Real Estate Investment Requires A Team
I had a hard time at first with real estate investment. One of
the reasons was that I tended to be a "lone wolf," trying to do
too much myself. I've since learned that to really do well
investing in real estate, you need to have a team of people you
can trust and rely on. Here are some possible team members, and
what they need to be on the team.
1. Real estate agent. A licensed agent with experience in the
area you invest in and access to the MLS (Multiple Listing
Service), can be a great help. If she is a seller's agent, she
can still ethically bring the best deals to you once she knows
you're a serious buyer.
2. Real estate attorney. This should be someone familiar with
the laws and legal customs of your area, and have experience
with the type of deals you intend to do (If you are buying
rentals, she should be familiar with doing evictions, for
example.)
3. Accountant or bookkeeper. Keeping proper books for real
estate investments is getting more complicated with all the
tax-law changes. Find someone that understands the law, and what
you want.
4. Mortgage broker or banker. The first can offer many options,
but the second can make the loan decision. Each has their
advantages, and you could use both. In either case it's
important that they understand what you want (fast closings,
lower interest, corporate loans?)
5. Appraiser. Not only can a good appraiser give you an
accurate valuation of a property, but they should be able to
suggest ways in which you can raise the value of a property. Use
someone that will talk to you.
6. Inspector. In some areas it is easy to become an inspector
with little experience. It's best if you use one that is or used
to be a contractor, so he can find the problems AND give you
some idea of the cost of repairs.
7. Insurance agent. A good one will understand what you want,
and find ways to save you money. Insure all your properties with
one agent, and you're likely to have discounts available, and
better service.
8. Escrow officer. They will usually be with a closing company.
Look for someone that's efficient, and can explain things
clearly to both sides. If he is confused by a slightly creative
contract, he should educate easily or be replaced.
9. Cleaning person. Having a trusted person or crew ready means
a fast turn around when you buy a rental or rehab project.
10. Property manager. Be sure that the company you hire has
exerience, is responsive, and will have time when you call. A
good property manager can tell you BEFORE you buy, what you
should get for rent in a given area.
Real estate investment is less stressful and more profitable
with a good team on your side.