Business development 101 could easily cover a myriad of different topics that range from gaining access to capital to meeting contacts. In fact, the number of things one must learn to simply get their business off the ground can be staggering at times — if not intimidating. It’s worth noting, however, that while business development 101 could vary extensively between industries, few things are more important to the real estate industry than the people representing it. That’s right, real estate investors are only as strong as the people they surround themselves with, and you are no exception to the rule.
If you want to develop a truly awe-inspiring business, you have to hire the right real estate team. Every successful business is the result of a unique convergence of talent congregated in the upper echelon of its respective managing ranks. In other words, the talent makes the business; not the other way around. Nothing, at least that I am aware of, is more valuable to an up-and-coming business than the people it chooses to represent it. Hiring the right team may as well be business development 101; you would be wise to remember that.
If you don’t have time to take the proverbial business development 101 class, however, make sure you hire the right team. It’s the least you can do, and you owe it to yourself. Provided you hire the best workers for the job, there is no reason you shouldn’t expect great things.
Not surprisingly, your positional needs can vary from the average real estate professional. What you may deem necessary at the moment may be due to unique circumstances. However, I maintain that each real estate team has, at its core, a universal foundation. That said, I recommend enlisting the services of the following people if you want to get your business started off on the right foot:
It should go without saying, but the skills you bring to the table will go a long way in determining the positions you want to hire for. For example, you may not need to prioritize a marketing specialist if you are fully capable of taking on that responsibility. On the other hand, there are a few positions I believe every real estate investor with aspirations of a successful company should hire when the funding allows it. Those positions are as follows:
1. Office Assistant: Put simply, the office assistant should take over all of the time-consuming, but nonetheless essential to your success, tasks involved in running a company. Not only that, but the office assistant should be the first person you hire, as they will help you with everything else moving forward. That way, you will be able to focus your efforts on what really matters: income-producing activities. With an office assistant, you can focus on the most important matters of running a business while they run errands, answer phones, check the mail, make copies and take care of the mundane tasks you would rather leave to someone else.
2. Processor: As their name would lead you to believe, the processor will fill out paperwork, arrange financing, and solve any problems that may arise from paperwork. Its worth noting, however, that the processor’s responsibilities shouldn’t end there. A good processor will also motivate, mediate, and coordinate a great deal of people and events. It’s safe to say your processor will play an integral role in your business, so don’t simply ignore it. In fact, you could argue that it is this position that will make or break your ability to take a deal from closing to sale. Provided you hire the right person for the job, there should be no reason they can’t facilitate an entire deal.
3. Marketing Director: As their name suggests, marketing directors are those in charge of your marketing efforts. In other words, this individual will be the person responsible for getting your phones to ring with potential deals. Their sole purpose is to find motivated sellers to work with, a position that can’t be taken lightly. It’s the marketing director’s job to implement a monthly marketing plan that will evolve with your business while effectively bringing in “hot” leads. It’s worth noting that marketing is particularly important and time-consuming, so it might not hurt to get them an assistant eventually. Remember, marketing is the life-blood of a successful real estate investor, make sure your director is as good as they come.
4. Acquisition Specialist: If their name wasn’t already telling enough, the acquisition specialist is the position that will take the leads the marketing director finds and turn them into legitimate deals. That said, it’s their responsibility to analyze deals, meet with prospective sellers, negotiate deals, and get contracts signed. This position will need to exercise a thorough understanding of every exit strategy, multiple financing avenues, and be able to compile accurate repair lists. It’s also worth noting that they will be the main person to follow up on past offers and pending deals.
5. Selling Specialist Not unlike your average buying agent, the selling specialist you hire should spend the majority of their time building a buyers list. Your selling specialist will prescreen and evaluate buyers, get them pre-qualified with your hard money lender, mortgage broker, and/or private lender. The selling specialist works hand in hand with the processor to make sure that the deal closes. All things, considered, this is the position that will get your next deal sold in a timely and profitable manner.
Business development 101 may as well refer to hiring the right team. If for nothing else, few things are more important to a new business than the people it chooses to represent it. In the right hands, even a new company can surpass lofty expectations, and your real estate business is no exception.