How do you know if people who claim to be real estate investors are actually the real deal? How do you know they have the same integrity and work ethic? What about their mindset? Do they have a scarcity mentality or is more on the abundant side? Do they have the resources or are they blowing smoke?
These are all valid questions you want to ask yourself when qualifying people to be a part of your power team and it can be challenging to do.
We live in a world where everyone cares about their appearance. Social media plays a role in presenting somewhat of a façade and really only acts as a highlight reel, showcasing only the good. People may find someone on social media and think they’re the real deal because of an online profile appearance, when really, he or she may not have a clue about investing or how to manage money.
It’s important to understand what it takes to be a part of a power team and it’s important to leverage strengths.
Below is a bullet point checklist of things you’ll want to include in your qualification process when finding like-minded individuals to be a part of your investment world.
- Credentials — what credentials do they have? Have they done deals before? If so, what kind of deals? What types of strategies? Have those transactions been profitable? And have those strategies been the right move on that particular property?
- Power Team members — Who do they currently have as a part of their own power team? Interview them and see what their mindset is like.
- Financially literate and educated — Do they understand multiple funding sources and leveraging OPM (Other People s Money)? Do they understand creative finance strategies and are they open to using them?
- Any licenses, certifications or degrees related to the field you’re investing in — do they have any licenses? Real estate license? General contractor license? Series 7? Are they qualified professionals in the industry? If so, how long have they been licensed and how have they used their license? Have they sold any properties as an agent? Have they renovated any homes as a GC?
- References and/or reviews — Do they have anyone who can vouch for their investment experience? Do they have any reviews for whatever licenses or businesses they may have?
- Website, business page, place of business, entities in place — What does their portfolio look like? Whether they promote it online or not, seeing what they’ve done digitally or physically can help you better understand their experience and scope of work. Do they have an online presence? How do they capture leads? Do they understand entity structure and if so, where are their businesses located?
- Proof of income or business tax returns — Seeing their financials would be valid if you do intend to go into business with them. Have their businesses been profitable? Have they maximized their tax benefits? Do they understand tax strategies? What type of asset protection do they have in place?
It’s not a one size fits all when it comes to qualifying your power team, but these guidelines may help you find people who think like you, act like you and have the same end goal as you. You may find similar people at investment clubs, real estate events, banks, social events or even in your everyday life. The main thing is making sure they’re open and understanding of your values and mission. If you find that, you’ll be on the right track to getting the appropriate people in place so your business can flourish.
Areas of Review
Big picture takeaway points
- Don’t hire anyone based solely off an online profile.
- Make sure they have a license and are certified in the field they claim.
- Ask people you trust who they have used. Word of mouth is a huge asset.
Self-reflection questions to think more about the content
- Have I seen proof of financials for anyone I’m considering hiring?
- Am I prepared to add this person to my power team?
Legacy’s Building Wealth Club offers you the financial education needed to pursue your goals. Let our education and experience lead the way!