How to Build a Real Estate Investing Power Team

How to Build a Real Estate Investing Power Team

 by: Adem Hamidovic

As you continue to read about real estate investing, you will no doubt come across the term ‘power team’. What is this ‘power team’? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible. Included in a power team are at least one real estate agent, a mortgage broker, and a real estate lawyer, all of whom will have experience in creative real estate investing.

So, how do you go about building this team? Well, you could just get a copy of the Yellow Pages and start calling, but that will most likely take a very long time, time that could be better spent working on real estate deals! Wouldn’t it be better to have these people call you? I thought so, so here’s what I did. Keep in mind that this technique not only netted me a power team, but also a list of potential partners/buyers for future deals.

The local paper offers a deal on weekend real estate listings, so I placed an advertisement in the paper that read:

“Fixer-upper for sale. Cheap. Need cash and quick closing. 555-5555″

What sort of people would respond to an ad like this? Some will be tire-kickers and the curious, but a good number of callers will be investors and real estate agents. I had the number in the paper forwarded to a voicemail service, and it’s a good thing I did as there were a lot of calls! I find that those who are just curious about the ad tend to hang up without leaving a message, so that takes care of those that aren’t serious.

After listening to the messages I found that there were two real estate agents that had answered. I called the first one, George, and told him that the home had sold, but would he be interested in working with fixer-uppers in the future? He replied that he would, but didn’t seem interested in discussing it much further. Now, I should mention here that I never actually had a home to sell - what I posted is called a ‘ghost ad’, used to guage interest in something. You may not feel entirely comfortable with this, and that’s fine. Simply post a different ad that gets the same sort of message across.

The next agent, Elizabeth, was much more receptive. We spoke for well over an hour about her experiences in real estate - it turns out that she actively invests in real estate herself. She would be more than happy to search the mls on my behalf, as well as submit as many offers as I would send her way. Perfect!

And here’s the best part: since I had found a real estate agent who also invests, I was also able to use the resources that she uses in her deals. So I now had access to a great real estate lawyer as well as a mortgage broker, along with a recommended property inspector. That saved me loads of work and time. My power team was now complete!

I’ve since become good friends with Elizabeth, and she regularly sends me listings that haven’t made it to the mls yet. This gives me a huge advantage in pursuing deals as only a relatively small number of people are aware of the sale. I picked up my latest rental property this way - the property was going to be listed on the mls in two days time, but since Elizabeth let me in on the deal early I was able to close before the general public became aware.

A good power team is crucial to your success as a real estate investor, and oftentimes finding one member of the team can lead you to the others. Happy Investing!

About The Author Adem Hamidovic is a part-time real estate investor and operator of www.ProfitPiggy.com, a website devoted to new and experienced real estate investors alike. admin@profitpiggy.com

How to Build a Real Estate Investing Power Team

How to Build a Real Estate Investing Power Team

 by: Adem Hamidovic

As you continue to read about real estate investing, you will no doubt come across the term ‘power team’. What is this ‘power team’? A power team is a group of people without whom successful real estate investing becomes very difficult, if not impossible. Included in a power team are at least one real estate agent, a mortgage broker, and a real estate lawyer, all of whom will have experience in creative real estate investing.

So, how do you go about building this team? Well, you could just get a copy of the Yellow Pages and start calling, but that will most likely take a very long time, time that could be better spent working on real estate deals! Wouldn’t it be better to have these people call you? I thought so, so here’s what I did. Keep in mind that this technique not only netted me a power team, but also a list of potential partners/buyers for future deals.

The local paper offers a deal on weekend real estate listings, so I placed an advertisement in the paper that read:

“Fixer-upper for sale. Cheap. Need cash and quick closing. 555-5555″

What sort of people would respond to an ad like this? Some will be tire-kickers and the curious, but a good number of callers will be investors and real estate agents. I had the number in the paper forwarded to a voicemail service, and it’s a good thing I did as there were a lot of calls! I find that those who are just curious about the ad tend to hang up without leaving a message, so that takes care of those that aren’t serious.

After listening to the messages I found that there were two real estate agents that had answered. I called the first one, George, and told him that the home had sold, but would he be interested in working with fixer-uppers in the future? He replied that he would, but didn’t seem interested in discussing it much further. Now, I should mention here that I never actually had a home to sell - what I posted is called a ‘ghost ad’, used to guage interest in something. You may not feel entirely comfortable with this, and that’s fine. Simply post a different ad that gets the same sort of message across.

The next agent, Elizabeth, was much more receptive. We spoke for well over an hour about her experiences in real estate - it turns out that she actively invests in real estate herself. She would be more than happy to search the mls on my behalf, as well as submit as many offers as I would send her way. Perfect!

And here’s the best part: since I had found a real estate agent who also invests, I was also able to use the resources that she uses in her deals. So I now had access to a great real estate lawyer as well as a mortgage broker, along with a recommended property inspector. That saved me loads of work and time. My power team was now complete!

I’ve since become good friends with Elizabeth, and she regularly sends me listings that haven’t made it to the mls yet. This gives me a huge advantage in pursuing deals as only a relatively small number of people are aware of the sale. I picked up my latest rental property this way - the property was going to be listed on the mls in two days time, but since Elizabeth let me in on the deal early I was able to close before the general public became aware.

A good power team is crucial to your success as a real estate investor, and oftentimes finding one member of the team can lead you to the others. Happy Investing!

About The Author Adem Hamidovic is a part-time real estate investor and operator of www.ProfitPiggy.com, a website devoted to new and experienced real estate investors alike. admin@profitpiggy.com

Finding the Right Attorney for Real Estate Investing

Hiring a real estate attorney is one of the most important decisions to consider when first becoming involved in real estate investing. The right Attorney will keep one on tract and lessen the liability in investing in real estate. For a real estate amateur, buying or selling a home without an agent, a real estate lawyer will always be of assistance in order to look into matters which he or she may not be aware of. Steps to hiring a Real Estate Investing Attorney. Make a list of Attorney’s Through contacts (friends, family members, colleagues, bar-association members), make a list of lawyers. Screening Next, find out everything about the listed attorneys and then do an initial screening shortlist three or four prospective attorney candidates: Few things to pay attention to on screening: * Analyze the biographies and Web sites for the attorney and their law firms * Experience in the law field, especially in law pertaining to real estate * Go through a few client testimonials and other references of the attorney * Check out the archives of your local newspaper. Has there been any publicity about the lawyer or the cases that he or she has handled? * Ask about conflicts of interest. Does the lawyer represent any opposing parties? Does the lawyer represent any of the competitors? There are basically two types of real estate lawyers: those who handle lawsuits (called litigators) and those who primarily handle contract matters (called transactional lawyers). Some lawyers do both, but most of them tend to specialize in one area or the other. If you are involved in a lawsuit or may end up in one, look for a litigator. Otherwise, a lawyer who handles transactions may be your best bet. Tips & Warnings * Start with the easiest, least expensive steps an attorney can perform first. Sometimes a little help is all you need. * Attorneys are willing to handle multiple tasks for a fixed price or retainer. * Make sure the attorney specializes in real estate and has expertise in the areas required * It is preferable that an attorney also be a licensed real estate broker. * Real estate brokers are not attorneys and cannot give legal advice. Pros & Cons of Hiring an Attorney

If not a seasoned buyer or seller, it would always be safe to hire an attorney in order to look at things like zoning or permitted use laws, neighborhood or condo association by-laws, environmental restrictions, tax issues, and all of the other sections that can pop up in future.

A Real Estate lawyer will add cost to the transaction because of his or her fees. While these costs are usually not excessive, they are a consideration. Using a Real Estate lawyer may cause the deal to close at a later date due to his or her need to review and revise the purchase and sale agreement.

About the Author

Marcell Corkern is a writer and active Real Estate Investor and specializes in investments of residential real estate and residential mortgages