Today’s REI Classroom Lesson
Justin Wilmot goes over what team you should have in place outside of your company.
REI Classroom Summary
By having the top title company, real estate agent, and other investors on your external team, you’ll have the support you need to scale your business.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. Now, let’s meet today’s expert host.
Justin: How are you doing? Justin Wilmot here again, the 10-Hour Wholesaler, and I will be your coach, educator, and mentor on this REI Classroom session. We’ll get right into it.
Mike: This REI Classroom real estate lesson is sponsored by AceBusinessFunding.com.
Justin: All right. So what we want to talk about on this one is your critical network. This is critical, which is why I call it the critical network. This is also called the external team. Your external team, a lot of times people think, “Oh, I’ve got a real estate agent and they’re part of my team, and I have a closing company and they’re part of my team.” Yes. They are absolutely part of your team, but it’s important to define . . .
In order to be a scaled and successful investor with consistency it’s really important, critical, to define who is external and who is internal. If you’re depending on just external to run your company, to run your business, there are a lot of things not getting done, and that’s just the cold, hard truth. So I want to talk about the external team because they’re absolutely critical, just as critical as internal.
So when it comes to external teams, first and foremost, right off the bat, if you don’t already know, you need to be working with the top, and I mean the top, the number one title company and/or title attorney in your market. If you’re working multiple markets like we do, you need to have a title attorney in each market so you’re staying compliant with the state regulations and know what’s going on in that particular state. A lot of states run stuff differently.
The better your title company is the easier life is going to be for you, period. The title company or title attorney is critical because, let’s say, in wholesaling . . . It’s actually even more critical in wholesaling than if you’re doing buy, renovate, and selling the traditional way. You can pretty much work with anybody that you just enjoy.
But if you’re wholesaling there is lots and lots of communication going on between your side and your buy side, and your sell side with your buyer. Your title company and/or title attorney is going to need to be proficient, stay in communication, be extremely knowledgeable about the process of wholesaling, simultaneous closings and assignments, not saying too much or too little, and keeping everybody involved. It’s extremely important. Now, that is part of your external team.
Please don’t think for a moment, though, that they work for you, and I know that, kind of, to some people it’s going to sound like a no-brainer, especially experienced guys. But I’m speaking to the newbies right now. Again, I’m Justin the 10-Hour Wholesaler and a very successful education company. I’ve had the privilege of coaching and mentoring hundreds, if not thousands of people personally. I’m seeing people start to treat their title attorneys and companies as if they work for them and that’s a recipe for disaster.
So, other investors, they are also a critical part of your team. Please stop having this feast or fathom, or “there’s not enough” mentality. You have to work with other wholesalers. Now, I’m all about dominating. I could be aggressive at being the best in your market. But you can’t do that without other people’s help, period. You need other people, especially when it comes to the model of 10-hour wholesaling when you are working with other wholesalers on a consistent basis as a source of inventory, to contract and to then sell to your end buyer. It’s critical, and I see way too many people, both seasoned and newbies, have this competition attitude.
So that brings me right into the next subject of your external team, your REIA. If you don’t already have a local real estate investors association in your target market I highly encourage you to start one, and you are in an excellent situation if you don’t have one. Even if there is one, you could still create a subgroup. There are a lot of online platforms. You can even start it on Facebook and get a group of people together that way.
But your team that you cultivate through your local REIA will be absolutely critical to your success, critical. The networking, the relationships that come through that, they are irreplaceable and priceless because you can’t buy those types of relationships. When you are heading a local REIA, you are the authority. The leads and the deals, and the people, and the private money come to you. So that’s extremely important.
We talked about closing companies and finally, when you create this local REIA I want to encourage you to go into it with the mindset to recruit private money. I was going to say most, but in every major metropolitan all the way down to the smallest cities with 100,000 people or less, there are people that want to get into real estate, but they don’t want to do all the work.
Again, I’ve had the blessings to coach people all across the countries. Actually, I’m sorry, across the world. In every single market there has never been a time where there isn’t somebody who is willing to lend and get a high return backed by real estate that comes from being the authority person at a local REIA. Again, it’s irreplaceable. It’s invaluable. When you are the authority at this REIA the private money will come to you.
So this is your external team, your realtors. You must cultivate those relationships and give back, extremely important. There will be plenty of leads when you do direct mail. You’re going to need to give some of those dead leads to them so that they can turn into listings. Don’t just ask, ask, ask and take. Your local title company, title attorney, the best in the market, start your REIA. You will build a team of people at your local REIA. Ultimately, that will lead into private money. All right, thanks for being here, guys. Bye-bye.
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