Bread & Butter Properties

Bread & Butter Properties
Generate passive rental income

Wednesday, July 28, 2010

Setting Up Your Dream Team

I recently read quite a funny quote: "there is no I in TEAM, only, M and E and that spells ME". well, that's not quite true when it comes to getting results in your property investing. I know it sounds cliché but, you can't do it alone. You really do need a team, and preferably a good one. This is certainly true in my case; as I am working full-time, have a family, and other commitments, it is certainly hard to find time to look for property, arrange the financing, and renting them out. So, I rely on key individuals to help me.

I think the main advantage of having a team of people helping you is that it can leverage your time. In property investing, the key people in your team should be:
·        Real estate agents,
·        Valuers,
·        Bankers,
·        Lawyers,
·        Accountant cum tax advisor, and
·        Handyman.

You will have to go through a few people in each of the category of profession needed before you end up with the right people. It can be a frustrating process, having to deal with the "wrong" people initially, but certainly worthwhile when you find those that can really help you. And, once you find them, be prepared to pay for their services.  I always believe that if you take care of them, they will in turn, take care of your interest, most of the time anyway.

Who are the right people?
The right kind of people are those that you enjoy dealing with. I think that this is paramount. You will be working closely together and there is no greater pain than having to deal with someone you don't like. It's not a job, and you have a choice of who you want to work (and who not to!). So, select the right ones, and create a "win-win" situation, where both parties gain from working together.

Generally, the following qualities are important, whether it's the real estate agent or the lawyers I work with:
  • Has integrity: there is no compromise on this, as most of the dealings involve money,
  • Reliable: "does what he says he will do",
  • Has the necessary skills and knowledge: especially when it comes to legal matters, like S&P agreements, loan agreements, land matters and others. (Find a good lawyer who knows what they are doing),
  • Goes the extra mile: this is a bonus. My real estate agent doubles up as my rental agent, and he does small maintenance work for me, which saves me a lot of time (and hassle).
 These are some key points when it comes to setting up your dream team. Remember the main idea is to leverage your time. You can only be at one place, at one time. But having a small army of people like real estate agents will help to multiple your efforts, and get you better results.

Next: we discuss how to pick the "right" real estate agents, lawyers, etc.

Chris Gan

No comments: