You might have started your real estate business on your own, but if you’re planning on growth and continued success, a solitary entity probably won’t cut it. In order to build a successful realty business, you need a few essential people on your team.
When you have more numbers on your team, you can direct more money to investments, cover more ground, and deliver a higher level of satisfaction to buyers and renters. In a word, you’ll see higher profits as a result.
Additional entities on your team will also spread the responsibilities when your business grows so large you can’t maintain it on your own. “When a real estate agent builds a big enough circle of influence they will start to see many referrals and leads come in; more than they can handle,” says Mark Ferguson, realty expert and contributor for Invest Four More.
Referrals are great news because they mean you’re going to make more money, but odds are, you won’t be able to stay on top of everything. Ferguson goes on to explain that while it might seem like going into real estate alone would mean higher profits, many investors make more money when they add people to the team, despite having to split the proceeds.
“The agent who starts a team will make money off the agents they hire because they take a split of the agent’s commissions,” Ferguson explains. “When an agent becomes successful, starting a team is a great way to build off their success by adding agents and making money without selling more houses themselves.”
If you’ve adopted the “lone wolf” approach to real estate investing, maybe it’s time to partner up. You’ll see higher profits with reduced stress and responsibility. Consider adding the following five entities.
If you handle rental properties of any kind (residential, commercial, single-family, multi-family complexes, etc.) you need property managers. When you have property managers on hand, you’re no longer the first call for late-night plumbing emergencies, noise complaints, and dissatisfied tenants.
Property managers handle a wide variety of responsibilities that might seem menial and time-consuming to a busy investor such as yourself. They include:
- Maintenance and inspection
- Rent collection
- Tenant screening
- Eviction services
- Legal consulting
- Lease agreement drafting
- Accounting services
- Professional-quality photography
- 24-hour support line
Some investors hesitate to hire a property management team because of the monthly fee. When you consider the benefits, however, you’ll find it’s more affordable to hire a property management company than to hire a landlord or office assistant each month.
What’s more, property managers will lead to higher profits. Properties under their care remain in better condition with a better reputation. Thus, you can charge more rent and maintain tenants.
Local Real Estate Agent
You probably know a thing or two about the market and may even be a certified Realtor. But the challenges of building your business and managing multiple property transactions can make it difficult to give this aspect of the job the proper attention and focus.
A local real estate agent (emphasis on local) will handle the nitty-gritty of buying and selling. He or she will scan the market, determine prices, order home inspections, negotiate with clients, and more.
Screen potential agents carefully. Look for expansive knowledge of the area and an ability to sniff out lucrative properties. To get more bang for your buck and potentially save money in the long run, consider a flat-rate realty company like Green Residential in Houston and the surrounding areas.
When a local Realtor joins your team, you’ll pay the standard six percent royalty for the services and get only one Realtor. In contrast, Green Residential offers a flat rate that’s often much cheaper than the standard Realtor fee, and you get a whole team of qualified Realtors at your disposal.
Though you may not need an attorney full time, keep one on retainer. Putting an attorney on your real estate team is one of the wisest precautions you can take.
A lawyer can help you get the best value out of your investments without running into issues or making mistakes that could cost you your business. An attorney will protect you from legal problems as well as get you out of trouble if it arises.
Many laws go into property investment, including legal codes for expansion, business licenses, contract and lease agreements, fair housing laws, and so much more. If you fail to adhere to a certain law, or your contract is permeable, you’ll end up paying for more than just your dignity.
If you hire a property management company, you’ll have a CPA, rent collection agency, and statement-issuing services instantly on your team. You might consider adding a few other representatives to make the loan application and qualification process a little easier, though.
With your own mortgage broker, you’ll have more flexibility when purchasing a property. Your banker can help you make better decisions and speed up closings. You may also get better interest rates and more flexible loan terms because the banker knows you’re a viable loan prospect based on past deals.
A successful real estate business takes every possible opportunity to save money and increase returns. Having a trusted mortgage broker on retainer is just one of the many ways you can do that.
People to Handle the Details
In every property purchase, there are dozens of smaller tasks that must be handled with precision and care. You can excise a lot of the stress from these scenarios by having certain entities on retainer.
For example, most home buyers must have the property inspected and appraised before their financial institution will loan them money. If you have quality appraisers and inspectors on retainer, they can ease the purchasing process, and put money in your pocket more quickly.
You may even get a portion of their earnings for each job performed. Other entities you may consider hiring include:
- Escrow officer
- Cleaning and maintenance company
- Office manager
- Insurance agent
- Property stager
Each of these entities will not only reduce stress and eliminate some of your more time-consuming tasks but increase your profits as well. It’s amazing what a like-minded team can do for a growing business.
Contact Green Residential for Property Management and Realty Services Today!
If you’re looking for top-notch property managers and flat-rate realty specialists in the Houston or Katy areas, look no further than Green Residential. For a very affordable flat-rate fee, we offer top-quality services in each of the areas mentioned above.
We can help your real estate team grow and increase your profits exponentially. For more information, contact us today!