Networking, Relationships, REI Team

Question 1

How to network locally?

Answer 1

become part of local real estate investment association

Question 2

3 Keys to Successful Business Relationships:

Answer 2

1. Make it Easy To Do Business With You. As a buyer, make the seller’s life easier by proactively presenting your source of funds, lending, down payment and inspection details ready to go early on. Constantly keep seller updated as you progress through important dates and inspections. Sometimes leaving some meat on the bone for the broker is the best thing you can do.
2. Do what you say you will do - Build a reputation for being reliable and they will want to bring deals to you.
3. Don’t be a pain in the butt - After you negotiate and shake on it, DO THE DEAL
   - You might turn brokers off by being a nickel and dimer. 2 missing cabinet doors is not something worth complaining about.

Question 3

Who you need on your REI team?

Answer 3

Real Estate Brokers (as many as you can get working for you), Property Management Company, Bankers and other lenders, Attorney, Appraiser, Inspector, Insurance Agent.

Question 4

When to get attorney and what to look for in them?

Answer 4

Get an attorney before you start signing anything starting from the purchase and sale agreement. You want someone who is experienced in RE specifically, looks out for client’s best interest, vast knowledge, is willing to get creative but also knows legal boundaries, easy to get along with. The good ones can even get your tax assessment lowered.

Question 5

How to find good property inspector:

Answer 5

Do NOT get a referral from your broker, get one from PM. Ones who have relationship with broker might be afraid to kill a deal and broker not get commission, thinking they may not get called back for future inspections.

Do not go with the lowball bid, see who is best qualified with lots of experience.

Question 6

Mindset with contractors

Answer 6

• Good ones get job done on time and on budget. Don’t fall in love.
  
  • Your goal is to have a few good contractors you can rely on. Get a new bid for EVERY SINGLE PROJECT. Otherwise, you’ll notice their bid process creep up.

Question 7

What to look for in Insurance Agent:

Answer 7

Good ones will get you max coverage at min. cost, not worrying if they get lower commission. Look for ones that can get things done

Question 8

Getting an Accountant

Answer 8

They file required reports to the govt, prepare and send in quarterly returns, advise you on tax consequences of transactions or changes.
- As you grow, have your return from previous year reviewed by bigger firms and ask if they could have saved you any money. Will cost you more, but will save money in the long-run as move up to these bigger firms that have more specialists/resources