We all know to invest in property it’s a team work and not a solo show. So it’s important to choose the right team members around you while you’re on the property journey to ensure they help you towards moving to your goal.
The issue I had early days was that we would take other investors referral of team members without doing our due diligence. It builds on the high level of trust established between you and the investment team members you have around you. So logically you would take their referrals as granted as well.
But as some of you would know from my story earlier – we’ve experienced where a referred builder took the deposit for a piece of agreed renovation work and simply vanished. The deposit was not significant (only about $4K) but it did ruin my original plan where the property would have the work completed and ready for rent prior to X’mas.
I couldn’t find another builder to turnaround quickly, and I couldn’t secure a tenant being so close to X’mas period, so it ended up being a prolonged period of vacancy into the new year.
So what did I learn out of this experience?
- Always validate the team member’s credentials. Look them up on authorities websites to see if they’re legit
Because of the high level trust my PM has built with me back then, I took her recommendation for granted without doing my own due diligence on the builder’s licenses. Apparently this builder has been a pro fraudster for a number of times now, and was able to get away with it every time. Check, check and triple check!
- Check the referred person with other fellow investors
The referred person could have a commercial agreement with your PM, Accountant, Broker and so on so it’s best to validate from other investors who have worked with the person before. If you’re getting consistent positive feedback about the person’s work then it’ll minimize your risk of picking a dud team member.
I find Property Chat meetup really useful in this instance. Other investors are always open and willing to share who they use and what their experiences are like so if I was to do it again I would run past the Property Chat community first.
As always, if you have any questions about any of the above content feel free to leave a comment or contact us directly.