Real Estate Team in 7
Being a real estate professional comes with a long list of responsibilities. There are a lot of things that need to be accomplished on a day-to-day basis in this industry. Finding it difficult to achieve all these things by yourself? It might be time to start thinking about how to build a real estate team of your own.
Below, you’ll find seven no-fail steps to building a successful real estate team.
1. Review your business and financials.
Just because you want your own real estate team doesn’t automatically mean now is the best time. Before you do anything, you must make sure your foundationーyour business and your financialsーcan support a team. Consider how many leads you’re currently generating. Can you scale this?
Build profit before building a team. A savings account and sustainable revenue are musts, and you must be certain your number of clientele can support a team before building one.
2. Establish core systems and processes.
Perfect your systems and processes before thinking about hiring more people. Make sure your systems are working successfully before training others to follow them. If you don’t already have a successful approach, you will end up with chaos. Your team will be confused, and they’ll constantly be asking questions in order to do their jobs. Questions you won’t necessarily have answers to.
Create systems and processes first, then build your team.
3. Envision your company culture.
Company culture can include values, ethics, goals, expectations, work environment, and the company mission. Knowing your company’s culture is vital. When every person within your company is aware of your expectations as a business, you’re much more likely to meet those expectations and provide your clients with a consistent experience, no matter who they’re dealing with. This can only happen when you’ve defined and instilled a clear company culture.
4. Create a plan for hiring and expansion.
Just because a person has their license and seems to be very eager, doesn’t mean they are the right fit for your business. Hiring the wrong person will cost you time and money and could cause problems within your company.
Before you hire, make a plan and decide the specifics of what you are looking for in a team member. Don’t just get people, get people with a purpose. Think about what types of team members will help your business prosper. Do you need an office assistant for organizational purposes, more agents to show homes and deal with clients, or do you need an in-house financials team member to crunch numbers?
Successful team members have a unique body of knowledge and bring their own fresh perspective to their sales practice. Prior work experience in other businesses makes them more well-rounded people.
5. Set realistic goals.
It’s a good idea to set yourself up to win by setting realistic goals. Unreachable goals create stress, frustration, and overwhelm because it’s impossible to achieve them. Instead, sit down and readjust your expectations and aspirations so you are not constantly stressed out and overwhelmed about not reaching them.
Readjusting your goals can keep you excited and moving forward instead of discouraged and stuck.
6. Delegate duties.
You will not get good results if you hire someone else just so you can just walk away from all your responsibilities. To stay on top of your business, you need to be involved and still oversee what is being done.
You’ll also get mixed results if you insist on always doing everything yourself. Delegating is a good thing. Passing off some duties that don’t have to be done by you gives you time to focus your attention on other aspects of the business, like growing your brand.
7. Measure and track KPIs.
Do not skip this step. Measuring and tracking your KPIs (key performance indicators) will allow you to measure the performance of your business in every area, including pinpointing your strengths and weaknesses within the business. These metrics can inform whether or not you need to hire more agents and can help you understand the trajectory of your real estate team ー are you set up to reach your goals?
Some great KPIs to track include:
- Payback Period
- Return on Investment (ROI)
- Tenant Turnover
- Average Rent Price Per Property
- Operating Expense Ratio
- Loan to Value (LTV) Ratio
- Average Mortgage Rate
- Equity to Value Ratio
If you’re wondering how to build a real estate team the right way, remember these steps. You can avoid a lot of problems and headaches if you do it correctly and at the right time.
If you are serious about building your own team and you feel ready, you can learn everything you need to know about sales through our online course, Sell It Like Serhant.