@Crystal Smith Response: The first thing you need to do when building a team whether locally or from afar is to pull together your own financials to prove you can close. Then be prepared to provide that evidence to whomever you’re considering be part of your team. Without that evidence, you’ll be wasting people’s time. Someone may do a short call with you, but they are not going to join a team that can’t close. Now let’s deal with your list of team members
Lenders- If the lenders are hard money lenders then you need to get your financials in place and start researching the requirements to qualify with various lenders. Regarding private money lenders, you need to start learning how to present deals to these types of lenders. You can probably find some topics on Bigger Pockets on how to present deals to private money lenders
RE Agent/Broker- Don’t approach a broker without proof of funds or pre-approval. While you may find someone who will work with you before you have that in place, the good ones aren’t going to waste their time
Property Manager- You don’t need a property manager because you have nothing to manage. Maybe start putting together a list of potential managers but until you have something to manger you don’t need a property manager on your team unless you consider a Real Estate agent or agency that also has property management services
Attorney- Lots of good ones around town- You can use a forum like BP for recommendations. Just make sure they are a Real Estate attorney.
@ Jason Response: Thank You!!! I really appreciate the information. I think I may be thinking too much into it. Analysis paralysis is a real thing!!
@Crystal Smith Response: Reading through the thread I see you’ve tried to work with 4 different RE agents. Have you examined why RE agents don’t want to put in offers for you? It may not be about the agents. Have you provided them w/ a pre-approval letter and/or a Proof of Funds; i.e. evidence you can close? Are all your offers low balls? Since you are out of town are you expecting the agents to do all the leg work for you without compensation? Or is it some combination of all the above? Examine this as your establishing relationships.
@ Jason Response: Well… every offer I’ve requested has been for listing price. I provided my own custom CMA with comps and detailed analysis. I find the property myself. And I do have a POF letter through a hard money lender. Additionally, I have liquid funds to get the project started and pay initial acquisition costs (closing costs, down payment, EMD, etc.). I honestly believe the agents are good at their job. But, being this will be my first project I believe I will need more “hand-holding” throughout the process(especially being OOS) and every agent I’ve worked with is so busy with their own projects, and other clients that are bringing them commission checks with much less “attention”, that a new investor needs on that first project. This is merely an assumption that I noticed after doing some VA work for one of the agents just as a learning tool. The clients that received her attention most were the people with the highest pre-approval amounts, were paying cash, or referrals from her boss. Everyone else kind of got put on the back burner. After helping the “top clients” throughout the day it would be around midnight. Thus leaving practically no time for “the others”. Sorry, that was really long-winded.
@Crystal Response: Since you’re operating as a VA, I assume the agent gave you access to the MLS. If so I recommend you do the following: Go back and look at all the deals you made offers on. What did they actually sell for?
If the properties sold above list price that means you’re competition is either working with tighter margins or are able to get renovations completed at a lower cost than you’re projecting. So you need to evaluate can you compete with smaller margins.
If the properties sold at list price or below, when you made an offer at the list; that means the sellers believe your offer is weak. That weakness could be your lender; it could be not putting enough EMD or too long to close. Regarding a weak lender- We had a retail client who was part of a special program for 1st-time buyers. The program is terrible and all the agents around town know it & are bold enough to put in writing that they rejected her offer because of the reputation of the lender.
@Jason Response: wow!!! That is golden information!!! I never even considered doing that. I will be doing exactly as you said to see where I can adjust my acquisition strategy thus far. Those are such great tips! Thank you.