How To Build a Real Estate Team – Find a Handyman & Loan Officer

How To Build a Real Estate Team – Find a Handyman & Loan Officer

Are you ready for part two of how to
build your real estate power team? It’s coming your way right now. Okay. we are back. We’re teaching you how
to build your very own personal power team and in our last video, we talked
about how important it is to be rooted to freedom for money, time, peace of mind,
that can all come by doing real estate successfully and so the five additional
F’s that you’re going to need to build your power team, we talked in the last
video about finding the right kind of realtors that can find these good deals
and today, we’re talking about the second and third F which is fixed and fund. We
need someone to fix these homes and we need to make sure we’re funding them the
right way. – Okay, now again, we’re talking about building a
power team so this is you getting outside of putting on the tool belt
yourself and swinging the hammer, you want to find individuals who are
competent and know what they’re doing in an investor’s world. Now this is
different, we oftentimes talk about putting on the investor goggles and especially
when it comes to fixing up the property, you want to make sure that
you’re not wearing your consumer goggles. This isn’t a home that you’re going to move
into, this isn’t your dream home, you’re not fixing it up and making it to the
nines and putting in the granite and the gold fixtures and the, you know, the
golden port, golden porcelain, golden porcelain tub or whatever.
You’re not putting all the fancy things in it, you’re just putting in and
fixing it up to a certain level so that it is appropriate to go ahead and run
out. – This is the opposite of the approach of hiring an interior decorator who’s
going to look at the house and say, oh my gosh, there’s so much potential. I don’t
want that person setting foot in my property because this is all about
getting functional and tactical and so we’re looking, like Steven said, for a
competent repair person but does competent repair person actually go so
far even as a licensed contractor that’s bonded? Friends, that stuff already gets
really pricey and the reality is, you can either pay $60 an hour for someone to
swing a hammer and a nail or you can pay someone $15 an hour and so in the game,
understand that your margin for winning and success in real estate comes down to
getting good work done at a really good fair price, not at that really high level
$100 a foot mentality. – Yeah and I will say, this is a place where you really
want to get real. Don’t go to Google and just do a search. I’m sorry but
Google does not tell you who the very best, highest rated, most honest handy men
are but what you’re looking for, that’s what you
want to find. So the question here I think that probably is on everyone’s
mind when it comes to fixing a home is, Kris, how do you identify those type of
people? How do you find them and then how do you kind of get them in your
employ? – So this is really good. There’s a couple important things that I look for
when I do this and the first one that I look for is competence and then I
look for price. Let’s talk about competence. Competence is getting the
work done in a proper time frame, meaning quality over time. Though that is what
competency means and then the number two is price so you could literally hit
social media or the classifieds and just go out and get a minimum of three bits
so when you go in and you assess and you know what work needs to be done, get
three different eyeballs on it. Yes, it does take extra time to get them and to
meet with each one of them individually or as a group and to spend time but what
you’re really doing is building a team so as you find the person that you’re
going to work with long term, that means way less time but still getting the job done.
In the beginning, we’ve got to build the team and that takes a little bit so what
I want you to do is, I want you to look for people that probably broadcast
himself as handy men that have the ability to do everything from roofing
and flooring and cosmetic and things like that, some plumbing and some
electrical, that’s generally what you’re going to look for in a home. There’s someone
that usually possesses all of those abilities and have them come
out and get three different bids. The purpose of the three bids is to give
them all the same projects and you just have a chance to actually have them
compete in price against each other and what’s going to happen is, you’re probably
going to have a front-runner that’s going to do it for less than the other two.
When you find that person or you may need to get more bids until you find
that person, then you got to test their competency which is, can you do the work
at the quality I’m looking for in the timeframe? Both of those are really
really really important and I just want to throw in a little bonus here.. When you
pay these people, pay them half up front and do not pay the other half until the
job is completed and I’ll sometimes go one step further because handymen are
notorious for mismanaging their time. One week turns into four weeks astonishingly fast so what I’ll generally do is, if I agree
that the project is $4,000 and I pay them $2,000
upfront to cover their materials then they’re very motivated to make the
half of the money but what I let them know is, I’ll actually have them tell me
how long it’ll take it if they say two weeks and if that fits my budget is
reasonable, I’ll say, great. What will happen is, two weeks from now, on this day,
I’ll write you $2,000 check. If you you’ll get three days of leniency
but three days after that, I will be giving you an eighteen hundred dollar
check or a fifteen hundred dollar check which means that you actually get
penalized for time because guess who else is being penalized for time.. You. And
I like to pass that right on to them, it’s actually create. Now this is a
little bit of an aggressive stance but of works for me. – I want to take that a
little bit of a different angle because I think the concept is amazing, what
you’re talking about here and giving people some opportunities in learning
how to really build that power team appropriately. Most of this, when we’re
talking about handyman and and building the fix-it side of this of this equation,
you want to properly incentivize them, right? That’s what we’re talking about,
giving them a proper incentive to fix the home in a timely manner and to do it
in a certain way. Communication here is key. If you’re not appropriately
communicating with them, everything that you do want and everything that you
don’t want within the time frames that you want it then you’re doing them a
disservice and yourself a disservice. One of the things that I was
going to mention here that you can do and add in is, you can give them a bonus. You
know, you can work this into your budget so this doesn’t have to be
negotiated after the fact or it doesn’t have to eat into your profits
necessarily but you can you can say, look, I’m looking to get this job done, for
example, for $3,500 but if you get it done in the two week time frame,
I’ll give you an additional $500 so that just takes a little bit of different
angle, it’s kind of the same process, same concept but if you will do that, they’re
going to be way more likely to go to work for you, to work harder faster, to
make it better and give you their best and this is what you’re really
looking for. – And you’re going to really find out a lot about you and you’re going to
find out a lot about them. When it comes to finding a handyman and really doing
the whole fix-it part of the fix-it F in the whole system, is it starts with
assessing then it goes to interviewing the right person and then it goes to
management. Now the management means they’re the ones doing the work but
you’ve got to look over their shoulder and make sure that you’re checking up on
the progress, make sure they look they know that you care about the project and
that it’s going accordingly. Down the road, when you have a trusted handyman, I
call it people today and there is one conversation or even my manager has
it and right now, everything’s being done, no questions asked and they
know exactly what to do. So really, this is a rapport building period of time and
let them know, I’m going to be doing a lot more projects, there’s future projects on
the line, this is really important for these people so I’m really looking for a
good trusted relationship and trust for me comes down to honesty, it comes down
to quality and it comes down to timeframe. So Steven is absolutely right,
you can incentivize them with the carrot at the end but I also like to let them
know what might happen if we go over that time frame and if you’re ever going
to enforce a deadline, make sure they help create the deadline, that’s another
one of the big secrets when it comes to fixing. – Alright, the second part of this
video today is about funding and funding obviously is one of those really
important parts of the process. If you want to do real estate, you need the
appropriate funding. If you want to even fix the home in the right way, you need
the appropriate funding so this is a great great segue. – And I just want to
pause for a second because there’s three ways you could have funded this deal. You
could have taken Steven in my Lease Option course where we were training you
or we have trained you and you’re now part of our community and we’re teaching
how to find deals with no money and no credit and it’s already funded. You might
have taken our partner profits course and in that one we showed you how to
line up on partner who put their money up and and now that’s how you funded the
deal. Let’s assume for this video that we’re using traditional funding which
means we need to work with a loan officer, whether it’s for a partner’s
sake or for your own, generally with investment real estate, somebody needs to
put down a 20% down payment that can be funded from a 401k an IRA, from equity
and another property which on an average-size deal, you might be needing
$30,000 or $40,000 or $50,000 to do a real estate transaction
and you need to have the proper funding team which in the world of real estate
means you got to have a really gifted loan officer. Now let’s talk about loan
officers cause again, loan officers quite a lot like realtors are a dime a dozen,
they’re all over the place and there are so many different mortgage lenders and
mortgage brokerages and banks that are vying for your business, one of the
biggest things I think, this is the hugest, I think the biggest takeaway that
you can have here in the world of funding is make sure that you find a
lender or you find a mortgage or loan officer who
does the majority of their work with investors. Now if you’re going around and
you’re trying to get a loan, most places do have primary residence financing,
they’re loading on people’s first home or their primary residence.
That loan world is a lot different than investment financing, it really just is.
– And for those of you that don’t actually even know what we mean when we say loan
officer, right now if you bank a chase or whatever you go to bank or if
it’s a local credit union, that’s you interfacing directly with a bank. A loan
officer is an individual who interfaces with many banks and what they do is they
understand that all banks have different lending programs, they’re all a little
bit different, they’re all a little unique, they all offer slightly different
rates and not all loan officers are created equal. Some have done so much
investment portfolio lending, they work with so many banks and they do so many
deals that they they get these incredible volume rates. What that means
is, they do every month, they’re known for doing pushing so many new loans through
successfully and that they’re successfully marketing and finding
investors and people that need loans and they actually get them all done that
they start getting preferential treatment with the bank which means that
those loan officers will have their banks give you the investor even better
rates and even better deals so really the question is, how do you find a
good loan officer? Part of it is knowing what you want. You’re going to want to pull
out your pen and paper and you’re going to want to take some notes on what you need
when finding the right loan officer for your power team. – Awesome. So most people
when they get in started in real estate, they’re super rate conscious – Rate is
everything – and most loan officers are super rate conscious. – But Steven, let me ask you,
how much do you care about the rate? – I don’t care.
Well, that’s not true, we care a little bit but I only care in terms of, is it going
to help me to get my next deal? This is the difference between finding a
loan officer whose rate conscious as opposed to one that is more portfolio
minded and I want to talk about what that means here for just a second, alright.
The rate on the home, what we’re talking about is the percentage
rate, right. How much you’re actually paying to borrow that money and that
percentage rate is what we pay out in interest in the home so in
any mortgage payment, you’re paying a portion of it to the principal or
actually paying down the loan on the home and the other portion is being paid
towards the interest or that’s what the bank or the lender is making. Now so many
people are rate conscious because that rate consciousness is what’s going to
allow you to either pay more or pay less out over the life of that loan. The
problem with being so rate conscious is sometimes it gets you into this rut of
you might bypass your next deal in order to get a lower rate now but that might
stop your investment possibilities. If I’m going to get home number
three or four or five or whatever and I did home number one or two a certain way,
that may completely close the doors for more opportunity and so I’m looking for
a loan officer that’s going to open those doors for me.
– So when Steven talks about a loan officer instead of being rate conscious
that’s portfolio minded, what that means is, imagine that a loan officer is
working with ten banks and it’s like one big jigsaw puzzle and we’ve got to
figure out which banks to use in which order for which properties that are
being bought and you’re looking for an experienced loan officer that can help
you maximize your credit because once you’ve used it all up then we need to go
maximize somebody else’s credit and we’re always looking for maximizing
credit and doing it the most intelligent way so here are the three things that
you’re looking for when it comes to finding a loan officer.. Number one, they
need to specialize in investment lending instead of primary residence.
Write that down, investment lending expertise. Number two,
portfolio minded means that they work with it probably at least five to ten
banks on a regular basis and you’ll find that most loan officers do not work for
a number of different banks because they’re not doing enough volume which
leads us to number three. We’re looking for a loan officer that pushes lots of
volume, they should be able to brag and say things like, “Oh yeah, last year I lend
it and helped put together tens of millions or hundreds of millions of
dollars worth of mortgages together on properties that we’ve done.” Okay, that
kind of volume, working with that many different banks specialize in investment
is a winner for you, that’s who you’re looking for on your team to be your loan
officer, to help you figure out how to secure the long term
with banks as you’re going from deal to deal to deal. So let’s summarize real
quick. In our first video, we talked about the power of freedom and we talked about
how you find the realtor that’s going to help you find the deals, now we’re
talking about fixing and funding and today, we’ve talked about what you need
to do as far as vetting and finding the right kind of handyman to help do the
work on the business we also talked about what you need to look for when
finding the right loan officer that’s going to help you fund the deal and that
takes us through finding, fixing and funding. In our next video, we’re going to
hit two very key elements, we’re going to talk about how you fill the home with
the right property manager and then how you follow up on the home so that you
get it to continue building and maximizing your portfolio with time and
again, friends, this whole series is all about how you build a portfolio and how
you build a power team and I want to just say something.. Steven was the first
person that I brought on to my personal power team when I got started. Steven has
served in a variety of capacities and now he helps me run our entire massive
real estate empire. We’ve got you, our Limitless Wealth YouTube nation on the
line watching our videos and reaching out to us and now what we’re doing is,
we’re building your real estate power portfolios and if you want to know how
to tap into more than just watching these videos, if you want to know how to
pop tap into our power team then go ahead and click the link up here and
click the option where you get a chance to talk with Steven, myself or a member
of our team who can lay out all the details, show you our deals where we’re
investing how, we’ll introduce you to our power team and we’ll show you how you
can leverage our power, our entire power team to build your portfolio. This is
exactly how I built my original real estate power team that has now led to a
system of nearly a billion dollars worth of real estate. So excited tomorrow to
bring you the next and final concluding segment on how you build your very own
real estate power team.

10 thoughts on “How To Build a Real Estate Team – Find a Handyman & Loan Officer

  1. You guys should start a Podcast together. As always, great video!

  2. Nice. I appreciate the value shared

  3. We try to build relationships and price isn't the only component. Right now we don't have much leverage on price, but we do have leverage on our relationships. Someday we'll have leverage over price, but now that's not our market. The better our trades do the better we do.

  4. FINALLY!! Thanks for creating this series, i`ve been looking into this information to be able to incorporate this business into my life. Great video structure and information! Great value, cant wait for more!

  5. You guys have great enthusiasm. Very helpful.

  6. What is the course video to get money with out credit I can not find it thanks

  7. Batman and robin

  8. Why does this video only have 4,000 views? It is their most valuable video besides their economic breakdown video

  9. Hi Kris. Excellent imformation i love it. I have a question. I fill a bankrupcy chapter 7 at the beginning of 2018. How difficult will be for me to find a lender for my deals? Thanks

  10. I am a new subscribers and new to real estate. Thank you for putting this video up. This helps so much because I have been trying to just
    do everything myself. Another great video. Thanks Again

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