Jobs, jobs, jobs…this is what we need to see economies grow; but what happens when people do not show up for work after they have been hired? If you are just starting out as a real estate investor, and you are building your first real estate investment team, then you might be feeling a little like a revolving door because the process can include working with several people before the right person clicks; but take heart. The learning curve will surely pass. Here are some ideas and suggestions to make this process easier, while making your real estate business more rewarding.
A Common Challenge
At some point, every real estate investor meets with the challenge of building an efficient investment team in any given market. It really takes the right combination of determination and perseverance by everyone on the team regardless of whether that team member is a real estate attorney, a real estate agent, a property inspector, or a project manager.
If a team member is not 100% on the same page, it shows in their behavior, and then it impacts the team by slowing it down or stalling it altogether. For the most determined investors, which are typically those investors who know that real estate is their blood, they know it is only a matter of time before they find the right people to fill the important roles on their team; but for investors who are new, or who do not have the tolerance for learning how to lead teams effectively, they may give up after encountering the first one or two “bad apples.” Generally speaking, the hiring and management of investment teams requires a lot of patience, as well as the ability to keep communication open, honest, and solution-based.
Three Ideas to Overcome Challenges
Here are three ideas to manage the challenge of finding the right people for your real estate investment team.
Solution 1. Realize that the interview process is just the beginning.
In a perfect world, we hire people and they are always a perfect fit . In the real world, however, a persons’ true character and work ethic does not come through until after working with them for a little while. This might happen after the first one or two deals, if they make it to a deal at all. To manage the uncertainty of this process, it would be a good idea to set up a trial period, and understand that the hiring process is just that–a process. It cannot be rushed; it can only be managed to reduce the wasting of time and resources. A good team member recognizes this, and works through the “thick-and-thin” of developing long-term wealth-building partnerships.
Only when you have good people on your team will your real estate business ever grow to the next level; so be diligent, but do not be discouraged.
Solution 2. Going in with expectations in check – Establishing realistic expectations.
Real estate is neither easy, nor glamorous. The daily work of sifting through countless properties in constant search of financially feasible properties requires a non-stop commitment, tenacious perseverance, and the determination to get things done, as required. This is what it takes to keep up with a constant supply of good deals. Finding a steady supply of financially feasible properties is fundamental to the success of any real estate investor whether a wholesaler, rehabber, landlord, or lease-optioner. With expectations in check, and an acceptance that not all personalities are a good fit for the role we need to fill, it could provide a shift in perception that is needed for the adoption of a mindset; making it easier to manage the team over the long term in a sustainable way.
3. Watch for tell-tale signs of behavioral incompatibility.
Non-responsiveness, slow, or lackadaisical behavior is a red flag. Seeking to understand the issues that might be preventing a team member from doing his or her job effectively is always the best first step; but when the problem continues to be a growing problem, then a decision must be made. Usually, the best path forward dictates the decision, and the decision may be to let that team member go–whether they were asked to do so, or they volunteered. Whatever the circumstances, when people can not communicate and work through the issues together, they cannot really work effectively together; but when people are on the same page, expectations are realistic, and everyone is committed to building a successful real estate business together that is when a business reaches the next level of growth, and growth is what we need to feed our own economy.