Those that have dedicated themselves to the field of real estate investing hold the prospect of entrepreneurship in high regards. Subsequently, the hard work and determination that compliments these individuals is typically rewarded accordingly. It is not a coincidence that many real estate wholesalers find themselves on the precipice of success. However, with success comes increased responsibility. Wholesalers intent on furthering their career must consider the possibility of forming a team. A time will come in their wholesaling endeavors when they are no longer awarded the opportunity of doing things on their own accord. Wholesaling can be very taxing on a single investor and stretch them thin. Increased business activity will inevitably require successful investors to build a wholesale team.
The nature of the wholesaling industry will require investors to assemble a team of individuals, as to accommodate the increased workload that accompanies expansion. Accordingly, building a wholesale team will allow a respective business to reach its full potential. According to James Kimmons, a consultant to real estate professionals at About.com, “You won’t find a mega-successful real estate investor without a carefully selected team helping them to make deals happen.”
As perhaps the most significant step an investor can take, in regards to the direction of their wholesaling career, expansion has become synonymous with both excitement and trepidation. While it offers the potential for unlimited opportunities, growing a business is accompanied by several risks. Many investors fear the idea of building a wholesale team because it is unfamiliar ground. Hesitation is a natural reaction when considering this direction, especially when they realize that growth involves risk.
Thankfully, there is a way in which the risk of building a wholesale team can be mitigated. Planning often gets neglected in the excitement of entrepreneurship, but successful wholesalers know that the more thought put into development, the better the end result. Place an emphasis on hiring the right individuals who will create and add the most value and contribute to the company’s culture.
By recognizing the importance of implementing systems and processes within your business, you will establish a sturdy foundation for your wholesale team.
Having The Right Mindset
Hiring someone to help you with a growing workload is the logical step in the progression of a successful business, but do not confuse wanting to hire someone with needing to hire someone. It is very important that you contemplate the objective you wish to achieve through building a wholesale team. That is to say, assembling a team is necessary if you are unable to accomplish individual tasks on your own. Conversely, do not hire anyone out of convenience to yourself. If you are unwilling to put forth the extra effort in menial tasks, you might not be ready for expansion.
For those that know they need to expand, but are reluctant to follow through, it is important to reevaluate your aspirations. The majority of investors who entered into this industry did so with the intentions of owning a business. However, if you are unwilling to expand and see building a wholesale team as a nuisance, you are essentially working a job. If your business depends on your involvement, you don’t own a business; you have a job. Remember that as a business owner, your goal is to create an entity that works for you, not the other way around.
Preparing Your Company For Growth
Assuming you have made the decision to expand and are interested in building a wholesale team, it is important to prepare your company for what is in store. Accordingly, building a wholesale team does not immediately remove you from the equation. While employees will make life easier, they are useless unless you are prepared for them.
Preparation is the most critical component for growing a business. Neglecting to establish a proper foundation can prevent your company from realizing its full potential. Your first priority should include the implementation of a timeline. Establish a time-frame for your expansion and do everything you can to control the pace of growth your company will follow. It is particularly dangerous to set unrealistic expectations and grow before you are ready. Unsustainable growth can lead to failure and even a premature exit from the industry.
Following the creation of a timeline, investors need to implement a series of systems that will allow them to reach their goal. Essentially, systems will serve as a road map for your entire company. Investors are advised to develop a system or procedure for every aspect of their company. This includes everything from the process of making a deal to building a wholesale team. It is even important to have a system for building systems. They should be detailed and meticulous in their approach, as they will determine the direction your career will go.
Having the proper systems in place will delineate roles and responsibilities for each individual you hire while building a wholesale team. However, before building a wholesale team, it is important to have proven systems in place. We can’t emphasize enough the importance of bringing a new hire into an organized business environment. The introduction of a new employee to an organized system will facilitate a faster learning experience and permit them to be more profitable in a shorter period of time.
Hiring Talented Team Members
Once you have established the proper foundation for your company and you have implemented the appropriate systems, you are ready to hire talented team members. Their presence alone will enable you to be more productive and focus your attention on more important aspects. The more time you are able to spend on income-producing tasks, the more successful your business will be.
There are six particular positions you need to include on your wholesale team. When building a wholesale team, you will want to consider hiring individuals to fill the following needs:
- 1.) Office Assistant
- 2.) Processor
- 3.) Marketing Director
- 4.) Acquisition Specialist
- 5.) Selling Specialist
- 6.) Runner
Avoiding the Pitfalls of Building a Wholesale Team
Again, building a wholesale team has the potential to propel your business to the next level. Profits that were previously impossible can be realized with relative ease if you hire the right individuals. However, expansion may coincide with several complications if you are not properly prepared for what is in store. Here are a few tips that will help you avoid some of the common pitfalls that many new investors encounter:
- Do not expand before you are ready.
- Do not expect immediate returns. Expansion takes time with new wholesale team members.
- Have patience.
- Invest in your business during the expansion phase.
- Delineate between time savers and income producers.
