4 Tips for Forming a Rockstar Real Estate Team
Building a real estate team is not for the faint of heart, but when done successfully, it can be a massive step forward toward generating passive income. To that end, we’ve brought you four important tips on how to build a real estate team. Read them over so that you have a better idea of the steps you need to take before bringing on other agents to work under you.
How to create an amazing real estate team
1. Make sure you’re ready.
For any real estate agent, the decision to form a team is a big one. In this case, not only do you have to be sure that you have enough leads coming in to support multiple agents, but you also have to make sure that you have enough knowledge and experience to be able to guide those who are working under you. With that in mind, before you bring on another real estate agent, it’s crucial to take the time to ensure that you’re ready for this next step of team building.
In order to do that, the first step is to look at your sales volume. As a rule of thumb, 40 transactions per year is considered to be the maximum number of transactions that one agent can successfully handle alone. If you are getting close to that number on a regular basis, it is probably time to consider bringing on some help. However, if you are still striving to hit this marker and have a while to go, you may want to wait a little bit before expanding into a real estate investing team.
Next, it’s important to take an honest look at your leadership skills. As a team leader, it will be up to you to handle many of the managerial tasks that come up during the course of doing business. In particular, you’ll need to know how to hire the right Personnel, how to distribute lead effectively, and how to let go of someone who isn’t a good fit. If you already have experience with these tasks, you may be ready to move to the next step. However, if real estate team building is all new to you, you may want to take some leadership training first.
2. Get your plans in order.
Above all, the key to running an effective real estate team is to have a plan in place for how you will make the team work. Specifically, you’ll want to take the time to decide on your ideal team structure, how roles and responsibilities will be distributed, and how each team member will be compensated for their work. Truthfully, no two team structures are exactly alike, so it will be up to you to make adjustments as you figure out how your team runs most smoothly, but having a plan in place will help you get started.
This is one area where it often makes sense to talk to someone who has had a similar experience. If there is another agent in your office who already has a team, you may want to take them out to lunch to pick their brain. Ask them any questions that you may have about building a team. Then, use their knowledge to help you create a plan that works to suit your business needs and your budget.
3. Bring on an administrative assistant.
Though it may seem counter-intuitive your first hire for your real estate team should not be a buyer’s agent. Instead, it should be an administrative assistant. Put simply, a real estate admin can help you create the systems that will make working together easier when you bring on other agents. For example, you’ll want to have a system in place for tracking and following up with new leads, as well as a system for handling all the paperwork that accumulates during the course of a transaction.
As the team leader, bringing on an admin will also get you used to tasks like managing an employee and handling payroll. When making this hire, your biggest consideration will often be whether or not to hire a licensed real estate assistant. The benefit to having a licensed assistant is that they will be able to discuss details of the transaction with third parties outside of your office. However, keep in mind that hiring someone who is licensed will often come with a higher price point.
4. Hire other agents for your real estate team.
Once you have your systems in place, the next step to building a team is to bring on a buyer’s agent. As the name suggests, hiring a buyer’s agent will allow you to focus solely on listings and lead generation while they focus on taking out buyers and submitting offers. While you’ll still be responsible for overseeing all of the transactions as team leader, bringing on a new agent is the first step toward taking some of the more simple real estate business off your plate and simultaneously generating more income. Remember, there are several steps required to add people to your team, interviews, background checks, real estate headshots, and it is important to be fully prepared for each step before they come.
Once you have a buyer’s agent working alongside you successfully, you may want to think about expanding your team into other roles as well. Some agents will hire a transaction coordinator to handle all of their convenience while others will look for a listing agent who can manage their listings while they take on a more managerial role.