“There is no such thing as a self-made man. You will reach your goals only with the help of others.” – George Shinn
Those are some very wise words from a famous entrepreneur, George Shinn. I 100% agree with him because nobody achieves success (whatever you deem success to be) without a group of people helping, either directly or indirectly. Whether it be mentors, people for spiritual support or business relationships, success is an accumulation of work and effort from more than one person despite what may be portrayed.
The same concept applies when you are an investor in real estate. You need a group of people around you that will support you because it is definitely not an easy journey. Plus, 97% of the people will think you’re crazy or tell you to be careful to not lose all of your money in the market. We’ve all been there in one way or another!
Building Pillars of Success – Mental and emotional support is one aspect, but there is also a strategic group of people that you need to surround yourself or connected with in order to be successful. This group of people, or what I call your “Power Team”, should consist of the following people:
- Investment Realtor
- Portfolio Planning Mortgage Broker
- Real Estate lawyer
- Real Estate Specific Tax Accountant
- Responsive Property Management
- Reliable Contractor
Depending on the strategy, I would say #4, #5 and #6 are somewhat optional, but you definitely need the first 3. In my real estate journey, I’ve come across really good professional contacts who I have personally used and if you are a client of mine, I’m always happy to share my million dollar Rolodex with you. Even if you are not a client, I may still share it if you ask nicely ;).
Words of Wisdom – Before I break down the importance of each professional listed above for you, there are two really good pieces of advice that I wish I knew when I got started in real estate investing:
- If the professional you’re working with isn’t working in the respective profession on a full time basis, then you will never be their priority. As a result, make sure you find a full time professional for each profession in your Power Team.
- Build relationship equity with your Power Team. When I find a deal, who do you think I will call first – the people I have a good relationship with or just a random stranger who gave me their business card that one time?
Now that you have that advice in mind, and without further adieu, here’s a break down of each profession and why each of these professionals plays an important part in determining your success.
Investment Realtor – This one is fairly obvious. If you’re working with me, I will be finding stellar investment opportunities and deals to help build your portfolio. A good investment Realtor should also understand the general processes of all the other professionals in this list, especially if you are trying to create a portfolio with multiple properties. Plus, a good investment Realtor should be your go-to person for everything else. Ultimately, you want to choose a Realtor who also invests and has their own Power Team. Oh, hello, that’s me!
Portfolio Planning Mortgage Broker – Many people overlook this profession, especially those who plan to own multiple properties. A good mortgage broker will know which bank to send you to first because they want to plan accordingly for your next property, not just the current one at hand. I can tell you that if your strategy is to buy and hold, then you definitely don’t want to go to TD first because they will collateralize your mortgage, which will affect your ability to buy properties in the future. So make sure you have a great mortgage broker.
Real Estate Lawyer – You need a real estate lawyer to transact but a good lawyer should also be able to help you with joint venture agreements and be available via phone without billing you every single time you need a quick chat with them. You won’t find lawyers who won’t bill you for their hours, but if you put in enough “relationship equity” and have that business relationship going, this could go very far in your investment path.
Real Estate Specific Tax Accountant – As your portfolio grows, you’ll very likely pay more taxes. Speaking to a tax accountant who specializes in real estate will set you up for success, so that you are making the most tax efficient decisions. Tax efficiency is key. A good tax accountant should save you money via tax efficiencies, so don’t cheap out!
Responsive Property Management – A responsive property management company will save you from all of the headaches you think you will or may have as a landlord. These are the people who give you peace of mind to enjoy your investments without worrying about tenant problems. Once you find a responsive management company, filling and managing tenants will become a breeze.
Reliable Contractor – If you need to go through renovations or have already gone through renovations, then you’ll understand how difficult it is to get a reliable contractor who shows up and will complete the task at hand and on time. This becomes especially critical if you are carrying your investment property, paying the mortgage, waiting for your property to be tenant-ready, but the contractor has delayed your project. A good, reliable contractor is worth every penny.
The Wrap – With all of that said, and despite the knowledge that someone may have, you ultimately need to choose someone who you can work with. Growing this Power Team is certainly not an overnight task. Realistically, this team will go through ebbs and flows before you arrive at your winning team. But success starts now and success starts here. Reach out to our team to start building your winning team today!