2 Super Important Team Members

Hey Moguls, I have a question for you...

How is your team-building process coming along?

It’s Cody Sperber back with you again, encouraging you to think of your team-building efforts as an ongoing process. As long as you’re in business, you’ll need to be building strong relationships with members of your team.

In this lesson, we’re looking at 2 team members who aren’t quite as flashy as some of the others on your power team. Some investors even see them as a little scary. In fact, some investors aren’t even sure of the distinctive roles they play in their business.

I’m talking about inspectors and appraisers. The confusion is understandable, because their roles are similar, but they’re not the same.

Your Friendly Inspector

“Uh oh. Here comes trouble…”

Is that your reaction when the inspector is on his way to your property?

If so, I have news for you. That inspector is not your enemy. Thinking of him in that way is a mistake that could lead to trouble in your future business transactions.

Rather the casting him as the one destined to bring you trouble, begin to look at that inspector as a type of mentor. It’s true. If you’re teachable, you can learn a lot from an inspector.

Did you know that many inspectors have been contractors or builders in the past (or are now)?

What does that tell you? That this guy probably knows what he’s doing.

Certification

When selecting the inspector that you will include on your team, ask about their certification. Several different certification programs are available for home inspectors; find out if your inspector is credentialed.

This is important for your protection and the protection of your business.

See, it’s the job of the inspector to do a detailed, hands-on evaluation. Generally, he examines all the accessible areas of the house including the attic and basement. He’s making sure there are no hidden problems.

Once he’s finished, be sure to ask for a copy of his checklist. Review it to ensure that all the important areas have, indeed, been covered.

Inspection Report Shows Issues

What if problems have been discovered?

This not a time to panic or get upset. Instead, ask the inspector for the best ways to address these problems.

What’s the best way to rectify the situation? And how can you prevent those problems from happening in the future? Always ask lots of questions, because this is a great learning opportunity.

If you’re upset or angry over the inspector’s report, you’ve just lost your professional stance. This could spoil future interchanges with this knowledgeable team member.

Remember, you want the inspector as your ally.

The Role of the Appraiser

This member of your team isn’t there to check out any structural problems. He’s not looking for defects or damage. His role is to establish the value of the property.

He’ll take a look at the prices of similar homes in the neighborhood that have sold recently. How do those prices line up with the seller’s asking price?

Most investors are familiar with this process—these are called comparables or comps.

How to Select Your Appraiser

There are qualifications that your appraiser should have. They should be MAI certified and should have experience in appraising the type of property that you’re looking at.

As with all your team members, you need to be kept in the loop. Don’t assume anything. This means you’ll want to have a close look at the properties used for the comps. Are the sales recent? (1 year or less.) And are these properties similar in structure, and in the same neighborhood as your subject property?

Check to make sure.

This team member should have specific knowledge of the real estate investing industry, and it would also be a big benefit if he’s familiar with the particular type of your subject house.

Don’t Pass Them By

It’s extremely important to have these 2 important team members in your contacts list so you can reach them quickly, if the need arises.

In my own business, I’ve used the information from an inspection report to lower my offer to a seller. This is just one of the many benefits of these team members.

And again, it’s crucial that your inspector and appraiser are under some type of certification association that holds them accountable for their work standards.

What are the laws in your state regarding licensing for these types of vocations? If you’re not sure, take the time to do the research.

One detail that’s easy to check is confirming that they at least have Errors and Omissions Insurance, and that they offer some type of guarantee on their work.

Be creative in how you plan to get to know these team members. How about a ride-along as they go about their work? In this way, you become the objective observer.

It’s not your property, so you’re not emotionally involved. You can learn a lot by seeing a property through their eyes. And, you can see how they interact with people, and how thorough they are while on the job.

Where to Find Inspectors and Appraisers

The #1 strategy for finding team members is asking for referrals. Talk to other investors and learn names of the inspectors and appraisers they use.

Next, talk to your investor-friendly real estate agent; they are constantly working with appraisers and inspectors and should have a good list that you can use.

Yet another resource is the closing agent you work with. They may have recommendations as well.

Building relationships with your team members is a key to your success. This will be especially true with your inspectors and appraisers. It won’t happen by accident; you must be intentional about building strong team relationships.