. Falling in love with the outcome takes your focus away from the important things you need to be doing to get there and, at some point, can and will be apparent to those around you. In short, true passion for your business is seen as exactly what it is and will generally be admired by those who witness it. Passion for the outcome (in this case, making money) is often seen as something more sinister, something called greed. Be careful about what your passion is based upon because others will see it and may judge you accordingly.

Now, I’m going to throw a little curveball at you. I’ve talked about the elements of what it means to be passionate and how this can apply favorably to your pursuits as a real estate investor. Now, I’m going to put the brakes on just a bit and encourage you to be cautious about it. Say what?! Let me explain.

Passion, for all its benefits, can backfire if it disrupts the balance of what may be an otherwise healthy lifestyle. Sports passion can be great in some regards but ask the wives or significant others of avid sports fans and see what their take is on that same passion. Ask the same person what they think of their spouse or partner burning the midnight oil on work related stuff and never having time for the family. Ask that same person how much they enjoy their partner talking about nothing but business, no matter how excited they are about it. I think you see where I’m going with this. No business is worth alienating those close to you or putting your marriage at risk. Sure, there will be busy times with your business. Just make an effort to keep it real and your friends and families will appreciate you even more for that than for your passion.

Know that passion can and will serve you well in many areas of your life, including your pursuits of real estate investments. Your team will appreciate your passion and so too will your clients. The passion is, in part, what helps establish your credibility and makes people excited about working with you. That said, you need to have a life too. There’s nothing wrong with working hard and loving what you do. It’s sometimes hard, though, to flip off that switch and get out of “business mode” when it is appropriate to do so. For each of you, finding that balance between business and your personal life will be a little bit different and there’s no magic formula for how to do it. I just encourage you to strive for balance and, by doing so, you can indeed have your cake and eat it too.

Category 3: The Perpetual Wall Streeter

This REIA meeting classic is almost always someone you’ll see in groups of investors. No matter how casual the setting, there’s always some guy (no intentional gender bias here but the person in question is usually a man) who shows up in a pressed suit, tie, and the cufflinks to match. This choice of apparel is great if there’s an unscheduled board meeting but this is an investor meeting so let’s keep it real. I’ve seen persons dressed like this at REIA meetings and, admittedly, my first thought is ‘OK, at what point are they going to stand up and try to sell something?’ Maybe I’m incorrect in thinking that, but first impressions are what they are.

Here’s my recommendation. Keep the suit and tie for when you really need it. Neither other investors nor your clients are really going to expect that you dress that formally and it’s going to look funny more so than it will impress people. That hits on a good point. The perpetual Wall Streeter is most likely donning Armani to try and impress his peers, rather than for any other purpose. Nice attire is fine but it shouldn’t be what draws attention to you. Ultimately, what you say and do is most important and that should be the focus of those around you, rather than what you are wearing.

Category 4: The Focused Entrepreneur

Of all the categories I’ve described, this is perhaps the one you most want to aspire to become, should you decide that a subtle wardrobe shift or change of look is warranted. The entrepreneur is out there for one purpose and that is to do deals. They also carry a fierce independent spirit, and have disdain for what is status quo. Appearance wise, the entrepreneur may feature a modest amount of so-called ‘bling’, maybe wearing a nice watch but not overdoing it by any stretch. He or she is likely (by the numbers) an expatriated member of corporate America and probably shows their independence by a strict avoidance of suits and ties.

In short, the phrase ‘casual but nice’ will often apply to the appearance of the entrepreneur type. Nice pants or jeans, some type of shirt with a collar, quality shoes, you get the idea. The entrepreneur exudes a casual confidence by dressing the part. They know that it is not their formal attire, but rather their dedicated approach to doing business, that will attract people to them and they are right. Entrepreneurism is about a certain spirit and it is tangible enough where many people will notice. When you see this type of individual, give them a card and have a conversation with them. These are often the real movers and shakers out there and are usually good people to know. Their influence still has to be proven, as with anybody, but the way they generally carry themselves is a good start.

Beyond the basic categories, I want to discuss a few things further regarding your appearance that will be of immense help to you as you attempt to establish and grow your business. No one type of attire is perfect for all situations. If you know a client is a banker who is meeting you on their lunch break, you don’t necessarily have to put on a suit but make an effort to dress the part a little bit and appear a little more professional. That’s what they will be used to seeing and most likely will be expecting.

On the flip side, if you are meeting a client who lives in the country, a more casual approach is probably advisable. Show up in a suit in this situation and the client may think you’re there to sell encyclopedias. The bottom line is this, when you match a client in terms of your appearance, they will see themselves as being more like you. This establishes a silent level of rapport and can go a long way towards your success.

An accessory you don’t need in ANY meeting: cell phones

We all have cell phones these days so while it’s not unusual to be seen carrying one, leave it out of sight and don’t you dare answer it during a meeting. If you do you could be seen as unprofessional and disrespectful. Oh, and in regards to those blue tooth things for your ear, don’t wear it during a meeting or anytime you are not on a call for that matter. They don’t make you look important, they make you look silly!

What the pundits say about first impressions is dead on correct when it comes to your success as a real estate investor. Never forget that the investing community has had some bad press in the past few years and the public’s perception of real estate investors may be, at the very least, a little skeptical. Sure, the message you deliver is ultimately the most important thing and can be what helps validates your authority. That said, how you present yourself, appearance wise, can set the tone (good or bad) for an interaction with a client and can either make your job much easier or much more difficult.

Personally, I prefer for things to be as easy as possible and let others make the business more complicated than it actually is. How you dress and when you show up is a simple and yet critical part of how you communicate who you are to a client and that is an important part of your professionalism. I’m not suggesting that any of you go out there and change your wardrobe, just for the sake of your business. Simply strive to convey an image of confidence, success, and experience. This in turn should instill confidence in the client of your ability to get the job done. Therefore, “business casual” should suffice in all situations. Just be mindful of the importance of your appearance and you’ll already be a step ahead of the game.

I would like to have a little bit of fun with this subject, but don’t get me wrong here, the issue of your appearance is something you want to care about. The reason is that, in all my years as an investor, I’ve seen some very interesting approaches to this. With all of the different backgrounds you may have experienced before real estate, it’s a great chance to set the record straight on how I believe a real estate investor should present himself or herself, appearance wise.

First and foremost you need to know that there is no meeting where appearance is more important than your first impression with someone. The old saying, “you shouldn’t judge a book by its cover” doesn’t really matter too much these days because that’s exactly what people do, and I am just as guilty as you are. Therefore, however you decide to dress on a regular basis is up to you, just make sure that your first impression with someone whom you plan to do business is one that will promote future business rather than discourage it.

For starters, let’s discuss the four main categories of a real estate investor that you can identify by their appearance. Trust me, go to most any REIA meeting and you will see what I am talking about here. I’m not intending undue criticism to any of you if you read what is to follow, look in the mirror, and say ‘Hey, he just described me. What gives?’ I’m just compiling years of observation into a general guideline so go along with me on this and enjoy. I’ll list my categories and then elaborate just a little bit on each.

Category 1: The Shameless Pro

Category 2: The Average Joe

Category 3: The Perpetual Wall Streeter

Category 4: The Focused Entrepreneur

Again, there’s no right or wrong here. My opinions are just that and let’s just call it a combination of experience and an author’s prerogative. Today, I’ll highlight the shameless pro and the average Joe.

Category 1: The Shameless Pro

I refer to this type of individual in a little bit of a sarcastic sense because the so-called shameless pro just never knows when they are off the job site and in a more professional setting. You’ve probably seen the type of individual(s) I’m talking about. Your local REIA holds a meeting and a few guys show up, looking like they just finished a full day of hanging drywall. What’s the tendency here? It’s not a ‘Hey honey, look at those guys’, stick your nose up in the air kind of response. Rather, it’s a tendency to want to give them your card to see if they want more work. This is fine if they are contractors looking to drum up business. It is another if they are fellow investors because they don’t exactly look the part.

There’s absolutely nothing wrong with being handy or getting your hands dirty on the job site for some of your deals. That said, when it comes to meeting with clients or with team members, you also don’t want to appear like you just left the job site to go to the meeting. Not only does it suggest you have a bit much on your plate, but it also does not present an overall professional image. Clients want to see that you know how to handle their situation, rather than be the person an investor would hire to fix up their properties for them. To each their own, but remember you never get a second chance to make a first impression, and I suggest you make the most of that opportunity.

Category 2: The Average Joe

The Average Joe, often accompanied by Average Jane, is one of the most common looks you’ll see at meetings of investors. There’s nothing specifically wrong with this approach and it’s probably not something that’s given a whole lot of thought by people around them. Therein lies my point. The Average Joe does a fabulous job of blending in with the crowd and is probably a decent enough person to interact with to boot. They are also entirely unmemorable, especially if they are quiet and don’t say much.

A big part of the networking game is to stand out to people and be positively memorable. Whether it’s attire or, more importantly, what you say and do, you want people to remember who you are. The Average Joe, because of their tendency to blend in with their surroundings, must work extra hard to network and have people remember who they are. Their ability to blend is by and large a virtue of their casual dress and many investors who fit this category are also newbies. They may wish to blend in because they are new and are nervous about having to interact with people in a profession they don’t know much about yet. As long as they are able to eventually come out of their shells and be more noticeable, this is an OK way to start.

On the flipside, the nondescript nature of the Average Joe makes it easy for them to fit in and interact with clients. What they may lack in knowledge (for the less experienced investor), they make up for with natural rapport and they tend to be able to put clients at ease much easier than either the Wall Streeter or even the Entrepreneur. Basically, they’re just being themselves and, as long as they can convey the message at hand, this look is actually a pretty good recipe for success.

Wednesday, I’ll discuss the other two types of investors. In the meantime, check out the Incredible Free Gift that any investor can use to take business to the next level. Go to:

www.freemakemoneygift.com/Invitation/html

Team Member 12- Hard Money Lender

A hard money lender is a type of financier who specializes in properties that traditional lenders would often avoid, usually due to the condition of the property. The presence of a hard money lender on your team validates you as a serious player in your market because it allows you to pursue deals that other investors might walk away from and therefore allows you to reach more potential clients. In addition to allowing you to produce more revenue for your business, hard money lenders also help refine your evaluation of potential deals. These financiers will only fund a certain percentage of the property’s value so it also helps establish you as a better negotiator.

Team Member 13- Private Mortgage Lenders

This Team member is a big difference from the Hard Money Lender described above. Maybe you’re one of the fortunate few who has plenty of your own capital to invest in your own business but many investors (including myself when I got started) are lacking in this area and need to work to raise capital as part of their business development. Private mortgage lenders are vital to credibility for two key reasons.

First, if you can sell the concept of your investments and your business model to those who might provide you with funding, you can certainly sell it to your clients. Pursuit of private money gets you thinking differently about the upsides of your business and this will make you more effective as both a salesperson and as a negotiator. Second, the ability to immediately produce capital to fund a particular deal gives you tremendous leverage, and this value cannot be overstated.

Team Component 14- Assistant (Live or Virtual)

When businesses get busy, some sort of day-to-day help is inevitable and the process of bringing on an assistant can be critical to the business’s ongoing success. When you think about it, this is all about maximizing the time you can spend earning. Let’s discuss both factors. First, there’s the basic element of business productivity. You can only do so much yourself, and if the need to hire an assistant becomes real for you, then it probably is an indicator that things are going well enough to justify doing so. Believe me, you’ll thank yourself in the end for doing it. There are various kinds of help you can utilize. There is of course the person who comes to the office and helps with phone calls, filing, and knocking out things on the so-called ‘to do list’. There are also virtual assistants, who handle things from afar and can be great for taking incoming calls, responding to emails, monitoring web activity, etc.

At some point, your time will become too valuable to be doing the things an assistant can help with and having a perceived ‘staff’ will also bring valuable respect to your business by offering the appearance of a larger organization than may actually be the case. You don’t have to create the image; people will perceive what they will and, if that gives you a boost, so be it. My suggestion is to look at this team member as a time saver and revenue builder first and foremost. If and when you do take the leap to bring on additional help, you’ll wonder how you ever got by without it.

Team Component 15- Support Network

Your support network is your friends and family who support what it is you are doing as an investor. They are also professional colleagues who are following similar paths to success and who equally appreciate the challenges and hurdles encountered along the way. It is vital to have some sort of support network and also important to recognize that it may not be principally composed of those closest to you. I’ve met many an investor who have told me that unfortunately those closest to them are the ones that challenge or question why they were pursuing real estate. In the absence of a good professional support network, this kind of input can be, at a minimum, demoralizing and, in more extreme cases, prone to drive otherwise motivated investors right out of the business.

The importance of a support network is not just to get pumped up and stay motivated. You should be able to fuel your own fire, at least to a certain extent, because that is just a part of being in business for yourself. Consider this, professional athletes make the big bucks because they are the best at what they do and because they are self motivated people. You need to strive to be the same way. That said, recognizing that external support is important is a critical part of being successful in business, you must get that support wherever you can find it. Maybe it is on the home front and, if so, then you’re fortunate to have it. Maybe it’s from a professional mentor, someone who chooses to take you under their wing to help you grow in your own business pursuits. Maybe it’s a mastermind group of like-minded businesspeople who meet with some regularity to challenge each other and help fuel each member’s own success.

Your team is important to the long-term success of your business. If you don’t already, you should view yourself not as a CEO, but rather a CLO, Chief Leverage Officer. Your professional team is depending on you to leverage their skills, which in turn creates a win-win relationship. First, a team expands your effective level of experience. Many investors find that a lack of experience is a drawback, especially when a client asks ‘How long have you been doing this?’ With a solid professional team, you as an investor can cite that your ‘team’ has _____ years of experience and boost your own credibility without having to emphasize your own lack of experience.

Second, a professional team establishes an overall level of reliability by demonstrating that you have ready to go resources available to you. It adds a definite level of professionalism to suggest that paperwork will be reviewed by an attorney, properties will be managed by a company dedicated to doing so, and that closings will be handled and managed by a licensed title company or closing attorney. Clients love the feeling that the situation is handled at all phases and I feel it looks better to have team members involved, rather than presenting yourself as a one stop shop.

Like it or not, your clients (buyers or sellers) are your customers and they need to have trust in what you do and must want to do business with you. An investor who is able to delegate many parts of the purchase and sales process to their team has the time to do what they do best, which is to focus on the human side of the real estate business. Trust me, your clients will notice this level of attention to their needs, will see it as a validation of your reputation, and this will translate into more deals and more consistency for your business.

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Team Member 9- Financial Planner

Now that you are in business or are at least considering it, do you think it will change your financial outlook? You certainly hope that it will and it behooves you to be prepared for the changes that are coming. A good financial planner is just an essential part of modern money management and you may want to have such a professional behind the scenes to help streamline and optimize your financial growth. Are financial planners critical to negotiating deals on properties? No. Are they critical to you feeling comfortable that you are operating within a defined plan that actually has a chart and a course? Absolutely. When you have confidence in the big picture of what your business is doing, you will be more confident and that will show in how you handle yourself and as you meet new people.

As a spin off to this topic, you may also want to look into adding a self directed Roth IRA into your plan for retirement. Imagine buying and selling a property and the proceeds from that sale going directly into your self directed Roth IRA, which means you’ll never have to pay tax on that money (when you follow the rules). This may sound too good to be true, but trust me it’s not. If you haven’t already, you should look into setting up a traditional Roth IRA now while the government still allows you to and then converting it to a self directed Roth IRA down the road when you are ready. A qualified financial planner who has experience in self directed Roth IRA’s should be able to help you with this, but do your own due diligence as well.

Team Member 10- Property Inspector

A dedicated property inspector is not necessarily one of the foundational team members you will need for your real estate business but is important all the same, especially as you start purchasing properties that you intend to keep for a while in order to produce monthly income. The presence of an inspector on your team helps you both avoid problem properties (aka the money pits out there) and also demonstrates to others that you are serious about your purchases and are ready to perform all necessary due diligence before ever completing a transaction.

The best way to find a good inspector is through a referral. Try to find an inspector that can also provide you with, or knows someone that can provide you with a certified termite inspection and a mold inspection. These two little hidden demons can cause you serious problems down the road if you don’t take the appropriate precautions up front. Take it from me, I have the scars to prove it.

Team Member 11- Property Management Company

I learned a long time ago that property management is not a profession for the weak. Maybe many of you are very compassionate people at heart or tend to generally trust people you meet. These are redeeming qualities but will make you a poor property manager. Managing tenants may not seem to be that big of a deal but, if you believe this, you’ve likely never had to coordinate a difficult eviction or deal with a ‘professional’ tenant who likes nothing better than living rent free. In short, if you’re serious about owning rental property, I believe property management is an essential part of your professional team. Pay someone else to deal with these problems while you utilize your time to invest in more deals.

Personally, I don’t do straight rentals, but rather lease options or seller financing because I want my tenants to feel like homeowners. I want them having the feeling of home ownership in the property and maintaining or fixing up the place rather than trashing it. I find that if they have a vested interest in the home it results in fewer problems. When problems do arise, the existence of property management in your world of real estate investing will save you countless hours, reduce stress, and also boost your credibility by showing the world that you are running a business like a business and, in doing so, that you recognize your own limitations. Forget the investors you talk to who insist that managing your own properties is the only way to go. Most I’ve met who feel this way look like the business has aged them 15 years and I don’t think it’s just a coincidence. Sometimes the best thing you can do is to admit you need help with something and this is a great example of that point.

In my next post, I will discuss the last members of your real estate support team. I appreciate the comments that are shared about any of my articles and encourage you to continue sharing your thoughts. If you haven’t already, be sure to check out some of the material I am giving away for only shipping and handling costs.

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