5 Must Have Members of Your Real Estate Investment Team

5 Mar

Assemble Your Real Estate Investment Team

In this series we are learning How to Go From $0 to $10,000 a Month as a Real Estate Investor.

In the last post I gave you some incredible FREE TOOLS to help you evaluate deals including spreadsheets, word documents, valuation websites and more.  Today I want to share with you:

5 Must Have Members of Your Real Estate Investment Team

Finding great people to work with will make your life much easier and make you a whole lot  more money!  You don’t have to have all the pieces of the puzzle together before you start but you do want to get some key relationship started. When you have a smokin deal you’ll know exactly what to do with it.

Here’s a list of team members you’ll need, I will elaborate on each one and show you how to find them and what to say.

1. Realtor

2. Title Company

3. Investors/Buyers 

4. Hard Money Lender

5. Appraiser

Realtor

When picking a realtor be sure they’re accessible, you’ll need a quick response on getting comparable and listing info.  Remember they’ll get paid when you flip properties, so don’t be bashful when asking for help. Tell the prospective realtor you’re an investor with a team of buyers that are looking for good deals. Your job is to find properties, do the initial analysis and sell them to your investors. Be sure let the realtor know that you plan on doing several deals a month and they’re critical to your success.

Title Company

I would suggest contacting a large title company like Fidelity National Title; they have offices all over the country and provide a great service, we’ve used them on many occasions.  Once you have decided on a title company you’ll need to interview escrow officers and determine which one will cater to investors.  When calling the title company ask for an experienced escrow agent that does investor deals.  When speaking with the escrow agent specifically ask the them if they’ve ever done a double escrow, if the answer is yes you’re golden.  If not, ask if they can recommend an escrow agent that can do these types of transactions.

Investor/Buyers

Finding investors to flip properties to is crucial to your success, pretty much every city has fix and flip investors that are always looking for good deals.  There’re several places you can find investors that you can wholesale properties to.

1. Newspaper: Open your local news paper and look for classified ads that say “We Buy Houses All Cash” This use to be a great location to find investors but not may investors use classified ads today, but it’s worth a check.

2. Google: Type in Google Search “Sell House Fast” then add your state, you will see “paid ads” and “organic” website.  I like to check out the sites that are paid; they’re spending roughly $1.00 to $2.00 per click so they must be doing some business.  Check out the picture below:

 

Finding Real Estate Investors

Call several paid ads and ask them what their criteria for purchasing properties are. Find out what type of properties they like and prefer to buy.  Tell them you’re an investor looking to do a “double escrow” Find out exactly what loan to value that they’ll buy the houses at, they won’t want to tell you this but keep asking and they’ll finally give it up.  If they say 65% LTV (Loan to value) you know you can tie up houses at 50%-55% and flip them for a quick profit.  Also find out when is the fastest they can close a transaction.  Write this down because you will want to talk to 7–10 of these buyers and you can compare results.  Be sure you try other keyword searches to get some different results.

3. Investment Clubs: Search on Google again for local real estate investment clubs in your area, or you can check out this list HERE. Find a club near you and make an effort to attend and network with other investors, find out who the other wholesalers are and try to get on their mailing lists for the sole purpose of learning what deals are being done at what price.

4. Meet Up:  Go to Meetup.com and search for real estate investment groups in your local area, start attending the meetings and make friends with the investors. Ask a lot of questions, you will learn amazing things about the market you’re in and what’s going on.

You’re probably thinking why I’m not suggesting flipping the properties retail; well first off flipping retail is a different game.  The retail buyer will most likely be using conventional financing or FHA and there are seasoning issues associated with this type of flip.  I will do a post on a later date explaining exactly How to Flip to a Retail Buyer. 

Hard Money Lender

Here is a list of hard money lenders that Real Estate Radio USA provided, contact one of the lenders that is located in your area and asks them if they’ll provide funds for a double escrow, if so find out the terms.  Reasonable terms will be 2 points and 12%-18% with a 6 month balloon.  If you strike out on several calls, ask someone at the Meetup groups or Investment Clubs for a referral, this might be your best bet.  Also an investor friend named Jack out of NC told me of a company called Invisionary Financial Solutions that does funding especially for double escrow, I’ve never used them but their website and blog looks interesting.

Appraiser

In the real estate investment clubs and Meetup groups you’ll find appraisers that can help you determine value.  Ask them for a meeting so you can establish rapport, what you want is for them to give you a value range on your prospective properties.  Ask them how they value a property from an appraisers perspective.  Most appraisers will be willing to share how they do what they do.  You might want to agree to pay them a small fee per property they value.  Once you understand how the appraiser makes their decision you can do quick comps yourself.

Remember you don’t have to have all of these individuals and companies lined up prior to starting; they’ll naturally fall in place when finding and acquiring a deal. Just make a decision to start and the people will fall in place.

In the next part of the series we’re going to learn how to Establish a Game Plan.  Knowing what you want and how to get it will give you confidence to scale your business and create momentum which will enviably get you to your goal.  SUCCESS!

To follow along with this series make sure you subscribe to our RSS feed or bookmark and come back to this page where I’ll be linking to each new post as it is published on the blog.

If you have any questions please feel free to leave a comment below and Mike or I would be happy to help.

Happy Investing!

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10 Responses to “5 Must Have Members of Your Real Estate Investment Team”

  1. la jolla real estate listing 06. Mar, 2009 at 4:20 am #

    Wow that’s a nice and interesting post. I am a real estate investor and I am in search of some answers to real estate investing FAQ like where to invest and how to invest, etc. so that it will help to earn more income in life.Thank you for sharing.Creating a detailed goal plan is half the fun of beginning real estate investing.

  2. Loan Modification 06. Mar, 2009 at 7:42 am #

    That is very informative Thanks so much!

    Check out my blog if you ever get get the time…

    http://www.stopforeclosureshere.blogspot.com

  3. Sean Terry 06. Mar, 2009 at 10:47 am #

    @la jolla real estate listing, thanks for the comment.. I hope this site helps in your real estate investing career. If you have something you really would like to learn let me know and I can do a post on the subject.
    @Loan Modification, you have a nice clean site with some great information. Thanks for the comment!!!

  4. Jordan 10. Mar, 2009 at 10:18 am #

    Hey Sean, I have a question for you that might be off topic. Once I’ve decided to step out of the 4-unit property range, what’s the main difference that I’ll experience in pursuing a commercial loan as opposed to a personal loan that I would need for single family/duplexes/4-units? Furthermore, if I have this 5+ unit apartment in the name of my LLC, how would I switch over the loan to my LLC so that it’s not on my personal credit? I know this is a lot, but nobody seems to have an answer for me. Thanks!

  5. Sean Terry 10. Mar, 2009 at 1:11 pm #

    Hello Jordan, thanks for the comment. Regarding your question about obtaining a commercial loan, the major difference is that they are looking for more cash up front, I’ve seen 30%-40% down payments, also they want to see a net worth statement along with a resume showing experience in owning and managing the type of property in question. You will also need to submit a cash flow analysis on the property with a debt coverage ratio of about 1.5 or higher along with an appraisal which will run you $2,500 or higher. I have always put this info in a nice binder to submit to the bank so it looks professional. The bank board will vote on the loan request and give you an answer in 1-3 weeks. As for your 5 unit complex, there is 2 ways to get the loan off your personal credit and that’s to sell the property or refinance the loan with a non-recourse lender. You might want to try North American Savings Bank,. They do non-recourse for IRA’s and I believe they will do this type of loan. Ask for Jason Zook. Let me know if this answers your questions.
    Sean

  6. Jordan 10. Mar, 2009 at 3:16 pm #

    Sean, I can’t tell you how helpful your advice has been – EXTREMELY informative and insightful. Finally, somebody who knows what they’re talking about. I’m currently involved in other endeavors at the moment, but I look forward to buying my first Fortress property some time this summer. Thanks a bunch for your time!

  7. Sean Terry 10. Mar, 2009 at 3:48 pm #

    Thanks Jordan, let me know if I can help in any other way and best of luck on your other ventures, I’m sure they’ll be successful.
    Sean

  8. Oliver Darraugh 19. May, 2009 at 6:37 am #

    March saw that house prices increased for the first time since October 2007, however some are cautioning that investors should not be expect an immediate change in the market as lenders will be increasingly more cautious going forward. http://www.telegraph.co.uk/finance/personalfinance/investing/5119055/House-prices-Is-it-time-to-go-back-into-property.html

  9. calories in blueberries 03. Jun, 2011 at 5:36 am #

    Hey thanks a lot for that post! I really like your website, could you tell me where you got your template design? Are you using wordpress? Would be cool if you could contact me!

  10. Chris Block 21. Jul, 2011 at 4:14 pm #

    This is really great stuff keep up the great work!

    I am all about finding the “right” hard money lender that can provide POF for short sales and REO purchases, and is looking to finance a deal to 6 months instead of making me refi. I am in Minnesota and if you have a referal I will praise you forever to whoever I meet!!

    Doing residential SFR flips. It seems impossible to find anyone