In this episode, I talk about developing your team. If you’re in this business long enough, your team will evolve over time as people come in and out of it. Some of them will leave on their own, others you will have to remove from your business for various reasons. This is a normal process and something you should not only expect but embrace and prepare for.
The team that I started with when I began my real estate investing business looks very different from the team I have now. The only two members of the team that have stayed constant are me and my wife. Realtors have changed, contractors have changed, title companies and insurance companies have all changed. Why so much change? It’s simple: in some instances certain members of the team weren’t doing what was required of them, and other members of the team became impossible to work with due to financial factors. In other words, sometimes people raise their rates and it becomes impossible, from an economic standpoint, to continue using them. This is often true of contractors. When you start working with them their rates are great and everything is fine. But for some reason, certain contractors raise their rates to a point that it no longer makes sense to use them for jobs. I honestly don’t understand why someone would do this and risk losing all future business. This is exactly what has happened to me.
The good news is, it’s absolutely fine. There should always be a churning process in your business where you are developing your team and bringing new people in. It’s not only normal but it’s positively healthy for your business. I have found really great contractors as a result of needing to replace the one that I was previously using. It also balances your current team members. Additionally, there are times when it’s necessary to utilize more than one realtor. You are certainly not locked down to using only one. By doing so you could very likely be limiting the amount of business that you can do. This does not make you disloyal, but there is a certain etiquette that you should observe. If you promise a realtor that you will sell your house through them, you should follow through. Don’t make promises that you are not willing to keep in business. However, this is a business, and any realtor should understand that you are under no obligation to use them exclusively. I will say though, through my coaching program I have heard that in certain parts of the country, realtors require investors to sign a contract stating that you will use exclusively them as your buyer’s agent. Up until a few weeks ago I had not heard of this. Is this the case where you live? Where I live it is absolutely not the case, and I do use a few realtors consistently.
It’s not just realtors and contractors that you should constantly be developing, but also insurance companies, title companies, etc. Keeping costs down and finding the best rates and service is a fundamental function of a business owner. You should not ignore this part of running your business. It’s critical to keep costs down without jeopardizing your product. It is smart to ask people in your local real estate network who they use for different things. Always be willing to share resources and ask those you share your resources with to share their resources as well.
Don’t forget, business at its core is about making money and being profitable. This cannot be done if you are not constantly developing your team and making sure what you are paying for goods and services is competitive.