Being a one-man team as a real estate investor can be hard. There’s so many moving parts and areas of the business that it’s impossible for us to be good at everything in the business.
So who do you hire first… and when do you know it’s time to hire them?
There are multiple variables that come into play to figure this out. Below are some questions to consider.
- What parts of my business do I need the most help with?
- Would the position be full-time or part time?
- How does the pay structure look for this position? Is it commission or salary?
- Is your business stable enough to consistently pay this position and keep them busy?
- How do you expect to scale your business after hiring them?
- Are you going to give them benefits?
- What type of person fits this position? (think about personality traits)
- How will this person be trained?
These are just a few important considerations that you need to think about when you’re thinking of your first hire. Everything changes when you have other people relying on you and your business. Your risk tolerance might go down and your business really has to start acting like a true business.
When figuring out what position you should hire, you need to think about what areas of the business you are weak at and don’t enjoy doing. This should be the position you hire out first. Before you start the hiring process, start documenting all of the processes in this position so that training for anyone in that position is easy and tasks are done exactly like you prefer. Preparation is key.
If you’re hiring a commission only type position like an acquisitions manager, they might need a small pay for the first few months while they start out. If they don’t get paid for a few months, they might not stick around or stay motivated.
If you’re hiring someone who’s eager to get into the real estate investing industry, you need to have a transparent conversation about their plans to become an independent real estate in the future. This way, it’s clear that they won’t work for you forever and they want to learn from you which might provide you the opportunity to offer less pay because they’re learning while working.
Always be slow to hire and quick to fire. With the right person, your business can grow substantially but a bad hire can slow down your progress and add unnecessary stress to your life.