People You Should Have on Your Real Estate Investing Team
Real estate can be a big investment and is seldom done without a full panel of researchers and advisors. If you are interested in venturing into the illustrious world of property asset management, you need to first build a formidable team.
Key members you need to have on your team are:
1. A Competent Real Estate Agent
Having a real estate agent on your team can make the process of research and investment run smoothly. These agent(s) can help fill in any gaps in the information you might have. They can also help you avoid delays during the negotiation and acquisition procedure.
Realtors usually have niches according to location, property type, and price. Try to select a realtor who has some experience working with property investors and understands what you are looking for. This will ensure that both of you are on the same page and helps avoid any unnecessary lapse in communication.
2. A Knowledgeable Mortgage Broker
The most critical factor for successful investments is that of capital. A team that includes a broker with expertise in rental property loans can help you get a mortgage tailored to your requirements.
Long-term investments and the creation of a portfolio of real-estate assets require funding, and the right mortgage broker can get you the perfect deals for each investment you make.
3. A Real Estate Attorney
Picture this: You have acquired a great property and have rented it to the ideal tenant who pays rent on time. Then, an accident occurs, and they sue you for damages. You have to pay up an enormous amount of money just to clear the lawsuit.
To avoid the situation mentioned above, always have a real estate attorney on retainer. This way, you will be prepared beforehand to contest any lawsuit filed against you if that sort of situation ever occurs.
4. An Insurance Agent
The end of any investment, real estate or otherwise, is profit maximization. However, if accidents can occur, causing lawsuits to be filed against you, making you lose money instead. Other factors, such as wear and tear, maintenance, and repair, can also reduce the value of your property.
The risk of losing money can be mitigated, however, by recruiting a reliable property insurance agent. Solid property insurance can help cushion financial losses due to amortization, as well as help you escape lawsuits unscathed.
5. A Professional Accountant
Generally, hiring an accountant is essential because there are more items on your balance sheet, and you want to be mindful of your taxes. However, an accountant can help you do so much more than just balancing the books.
Hiring an accountant who is the best at what they do, such as a CFA, can also help you strategize your business and help you minimize taxes, thus maximizing the profit you make on your investments. An ideal candidate as your accountant would be a fellow investor who is well-aware of any changes in tax laws and can help with your write-offs as well.
6. A Property Inspector
After you have bought a property, you cannot flip it or rent it out right away. You need to check if there is any structural damage to the place, or if any health hazards are cropping up. For this, you need a professional property inspector who can identify any infrastructural inefficiency and give you an estimate of the time and money it might take to repair it.
Damages can range from leaky faucets, and clogged shower drains to more ominous problems such as mold.
7. A Contractor
You acknowledge that you have problems with your most recent real estate purchase. Now you need to solve them. To do this, you need to hire a reliable contractor and his (hopefully) small team of handymen. Prioritize the problems you have at hand, and fix the ones requiring immediate attention.
Ask him which issues need to be solved urgently and how much they would cost. Remember that you are already exceeding your budget, so do not spread your finances too thin.
8. A Maintenance Team
Your property has been rented for a solid deal, and both you and the occupants are satisfied with the arrangement. However, small tweaks and changes may need to be done from time to time. As you are the landlord, you will receive calls and be nagged about a fused bulb or a squeaky door. Try to hire a small team of handymen who can help take care of these types of nuisances straight away.