Can you imagine trying to take over every single aspect of a property i.e. sourcing, buying, renovating and then letting/selling.
Guess what that will result in:
You would have to go to law school and train to become a conveyancer, you have to be very good at DIY in order to be able to renovate a property.
And more, you have to be fairly good at advertising and marketing in order to first buy the property and then to sell or let the property out.
Why would you want to go through all of the pain, hassles and stress when you can just pay for someone’s expertise.
What’s the bottom line?
Power team members will help you to get to where you want to go a lot quicker than if you were to do everything yourself.
By having a team of professionals around you and by constantly working with them you will be able to get a lot more done in your time i.e. viewing properties, building your business.
Nothing like listening to a monk!!
A chit chat with property monks can only do good for your property investment journey. Join us now.
Aristotle got the idea of a power team spot on when he coined
“The whole is more than the sum of its parts”.
Albeit Aristotle probably wasn’t talking or thinking about buying property at that time but the phrase certainly has stood the test of time.
How do you find your power team members?
The internet, social media and personal recommendations are the best way to find your property power team.
However, these two options worked like a charm for me:
- Facebook property group recommendations and
- Property Network events.
But can you imagine
The crux is in the ask.
If you don’t ask, you don’t get. It’s that simple. Just ask for recommendation in the property groups on social media and network events.
Local knowledge is key for people who help you as part of your power team.
So, if I were you, I will look for people from local investment area for few roles.
Builders will be local to your area and so too will an estate and lettings agent.
Your local mortgage valuer/surveyor will ideally have a very good knowledge and understanding of your investment area.
And there are others who do not need to be from your local investment area like:
Your solicitor and accountant do not have to be local to your property investing area but should have extensive knowledge of property and ideally be property investors themselves.
Just make sure:
that you find people who have an extensive knowledge of property and ideally invest themselves.
Who should be part of your power team members?
Is this a very common question?
The answer is ‘it depends on your property investment strategy’.
For example, if you are buying a regular £70,000 buy to let property in Hull then it is very unlikely that you will need an architect, planning consultant or a commercial agent.
Rather than over complicating the ideologies and various strategies and scenarios, I have compiled a generic list of the 13 people you need in your property power team.
Here goes the list….
This is no surprise:
90% of deals go through Estate Agents.
If an agent knows what you are looking for and you build a good relationship with them, they can be a really useful source of deals for you.
You might be wondering:
You would get more deals if you go with experienced estate agents and agents who got that X-Factor.
But here’s the kicker:
Experience tells me that it is better to work with the smaller independent agents rather than the bigger chains.
Prove that you are reliable and you will make it onto the famed ‘black book’ where you may get access to deals that do not even make it to the market.
If you are looking at commercial conversions or land developments then a commercial agent will be better. However, estate agents do sometimes get bigger buildings and other opportunities so it is always worth staying in touch and maintaining that relationship.
Like Estate Agents, Commercial Agents can be an incredibly useful source for property deals.
if you are looking for commercial conversions or land developments. If you are looking at regular buy to lets then a commercial agent is not likely to be of much use.
Commercial agents can be easier to work with as they have a better understanding of how deals are structured and are more flexible than your high street estate agents.
As with estate agents, you want to build up a good relationship and make it onto their little ‘black book’.
Are you an investor who would like to manage your own properties?
Then you must read this without fail:
Lettings agents can form a key part by taking over more than half the work from you in exchange for about 10% of your rent for each property.
Besides, they own up to almost everything related to tenancy, legalities and property maintenance. Its more or less an auto pilot for you as an investor.
Take time to build the relationship with them and ask them questions and understand their processes. After all, they will be managing your properties so you will want to know that they know what they are doing.
They are a very good source of information for properties should their landlord base wish to sell up their properties or portfolio.
They are one of the first few whom one should approach to know more about the investment area, demand and supply and specifically areas to avoid.
A solicitor will help you to buy property by undertaking conveyancing and all the searches and legalities that come with it.
For your standard bread and butter buy to lets and HMO’s you can use a normal conveyancer.
For larger projects or more complex property purchases or agreements (such as a Lease Option) you will want to use a specialist solicitor. This is because a normal conveyancer may not know of a Lease Option or how they work.
Finding the right person for the job is crucial, especially as a specialist solicitor will be able to push the more complex deals forward.
Don’t be surprised when we say this:
Solicitors really are a case of trial and error.
Some solicitors are very slow and painful to work with whereas some are quick and efficient.
Once you have a solicitor that you get on well with and one who works diligently then keep hold of them! They will be worth their weight in gold.
Your property will more than likely need a refurbishment and who better to use than a local builder.
You will always want to try and get 3 quotes for the work you intend to do on a property without fail.
Some builders have reputations for being cowboys and we have all seen the horror stories in the news or on the television about people getting ripped off.
The easiest way to combat this is to know what you want in your property and to have a rough knowledge of trade prices for items such as kitchens, bathrooms and central heating systems etc.
A builder may be able to double up as a project manager and will therefore be able to sub-contract the various trades out such as electricians and plumbers.
This may sound crazy but it works:
Like it or not, your builder can be an all in one including being your refurbishment project manager and manage everything for you.
Never pay a builder 100% up front. Ideally you should pay in stages or pay on completion of a snagging list after the refurbishment has been completed.
For the smaller refurbishments, I personally like to pay 50% up front and then 50% on completion of a snagging list.
If you are looking at renovations, house extensions, commercial conversions, land developments or anything like that then an architect is essential.
They will be able to provide drawing and details of the projects, create workflow processes and even (sometimes) manage the build itself.
Architects are invaluable when it comes to this scale of work.
A good planning consultant will help you to get your projects through the quagmire, that is the British planning system.
If you are looking at commercial conversions, land or changes of use then you will need to work with a planning consultant.
Some planning consultants also have very good links with council officers. This can sometimes be worked to your advantage, especially if you have multiple projects and developments you are looking to do and get through planning.
Check out this tip:
Always ask your planning consultant for a recommendation for an architect.
If you have an architect and planning consultant that get on well with one another then chances are that your project will run a lot smoother.
Your planning consultant needs to be local to your investment area as they will have an extensive knowledge of what the local council wants or doesn’t want.
A mortgage valuer/surveyor will be the ones that value your property.
Its a fact:
9 times out of 10 your mortgage lender will pick your valuer and you have no say in the matter.
Sometimes a valuer/surveyor will wake up on the wrong side of the bed and it doesn’t matter what you do or say, your property is getting down valued.
This might not seem fair but it is the nature of the beast.
Treat your valuer/surveyor with respect. Show up on time, be pleasant, smile and ask them about their jobs, their day. Some small talk may just be the difference between a bad valuation and a good valuation.
One of the most important people you will have on your team. Tell your broker everything! Even the name of your pet! A mortgage broker will be able to pair you with the correct finance product for your purchase.
They will have good relationships with the lenders and will be able to help you get the necessary funding where possible.
A broker can only work with what you give them so you must tell them everything. This helps them when dealing with their lenders.
10Commercial Mortgage Broker
A commercial broker will have access to development finance and bridging companies. A commercial broker will also have access to products for (surprise surprise) commercial use such as shops, light industrial units and larger developments.
It is not necessary to use a commercial mortgage broker for just one regular buy to let property but you may want to use one for HMO products and anything bigger.
Tell your broker everything. The better equipped they are then the more they will be able to help you.
11 Property Accountant
Your property accountant will help you to set up your business. Your accountant should be able to do many activities such as payroll, general bookkeeping etc.
Your accountant him or herself is a property investor as well.
It is not essential but if they are then this only works in your favour as they will be taking care of their portfolios at the same time and will be up to date with regulations and changes to property legislation.
12Property Tax Planner
If you are looking to scale your business and run multiple properties and businesses then take advantage of the many free 1 hour sessions that property tax planners offer.
Although your accountant may be good they may not know everything about property tax. A specialist such as a property tax planner will and they will also be able to help you plan for the future.
They will be able to help you structure your business(s) effectively for the short, medium and long term.
13Property Sourcing Agent
If you live a long way away from your investment area and struggle to find property then you may want to consider using a property sourcing agent. As with anyone in your power team, it takes time to build up the relationship and credibility.
This may sound crazy but (no offense to majority build/sourcing teams but):
Sourcing agents (as with builders) sometimes have reputations for being cowboys and money grabbers.
Take your time to find someone reliable, trustworthy and who you feel you can get on well with.
A good, reputable sourcing agent will find properties that suit your criteria and pass them over to you for a fee. It is their job to find properties for investors like you and to get paid for doing so.
Again, the relationship here is crucial because not every property is always a ‘deal’ so you must know your area, know what you want and know the sourcing agent.
Relationships are the most important thing. Do not be like a bull in a china shop. You know what you want from your power team and they know what they want from you.
Take your time to build the relationships over time as they will more than likely bear fruit when you least expect it.
For example, if you are known for being a pleasant person to deal with and a quick payer then when you have an urgent purchase/renovation etc, it is more than likely that your power team members will want to work with you and put your purchase/renovation to the top of their priority list rather than argumentative and slow paying Dave from down the road.
Here is the bottom line:
Property is a people business. It is all about the relationships.
If you do not have a power team and would like access to our power team then get in touch with us and we will give you access to our power team.
[image source: wikimedia]