As I thought about this I wanted to being up two types of capital in business.
First, monetary Capital. Of course monetary Capital is money that is available for an investment or business etc. Always a good thing to have, have connections to or other investors to work with. Part of our members lounge provides you with resources for that!
Second, one thing I feel really strongly about is Human Capital. Human Capital is huge. I fyou treat people like crap…why are they going to want to do anything good for you? I know people say “well, I’m paying them”, it doesnt give us the right to treat people like trash. My other favorite is “It isn’t personal, its business”. In my business, everything is personal. It’s a reflection of your character & integrity. When I see shows that treat their people (constractors/construction workers) I am left with a bad taste in my mouth & no longer pay attention. So remember, these people are a part of your business, treat them with respect like you would a buyer of your real estate.
Then, Human Capital is also important when working with other investors & vendors. Of course they are important, but where do you meet the right people for your business? In regards to rehabbing, I usually try to stay away form using family & friends. Unfortunately, too many bad experiences in that department has shown that you need to work with people who can see you as the one that is in charge of a project, people who do the job because it’s their job-not a hobby, not a second job etc-but, because that is their profession. How do you hire people who will come back & not leave the job in the middle of it? First off, if that is a concern utilize big box stores for their subcontractors, I’ve had more success in an area when I don’t know people using them, than when I try to hire out locally without a referral. I do try to use incentives for time or per job if I hire outside of big box stores, hopefully as a motivator, & that has worked in a lot of instances as well.
Keep in mind human capital is a part of your team, treat it as a valued commodity!