Episode 087 - Who You Need on Your Team When Investing
May 04, 2020
SHOW NOTES & LESSONS
Every Real Estate Investor needs a team of good people around them in order to get the deals done right. Pick Your Team carefully and...
Always Treat Your Team Well! That's literally the number one Rule when it comes to your Team.
Hire slow and Fire fast. That's the number two Rule. Take your time finding team members and do your due diligence. Ask for referrals from other investors and ask for references from potential team members themselves. You can't be careful enough. If and when something does go wrong, Fire Fast. Don't give second chances or you may be putting your entire business and your reputation on the line.
Who are your Team Members?
01) A great Real Estate Agent or Broker who understands investing
02) An awesome Title Company and Title Agent*
*Some states require Real Estate Attorneys, so use friends and family to find a good one.
03) A very thorough Home Inspector
04) A Contractor Extraordinaire
05) An Appraiser who knows your market inside and out
06) An Insurance Agent who does Short Term Rentals (if you are doing STRs) and understands exactly what coverage you need & why
07) Your Money Guys (a Mortgage Broker, Private Investors, Hard Money Lenders for Bridge Loans, Private Money Lenders, and the Custodians of your IRAs or self-directed retirement accounts)
08) A really good Bookkeeper who can do reports for your investors, organize your properties, keep track of bank accounts and more
09) Bonus - Bird Dogs, people who find you deals on properties in your area
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[00:01] Over the last two centuries, nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave with less risk and less capital while creating greater income, is your host, best selling author and Speaker, Michelle Russell.
[00:21] Hi, this is Michelle, the Master of Money Mindset, and you are listening to the Short Term Rental Revenue Podcast...
and in today's episode, we're going to be talking about our team, the team of people that work with us every single week and every single deal that we dio. We're going to talk about the team, but first I wanted to remind you that today's episode is brought to you by Audible. You can get your first audio book for free by going to audible trial dot com forward slash str revenue. That's audible trial dot com forward slash S T R revenue, and you can get your first audiobook for free there and a membership for 30 days into the audible membership where you get at least two books, sometimes more, because in April it was more. But I wanted to also let you know that I think we talked about this last week that we've been going through a ton of oldie but goodie books when it comes to real estate and real estate investing, because right
hot. Well, lots and lots of deals were on Facebook. Pages were on all kinds of groups right now, picking up furniture, picking up properties, picking up leases that nobody wants. We're doing a lot of work building our business when everybody is so fearful. Remember the Warren Buffett sane when people are greedy, be fearful when people are fearful, Be greedy. This is the time to find those deals. Everything is on sale right now, and last week we talked about the numbers. This week we're going to talk about the team. One
things before we talk about the team I wanted to go over is building your belief about building this business. So we talked about the numbers and we get so many comments back from people, and what's really crazy is a lot of people are very fearful. I mean, they just they can't seem to get it together to make thes offers or t even get there right there, so disappointed in themselves. And guys, I could just got to tell you you are going to lose a little money in real estate. But once you start doing it, you're going to make a lot more money. Don't be so afraid of making mistakes, that you don't make any moves, that you just stand still, that you stay in the same place and that you feel disappointed and, you know, just like you're a loser or something, because you haven't made any moves. You're too scared to move. Move. It's better to move and fall on your face. You're still falling forward, you know? What do they call it? Failing forward. Like the book Failing forward. It's an old old book, but it was a great book because it just basically said, Look, it is better to go out there and fail and do something, then to never go out there at all, so you can't be successful without failing. There's no one out there who is super duper successful everyday millionaires. That's the book of his referencing. It kind of told you that people have failed, have failed, have failed they've, you know, created a bunch of debt and then paid it off. The thing is, we learned these lessons. Everything is a lesson, and you've got to get out there and do that. So one
really cool things is I love Chris Hogan's book about retirement. I think it's just retire rich or something. Can't remember the name of it. But I was listening this week to his everyday millionaires, and there was just some ordinary people who became millionaires in America just by playing it safe. And
they were playing it. Dave Ramsey safe. And I was like, "Dude, people need to hear this shit! They really, really do!" Here's the deal... you can't become a millionaire just playing it safe. But the whole thing is, they're playing it. They're investing their doing things. You will never become wealthy if you're just sitting and listening to these podcasts and listening Teoh other podcasts or reading books about it or watching HD TV and all the different channels about investing. But you never take action if you don't take action, you will never be wealthy, and part of taking action is failing. Once in a while, you will fail. And so last week we talked about making offers on houses and how you'll have a bunch of nose before you get any yeses. That's OK, that's OK. It's totally worth it to go through all those knows in order to get a yes and get a really great deal. It's absolutely worth it, and I don't call those knows failing. Some people call it failure. Some people name it something else. But what I loved about this book was thes everyday millionaires and all the other books I've been reading this week to is these people learn in their mind to rewrite how they take something. How are you taking it? So an example. Is the rain like Did anybody ever see the movie Young Frankenstein? Everything was like going really bad, and Igor says, Well, it could be worse. It could be raining and then, you know, lightning strikes and then throwing starts falling down and they're like standing in the rain, and it's like, Yeah, it could be worse. It could be Rainey and I remember one time my husband and I were driving to California and we used to drive to California with the kids on weekends. When we had long weekends, we would go to the amusement parks over there and from Arizona. It's probably about a six hour drive, and so we'd wait until he got off work and we drive late at night. We leave very late at night so that we would get to the theme parks about the time they opened. You know, like 89 a. M or something. And so we'd be there in the middle of the night. We'd be driving out in the middle of the desert. There's nothing between L. A and Phoenix, but desert in the middle, right? Like you're like, out in the middle of nowhere. I mean, it's is crazy. So we're driving and we get a flat tire. It was nuts. We got all the kids in the back seat, but we're out there. I'm holding a flashlight. My husband's in the desert like there's no lights anywhere. I mean, there was no there was no moon that night. It was Super Do Board are, and we're sitting there and he's trying to change the tire and he dropped a lug nut and we're looking for in the dirt in the dark and we're laughing and laughing. And I said, Well, it could be worse. It could be raining, right? And
started laughing. But the whole thing was every single time I think about you know something that's happening, I think to myself, you know, it could be worse. Could be raining right. It could be raining, But the whole point is you have complete and total control about how you take any situation. You can sit there and you can get super pissed off and super angry because you got a flat tire in the middle of the night in the middle of the dark in the middle of the desert. Or you can sit and laugh about it because it's one of those moments that you'll always remember being there with your spouse, laughing in the dark while your kids were sleeping in the car and the rain was pouring down on your face in the middle of the desert. And it was a beautiful, beautiful moment and a beautiful, beautiful memory, right? So how do you want to take it when you hear those knows when people say no to you about buying a property, some people take things so darn personally. Don't take it so personal. It's not personal. You have to get those knows in order to get the deal that you need to get in order to make money. It's your job to make his much money as you can on the by, because that's where the money is made. You have to make smart decisions, right, so you have to get those. So each one of those nose could be a celebration if you just take it that way. But so many people take everything so damn personally. There's also a really great book called The Four Agreements. That's one of my favorite spiritually books. If you can ever get your hands on Ruiz's book, The Four Agreements, I definitely recommend it. I recommend the hard copy as well as listening to it on Audible. I have the hard copy and I have workbook for it. I have, like all kinds of stuff because I'm a huge fan. But one of the agreements is not taking anything personally. This is not meant to be personal. It's just meant for growth. It's it really, really is. And when you stop taking things so personal, life is so much easier to move through and you'll see you'll see that things don't happen to you. They happen for you. I just hope you get that message. I really, really dio. So I recommend highly everyday millionaires, not just everyday millionaires. The four agreements two of the four agreements is probably What is it like to two hours long? I mean, it's not a very long book at all, but you will love it. And Peter Coyote is the one who narrates those books. I know because I listen to him a lot, and I love that guy's voice. He's an actor. You'll recognize his voice as soon as he starts to speak. But he does all his books, and they're very, very good. But listen to everyday millionaires for a little inspiration and also listen to the four agreements so that you learned that. Don't take this personally. It's happening for you, and it's a really good thing. OK, all right now let's move on to today's subject, and that's going to be our team, the team of people that we're gonna have help us when it comes to buying properties for our short term rentals. Okay, now we're going to do next week we're gonna do the team that it takes to run are short term rental business. But right now, today and last week, we're focusing on the by because this is the time to buy these properties. Remember what I said go into these groups. People are freaking the f out there selling everything. They're selling furniture. I mean, there's so many bargains right now. Get out there, open your checkbook, find your friends with IRAs, talk to your aunts and uncles, get some money together and start buying some great properties, because this is the time. But let's talk about the team of people that we need when it comes to buying a property. Now is we're talking about the team members for a real estate investing. I am going to assume that you don't have a marketing plan, Okay, Now, some of us have a marketing plan. When it comes to looking for properties, we send out letters or postcards we have some way. We are finding people. Maybe we buy lists. We have a way of finding people who are trying to sell their properties. Okay, there's a bunch of different ways, and in order for you to get really serious about picking up properties, you will most likely have to buy, listen, do mailings and things like that in order to find people do some kind of advertising or marketing. Okay, now, if you don't have that, that's OK. When you're first getting started, it's absolutely fine. And that's kind of where I'm going to start from in this scenario. But if you want
get more serious about it, I recommend you go to Maria Giordano's website. We've got links to her website so that you can go and find out more about marketing and getting really serious about investing. But it's
do two businesses at one time. Let me just tell you, if you're focusing on real estate and picking up real estate properties, it's going to be hard for you. Toe also at the same time focused on doing a short term rental business. You can do both. I mean, I do do both but you can't do a bunch of things. Well, you know what I mean. So right now, my business is more focused on the short term rental part of it than it is the property acquisition part. If I wanted to get more serious about my property acquisition part, I would start doing heavy marketing and kind of giving B A's to help me run my business. So it depends on where your focus is and what you're doing. I just want you to know that, okay? And be aware of it, definitely. You can get it done. So I'm
say that without heavy marketing, you probably just by looking at Zillow or having a really good number one team member is going to be a real estate agent, a realtor that, you know and trust to find and bring you good deals. Now a real estate agent or broker. They're great team members because they'll find pocket listings for you. Those are listening. Is that aren't on the MLS. They will find good deals for you, but they've got to know what you're looking for. I've got an agent and God bless him. He's such a sweet guy. He's down in Tucson. He sends me listings all the time, but he doesn't hear me when I tell him that I'm looking for something that needs to be fixed up, because all the listings he sends me, he's like, Oh, she does short term rentals. Look at how beautiful these properties are and what great shape they're in and what a great location. But they're all at the top of the market, and I don't by at the top of the market ever, ever. I never dio so I'm not looking for that type. So it's really, really difficult, to say the least to find an agent who knows what you want. No. Is your market, but knows how you want to buy and understands the reasoning for that. And you've got to make it worth their time to be able to find these properties for you. So when you do find them, you make it worth their while. You make it worth their time on all the time and money and effort that they put into finding that property and finding you the deals. Make sure you reward them. Take care of thm, so whenever I need anything. I have a couple of agents that I look Teoh that I always go to. And when things are slow, I'm constantly thinking of them and I'm doing things for them. And I'm sending them gift cards and things like that, because why? Because they take care of me. I'm going to take care of them. They don't make any money until I buy something. Sometimes when I'm buying something, I will not need an agent. I will just find it myself, and I won't have a listing agent. But if I get them involved, that might have them help drop a contractor, Do something for me. I take care of my people and I want you to remember to do that. Always take care of your team. Always, always, always take care of your team. Members don't ever ask them for favours unless you do. First you serve them first, you give their cards out. First you get them people first. OK, you make sure that you are as valuable an asset to them as they are to you. So let's talk about real estate agents. One of my good buddies, Jack Jack Burns, is my guy here in the Valley of the Sun. And so Jack has sold a bunch of properties for me, and he is really amazing at what he does. He knows his numbers, and he also speaks to me Honestly, What I love about that is there's going to be sometimes where I'm buying a house or property and he knows the agents or the agency, and he'll say, You're never going to be able to get below this number with these guys. I just know them. This is how they work. This is the numbers that they use. Any is like we should just move on. And honestly, I really value that opinion because then I have to do like Chris says, Weigh the options. Do I really want this property? How much do I want it? What am I going to do with it? Am I going to try to pull that money back out? If I have to have the money back out, I have to have equity in it, so I get to make those decisions based on somebody like Jack. But my favorite thing about Jack is he's so amazing and really brilliant when it comes to the numbers. He knows the area. He knows the rental incomes. He knows the H A ways. He's going to help me figure everything out to make sure that whatever I want to do with that property, that I'm doing it legally and that there's no leans against the property or there's nothing wrong with it. You want somebody who's on your team and always in your corner. You never, ever want. Somebody who's acting is a dual agent unless you're playing a game. What I mean by that is, sometimes you're buying a house and the house is listed baby on Zillow or something. You want to buy it. But you know what you can offer now when an agent Jewel represents somebody there, never dual representing them. OK means that they're representing you at the same time they're representing the seller, and literally they can't do it. There's just no way I don't believe in it, But the thing is, they can think they are, and that's OK. It means that they're going to get if it's a 6% commission, they're going to get. The whole entire commission is going to go to that agent as long as you don't bring in another agent, right? So they're like, Oh, yeah, I'll represent you. But honestly, they're representing where the money is going. But sometimes we play that game and we're like,
you can represent me when I do that I might Let's say it's
really lying, But I might just play a game where I'm letting them know all the things that have to be fixed in the house and using them, because I know they're going to convey this back to the cellar like they think that I don't know that they're going to be talking back and forth to the seller, but
I know they are. Come on.
They want the highest price that can absolutely get for that property because they're getting a commission off of it, and that's how they earn their money. But if I know what I need to buy the property four and I know that there's a lot of repairs or something, I can definitely reiterate I don't know if you listen to last week's episode. But last week we were talking about some repairs that I could get done for $20,000 But most people If they were to go in and do it themselves, they would probably pay closer to $40,000. So I might go in with a list of repairs to my dual agent agent, who supposedly is representing me, too. And I would give them the repairs at that repair costs of the 40 K, even though I knew that I could get it done for about 20 or less, right? So why I would do that is because I want that property and I want them fighting for me, and sometimes I kind of use them and they don't know I'm using them. It just depends on how smart their cream. Maybe. I know that sounds bad, but it is what it is, man, and you just use those tools. But when you're negotiating prices, you do what you can. Now, when you have an agent in your pocket like Jack, when I see something, a lot of times I don't even play these games. I just call Jack because I don't want to have to go back and forth and back and forth and all these calls and stuff. I'll just call Jack and as C. I want to look at this property hears this and here's that. And I just want Jack to take care of it. And that's how I do a lot of properties now because I would just rather not play this game and have Jack to all the paperwork And have Jack do all the due diligence for me because Jack is going to make sure the home inspection gets done. Jack is going to make sure that the title company is running on track. Jack is gonna make sure that the money is an escrow that s grows open. That title company is on track that there's no leans against property. He's going to make sure all that stuff gets done that he knows I need to get done. And if you got somebody is good as Jack than your okay. If you got some newbie, you might not be okay, and you might have to be checking them. And I like having somebody who knows what the heck they're doing. And so he's my guy, especially here in the Valley. I would definitely call Jack for anything. I would definitely call Jack for anything, So I want
have a real estate agent that you know that you love that is really good with numbers and that they know the area. They know the market. They know the rents, they know the numbers. They know the other agents, they have a reputation. Jack is that kind of guy. I mean, he's just really is. So you can't steal him from me. Even if you're in the Valley, Don't steal Jack from me because he's my guy. Okay, but Jack Burns okay with ah Realty one love, Jack. All right. Now, the next person on our team is going to be our title company and our title agents. I have agents inside different title companies that I absolutely love. And I trust a lot
when people are selling homes, they have a title company in mind. And a lot of times, when I make offers, I don't like little title cos I really don't because they just first of all, they don't get things done in a timely manner. They don't check things off like Ideo I know and like my title agents. So when I'm up in the valley, I have a couple of different title companies that I use. And inside each of those title companies, I have one agent I specifically asked for. And sometimes they Well, most of the time they have an assistant, So I will talk to their assistant to, But you want to make sure that you have a title company that you can trust. Now remember, And this is very important note. Depending on the state that you're in, you might need a real estate attorney in the state of Arizona. We don't and I love that. In other states, you have to have a real estate attorney. I find that those states are just It's such bullshit. Those real estate attorneys charge you a shitload of money for things that hey titled company can dio. So I'm actually like super highly against states that have real estate attorneys. And I know that probably sounds bad, especially because my son just married a new attorney and I have a good friend who is an attorney, you know, clearly done stuff. It's not that I'm against attorneys. I'm against people not doing a lot of work in charging a lot of money for it, you know, entitled agencies in the State of Arizona do the same thing that a real estate attorney does for a lot less money in a lot quicker turnaround time with a lot less paperwork and red tape. Just, you know, those states drive me absolutely crazy. I've purchased properties and states with real estate attorneys, and every time I end up getting frustrated because of some brick and attorney and their bullshit stuff, it's easy, and it should be easy, but they make it way more complicated than it needs to. So good luck to you if you're in one of those tastes where you have to have a real estate attorney, I pity you. You should come to a great state like Arizona, where you don't have to have all that come to a state where you just can deal with title company because we've got great title companies here, and as long as it's a good title company, you know they got your back, you know you're gonna get your certificates and you're gonna get everything in a timely manner. They're gonna make sure there's no leans on the property. They're going to do their title research, and they're gonna make sure that you are safe and secure. I love a good title company. There are bad title companies, and what can happen when you have a bad title company is things can get lost, especially when you're doing host selling. So I want to encourage you. If you ever think about flipping properties or doing any kind of whole selling to find yourself a really good title company because title company can make all the difference in the world, they will make sure that your seller has put their deposit down, that it's not refundable. I mean, they will check everything and a really good title company to. We'll take whatever contract you come up with. It doesn't have to be a standard contract from a realtor or anything. It just be a written contract, something that you wrote out, and they will make it nice, legal binding, and they will do all the stipulations that you put in it. A good title company can make any contract work and legal as long as you're willing to go with them and and they're going to tell you, you know, what about this is not legal. What needs to be fixed? I mean, these are the people that you really want to work with. So a good title company is really great. And if you live in one of those states that doesn't allow title companies to close on properties and you need a real estate attorney, then you're gonna have to find a really good real estate attorney. And I'm sure there's a bunch of them out there. I just don't know anything.
don't know any, but find them in your state, you can find them probably from talking to other real estate people. So go to your RIAS. Talk to people, see who they used, and they'll be able to help you out. The next person on our list is our home Inspector. It's really important to have a really good home, inspector. Or you can use your contractor. So I'm gonna give you, you know, number three and four for this 13 is going to be our home inspector. And four is our contractor. Now, some properties that I buy, I might not go and get an inspection on. Okay, I might just have my contractor walk through with me and we might take and evaluate what repairs are necessary and we don't have an inspection done. I it We do that for a reason because we can make it so that we close quicker on a property number one cost us less Number two and number three. It's part of our negotiations strategy that the purchase is not based on any inspection. People who have properties that need to be fixed up. They love that because if somebody comes and makes an offer on their home for such and such price, but they base it on an inspection and they know there's a lot of stuff that's gonna come up on their inspection and then I go in and I don't have any inspection. I'm like, OK, I'm just buying it as is without an inspection. But I'm going in there with my guys and we still you can still have your due diligence period. You can still have your 10 days due diligence where you go and you might inspect the roof, or you might inspect something. You're not basing your offer on the inspection, but you still have that. You know, maybe you didn't know that. Oh, all the electric was stolen and ripped out of the walls, and your contractor goes up there and says, Holy shit. Guess what? You don't have any wiring? All the coppers been stolen. You're like, Oh, crap. You didn't know that you can still back out. You still can have that time, period. But you're not basing everything on in the inspection. Having a good home inspector is really valuable when you're first getting started because you probably won't have a contractor. And you're probably not super good at evaluating what needs to be fixed and what doesn't. So ah, home inspector is good. Especially when you're first getting started tohave, um, a really good home, inspector, so that you can make sure that you know what repairs need to be done. And so yes, yes, yes. Have a great home, inspector. Okay, like Chris and I said, we have contractors, and I used to have my dad, so we would go through and we, with my dad room with my contractors, would make a list of all the repairs that need to be done that we could find. And then we would go through and make them so same thing contractors or home inspectors. They're all going to work together to let you know what needs to be done. And that's going to be your numbers, people. This is all gonna be the stuff that you do during your due diligence period. So usually within we do 10 days on most sometimes seven days, sometimes four days, depending on how fast we're buying and what kind of negotiation were using. But if we know the price of all the repairs that need to be made, we can make way more intelligent and fast offer. And sometimes we could do it all cash with a quick close without home inspection. But home inspectors, Yes, yes, yes. You really want them on your team or a really good contractor. And you might have to really good sets of contractors because you might have to properties going at once, depending on your scenario. So that's number three, Home Inspector and number four, A really good contractor and a
contractor is guys like my dad. My dad was amazing. I could walk into house and I would say, Let's take these flat panel doors, Put six panel doors on them. I want to take thes switches and change them all over to toggle switches. Wanna pull up this cheap, shitty baseboards Put really nice baseboards, input new blinds and fans and And I would tell my dad, you know, the Flory and I want to get this done. This son, that the and my dad, he was like a savant, and he would just in his head, he could add it all up. And as I walked out of the property, he was like, OK, here's your list of this stuff that we're gonna do And here's what it's gonna cost. And it was amazing. I mean, he was almost always dead on. He was really, really good. You need a contractor like that, who's going to tell you and who can also notice different things. Now, I'm pretty good at walking into a place and going this wall might not be able to be moved, or we're gonna have to get a beam that goes across that and how much it's gonna cost. I know these things only because I've been doing it, but you might not. But if you have a great contractor, they're gonna be able to tell you you can't open up this wall because that's a load bearing wall. And if you do, you're gonna have to get a beam that goes from here to this wall, and it's gonna have to be this long, and that's gonna be an added expense of X amount, depending on the length of the beam. So just know that a really good contractor can save you a lot of money. They can tell you how to save money, doing certain specific repairs in certain specific ways. And they can also tell you all the costs that are going to be involved. And they might even be able to red flags. Situations that hate this looks a little fishy. There's a little bit of water here. I'm gonna have to investigate this. There's a little water damage there. There might be something wrong. They're going to notice things that you don't notice. They're really great to have.
is an appraiser. Appraisers are really great to know now. Different areas have different appraisers, but most of us who do real estate, we buy in the same areas and I buy and rent a lot of properties in the same areas so I can use the same appraisers and Once you get to know one appraiser, you know what they're looking for and you can have it all done. I do a lot of work for my appraisers, a lot of work. So I'll pull up the souls. I'll pull up pictures. I'll show them what comes I'm using. I'll show them the repairs, the list of repairs that I've done. I make a very detailed list of repairs, so they know all the work that we've put into the property. And what that does is it helps the appraiser make his valuation so he can say, Well, yeah, she might have picked it up for this much. But holy cow, look at the list of all the stuff that she's done in this property. She's increased the value of it by this. This this and this. So the higher property appraises for I mean, it's not like you're giving them anything, but I'm really, really on it when it comes to my appraisers. I like them to know all the work that I've done, like them to know all the properties. I'm basing it on in the area, and I like them to know that I know that these properties sold within the last six months and actually, the last three months, if I can possibly help it, depending on the area. So I like to give them the help that they need. But I also get the numbers that I'm looking for because I can trust that having one appraiser do all this stuff. You know, different appraisers give you different values so you can go into the same neighborhood. And if you use three different appraisers, you might get three different values on the same exact property. So using the same appraiser over and over again is very, very valuable. When it comes to investing, you know the person, you know what they dio and you can get it all done. An insurance agent. Oh, my gosh, I'm telling you, when I was buying property back before the big crash, when we were buying rental properties, it was so great, because in our state state farm was a great asset for me. I would just call up my insurance agent. I give them the new address, and I would say that I needed insurance. Insurance is extremely hard to buy in some states. Florida is a nightmare for home insurance and the reason realize they have storms. But they go through companies very, very quickly, and big companies have pulled out of those states. So depending on where you are having in finding a good insurance agent can be really tough. So you really, really want to do your due diligence when it comes to insurance. Now remember, when you're doing a short term rental, there's a lot of insurance companies like proper insure that will not only give you a short term rental insurance, but they will ensure the property as well. So it might be a little bit more, but you've got both businesses being handled. If I do do that, and when I do do that, what I dio is my real estate company will not pay the insurance. My short term rental company will. They'll write it off as an expense, and they cover it for the landlord. And then they write like a little thing going. We cover all your insurance. Here's the deal on May pay for it, and the reason why is it's basically one of those things that we do for any landlord when we're doing any rental arbitrage. It's one of the things that we dio. We say, Hey, look, we're not gonna have to call you. We've got our own maintenance guys and guess what? We're even going to pay your insurance homeowner's insurance for you, and they absolutely love that. So it's kind of a bonus, but we have a really good agent, and we know the same agents are in the same areas. So down in Tucson we have Oliver. He handles all our stuff over a proper insurer, but we've got different guys in different areas, so you're going to get to know your insurance people, and you're gonna be able to call them up and get a policy on a place all the time. Now, Remember, too, that there are different policies for different times. So in some states you just need one policy like I can call State Farm in the state of Arizona, and it doesn't matter if the property is empty and I'm fixing it up. It might be the same type of insurance, but in Florida, if the property is empty, it's one type of insurance. If it's being renovated, it's another type of insurance. If I have any of my stuff there that deletes and the gates all the insurance policy. So I mean, you have to be very, very careful about the type of insurance you have on your properties and went, so make sure you're checking those policies. Make sure they know what you're doing with that property. Like, right now, I'm in the middle of a Renno. I'm gonna be done at this time, and then we'll reevaluate it. Then it will be a short term rental place. Make sure that they know what you're doing with those properties. If it's empty and vacant, if it's rented out with a long term rental, if it's a short term rental, if it's being renovated, there's different types of insurance. You also want to make sure that anyone you hire has insurance. OK, because if you're hiring somebody to fix your property, they should have insurance so that they're covered in any sub contractors that they hired. They should have insurance as well. You always always, always want to see everybody's insurance coverage. It's just one of those things because God knows and God forbid, anything happens. Somebody falls off the roof of your house or something happens. You never want to be sued for that. You can only do that by making sure that everybody has all their employees covered. That's a part of your contract. Just making sure that's it. And you make sure that you see those contracts, OK? The last part of your team is basically your money, part the money team. So if you are getting a lot of bank loans, you might have a mortgage broker that you are working with. Or maybe you're working with your credit union. So you're working with her mortgage department, So depending on what you're doing, you're gonna have somebody working on those loans. Now, maybe you are using an investor, so you have private money so that investor would be your money for your bank or your properties that you're buying. Or maybe you're using your IRAs, right? Maybe you're using your IRAs to invest. You're never going to stay in those properties. You're keeping them arms length, and you're going through that. So you've got the custodians and the agents from equity trust or something. Those are the people that you work with. You've got your money agents. Okay, so I'm gonna put your mortgage company and the agents from the mortgage department of your bank or your credit union in their your investors, whether it's private money, maybe you're doing those bridge loans that we talked about, right? The bridge loans. See, you might need some hard money lenders. They do a lot of bridge loans, so it depends on who it is and then also your IRA custodians. So these air your money, guys there in your pocket as well. There are a part of your team, and you're gonna work with them often, and you've gotta work with them. Well, these are the people on your team. They're gonna help you get the money that you need to invest in the properties that you want to buy. And then hopefully, after a while, you're gonna get so much money saved up that it's just you that you might have a checkbook, Ira, or you might have your own account. But remember to keep your accounts separate, make sure that your business is each of your businesses have their own checking accounts and that you're never co mingling your funds. And the very last person on your money team who's going to do that and check out all that is your bookkeeper. Their bookkeeper is super important. They're going to make sure that everything is in order and they can even run a bunch of reports for you. So they're really important because whenever you're buying a new property, they can pull up the properties of the surrounding areas and say, Here's the income that they're pulling from a similar property two blocks away. Baba blah. So I mean, this is really important. And they're also keeping you on track and keeping you up to date, keeping all your accounts separate, keeping all the bills paid, keeping all the people paid. I mean bookkeepers there. So very important. They're part of your money team. They might not be the lending and the money coming
but they are definitely keeping the money legal part of your team, making sure that you're not co mingling your funds and you're not getting confused because
or not, sometimes you can get confused. And there's been times were I bought something with one credit card and then realized it was for a different property. And so then I had toe return that and put that money in and then write a little note and that's okay. You can make little mistakes as long as you correct it correctly ing right long as you correct it legally. And a bookkeeper is excellent for that. So that's our team. That's the episode for this week helping you to create your real estate investing team. And I want to remind you to that coming up, we're gonna have a webinar that's going to help you, Teoh. Put your business fourth as a very safe Corona virus free environment. So the webinar is free, the workbooks and all the sheets that you can download for your guests and things that you can do all of this, the marketing and everything. We're gonna cover everything for you. All of that is gonna be free. Just go to our website, short term rental revenue dot com and you'll be able to sign up for the webinar right there. You'll be ableto check in and check us out, and you'll have a lot of great free information right there, right there for your convenience. So God bless you guys. Thanks so much for listening. Next week we're going to go through the team. Members bore your short term rental business because, remember, we run those business separately. But if you could please go to the most convenient place that you can to leave us a review and leave, it's a five star review if you can, on iTunes or wherever you leave reviews. And we would greatly greatly appreciate that. God bless you. Have a great day, stay safe, go and grow.