Hiring Help: 7 Questions Investors
Must Ask Professional Advisors
Welcome to the first issue of Profiting From Real Estate Investments, a newsletter published by HomeVestors of America, Inc., expressly for real estate investors. The newsletter includes useful ideas and information for new as well as seasoned investors. The newsletter is free. We are sending it to you because you submitted your name and email address to our Investor List. You may unsubscribe from the newsletter at any time by clicking on the link at the bottom of the page.
Why is HomeVestors providing a free newsletter to investors? For three reasons: (1) investors often depend on our franchisees to help them find properties; (2) we believe that helping our customers is good business; and (3) investors often make great franchisee candidates for HomeVestors.
If you have a question, comment, or an idea for our newsletter, please click here.
Ask These Questions Before Hiring Advisors
Hiring the right attorney, accountant, marketing consultant or other professional can be stressful even for a successful and experienced real estate investor. At stake is not just a one-time transaction, but rather an important business relationship that could last for many years and involve large sums of money.
Savvy investors ask prepared questions to better their chances of hiring the right professional for the job. These questions should be designed to go beyond the basics, elicit useful and interesting answers, and avoid cuing the candidate as to any perceived "right" responses. Here are seven that fit the bill:
- Even reputable advisors sometimes find themselves in dysfunctional business relationships through no fault of their own. These situations can be beneficial if the advisor learned some valuable lessons from the experience.
Ask: Have you ever been involved in a business relationship that was dysfunctional or ended in a quarrel? What went wrong, why did that happen and what did you learn from that experience?
- Most large professionals have "rainmakers" who bring in new business, but don't work on those accounts once they are signed up. The rainmaker may be a well-qualified professional, yet he or she functions primarily in a sales capacity. Savvy investors find out who taking care of their needs before they hire a firm.
Ask: Will you be handling the work on my account personally or will I be working with your associates or assistants or other professionals in your firm?
- Every professional faces conflicts of interest from time to time and while a conflict may not preclude hiring a particular advisor, it's in the client's interest to know such a conflict might exist and how it will be handled.
Ask: Do you work with any companies that could be my competitors and could create a conflict of interest if I were to use your services? How would you handle that situation to ensure that my interests would be protected?
- Professionals routinely face ethical dilemmas. The resolution of such situations can provide valuable lessons for the professional and insights into his or her ethical standards.
Ask: What was the most difficult ethical dilemma you've faced in your career, how did you resolve it and what did you learn from that experience?
- Few professionals have avoided ever making mistakes in their careers, yet there is a huge difference between a minor scrape and a major collision. While some people overcome major problems and continue to be productive professionals, it's common sense to find out what's lurking in an advisor's past before you hire him or her.
Ask: Have you ever been sued in a business capacity or been in any kind of trouble with any licensing or regulatory agency or ethics board? If so, how was that situation resolved?
- Professionals who appear to have similar credentials and experience may also have mastered specializations within their own discipline. These specializations can be a good clue to the candidate's interests and skills.
Ask: What is your forte within your profession? What services do you provide that best utilize your strengths?
- Some people prefer to communicate through e-mail while others are happier speaking on the telephone. Mismatched expectations can cause trouble even if the professional and the client are otherwise well-suited to each other.
Ask: What is your preferred means of communication? How quickly do you respond to telephone messages and e-mail? Are you available only during weekday business hours or are you also available during the evenings and on weekends?
Copyright 2006. Marcie Geffner. All rights reserved.
COMING NEXT ISSUE:
Well-maintained appliances can reduce tenant turnover and increase the resale value of the property. Find out more next issue!
Profiting from Real Estate Investments is a free newsletter published by HomeVestors of America, Inc.
HomeVestors of America
HomeVestors' approved vendor program is a huge asset for franchisees who seek professional advisors.
Find out if a HomeVestors franchise makes sense for you. Call 1-866-249-6932 or visit www.uglyhouses.com.
