Building a winning team
# Entrepreneur of the Week Roy Gottesdiner - Post 3
In the previous post we talked about building our strategy - choosing a market, type of property, budget, etc. Now a team needs to be built, and the team built can be the difference between success and failure, certainly when it comes to investing on the other side of the world. People are shocked when I tell them about my experience and that I have not been to the US in the last five years and have not physically seen anyone I work with and any of my assets. I can afford it because I have built a good team around me and I can quietly manage everything from here.
Who are the people we need on our team?
There are the core roles and then there are other roles that are important to be aware of.
1. Mediator / Wholesaler
In my opinion the most important part of the puzzle, because one must be able to make suggestions and no less important - respond to them quickly. When you talk to a broker, try to make sure it is a broker who works with investors, preferably investors from abroad, and see how your chemistry is with him. There is a lot of trial and error here and it also took me a few swaps until I found the agent I like to work with and my communication with him is excellent.
2. Remodeling
Assuming we do not buy turnkey assets because we want to add value to them, we will have to find a good repairman. It's much less easy than it sounds, because the market is boiling and people who find a good repairman will not happily share his details, and yet it is entirely possible. What matters is to only reach out to someone recommended who has done some renovations to people you know, build a detailed SOW with him so there is no room for too many mistakes, and divide the payment into as many milestones as possible to minimize risks.
3. Management company
We have finished renovating, now we need someone to help us with the day-to-day management. As with a home remodeler, you should always go with a reputable company that works with other investors in the area, and it is always worthwhile to have an introductory call with them to hear about their form of work and make sure you feel comfortable with them. If you have reached a point where you do not trust the management company - you should replace it as soon as possible.
4. Lander
The last part of the puzzle (or maybe the first?) Is Lander. Assuming you do not plan to use only cash all the time, financing will be a very significant part of your ability to grow. I've talked to over a hundred vows in the last two years and I currently have four that I work with. Of course the emphasis here is to make sure it is a reliable blender, with experience with foreign investors. I had a deal that fell through at the last minute because Lander did not understand exactly what the remote closing process was, and I went to a two-month job, all the expenses of inspection and appraisal, and of course the deal itself.
Now for more roles that are important to have on hand, but they are not critical and it is much easier to replace the professional:
Teitel Company
It is important to find a reliable and professional title company that knows how to work with foreign investors, otherwise it opens up a lot of closing problems.
Inspector
We are on the other side of the world, how do we know what the condition of the property is? It is important to use a recommended inspector and as strict as possible. That way we too will know that we have not missed any essential item and also we will have more ammunition to request another price reduction after the inspection?
Insurance Agent
There is no meaning to one insurance company or another, so I recommend simply finding an agent who gives us policies that suit us in terms of price and coverage, our communication with him flows, and just working with him on all our assets.
Note: The question "What about boots on the ground?" Probably comes to mind. And my answer is that there is no specific person who fills this role, although you can pay someone dedicated whose job will be to physically walk around your market and each time perform tasks you give him like make sure renovation progress etc, but if the people you added to the team are professional enough, they will be your boots.
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