It always amazes me how many people claim to know it all. I certainly don’t, nor will I ever. In fact, learning is by far the neatest part of my job. Alexis and I spend a large amount of our income on education. But more importantly we spend most of our time listening. Learning from the doers who call us daily. By operating Daily Default Infoservice we get a chance to regularly visit with most of the professional real estate buyers, our long-term subscribers, in California. The information they share makes Alexis and I uniquely aware of what is currently working in the markets of California.
One thing all the true professional buyers credit with their success is their team. A crew of professionals they can go to when they don’t know the answer. It was a member of my team who made me see the importance of my team. In this issue, James Freeman, who does most of my law work, discusses note buying. Not only did I learn a lot from this story, so did Mr. Freeman.
James Freeman is not a neophyte in the practice of Real Estate Law. His experience is rarely matched in California. He draws from this experience with every professional act. However, he does not know at the top of his head every fact he put in his story. Freeman has a group of other professionals, each an expert in a field of law – tax, bankruptcy, etc. His pondering this time led him to a question regarding bankruptcy. He called his bankruptcy friend. He quickly had his answer.
And there lies the key, Freeman could spend his time scanning law books for obscure answers, but instead he calls upon his professional team. He does not need to know everything about everything, he just needs to know what he does not know and where to find it.
Everyday I get calls from people looking for knowledge. Ironically, they are from people doing quite well in this business already. I also get a lot of calls from people who say, “I already know what to do, do you have a free list?” Do these people not know what they don’t know? By asking for a free list they are showing their ignorance.
To learn this business you must admit your ignorance. Let me show you a few pieces of my team and what I like about each:
- List Service: Must be fast, accurate and helpful with the county recordings regarding foreclosure notices and ownership. I look to their staff for information on what is working in the business and as a source for possible team member referrals. Daily Default is the best.
Comparable Sale Service: Must have data and software that accurately reflects current sales and values. I like a service that offers CD-ROM service and backs it up with on-line access. I suggest Experian.
Mentor: This has evolved for me and now includes a group of more then 20 people. Each helps with a slightly different specialty covering me professionally and spiritually. Don’t ever get around a mentor that does not believe you can do it! Bruce Norris, Jim Rohn, Harvey McGee are my biggest influence.
Contractor: I use Neil Richardson and I like him. Neil seems to always be available to walk a house with me, when the work needed is above the norm. He gives a quick bid. Often gives advice on a different ways to add value. And most importantly, he understands how what I am trying to do – make a good profit.
Appraiser: A lot of people don’t include this guy, part of the “I know what a property is worth” believers. Well so do I, but… My appraiser, Mike McAnich, gives me “quickie guestimates” for free. He lets me suggest possible comps (although I’ve never found better ones than his). This allows me to insure my buyer gets the maximum loan off my top resale price.
Termite Inspector: Most are crooks. I’ve never had two look at the same property and get the same answer. In fact one time the people I bought the property from thought it had $19,000 in termite repairs needed. I fixed it for less than $3,000. I’m still looking for the perfect one.
Realtor: The value a good Realtor can bring is immeasurable, but I’ll leave that for Bruce Norris to explain. We have dozens that bring us deals. Their names shall remain anonymous.
Accountant: I want to pay every cent of tax I owe, but not one more. My accountant is a trivia wizard with tax issues and has exposed me to concepts where I know I am paying honestly, not excessively. He is also a fraternity brother and one of my closest friends. He lives and practices in Phoenix, Arizona.
Lender: I have two of these guys. One, Bob Rosenau, private lender, who loans me money in a day or two. And two, Doug Hallstrom, mortgage broker, who will work with my buyer prospects, attempting to qualify the unqualifyable without much of a complaint.
You are now a professional real estate buyer. Go out and find your team. Find an attorney, an accountant, a contractor, a Realtor, a termite inspector, an appraiser, a loan guy, a gardener, a mentor, any professional that can help you do your business better. Oh, three more things about teams. One, it helps when you like them personally. Two, pay them quickly if you expect them to stay with you. Three, don’t waste their time.
This where you need to know what you don’t know. I get laughs when I use this phrase, but nothing could be truer. Back to Freeman and his research. A lesser attorney would not have seen the possible risk that Freeman thought bankruptcy might cause. His knowledge and trained thought process exposes possibilities of risk. Some risks he knows how to minimize. Others he doesn’t even know if they are real. His team is there to help assess and minimize his fears.
In property buying it is the same. Your knowledge and trained thought process exposes possibilities of profit. Some profits will be obvious. Other profits, only after review by your team, will you know how to maximize.
My termite education and success above is an example. We would not have bought that house unless our offer took into account a lower termite. Our contractor and termite inspector came up with a solution the current owner (or I) did not see. My team made me money.
But I had to know that termite inspections could border on fraudulence. I had to know that there are other ways to look at problems. And I had to know where to find the information I needed.What I want you to get from this article is that nobody knows it all. What anybody can do is surround themselves with people who know what they don’t. And anybody can educate themselves on how to know what they don’t know.
