Assemble Your Team
STEP 2
If you're new to the world of investing in real estate, it can often take a while to find knowledgeable, ethical professionals to invest with. For many, their investing journey is difficult and time-consuming. Many find most of their information from books, seminars, and learning from their own mistakes. With this, they risk that many crucial steps in the process are poorly documented and only shared through word-of-mouth. We see this often with so-called “real estate gurus”. Because of this lack of information, most new investor properties go neglected and mismanaged.
To paint an accurate picture for you – it is often difficult to find the top property managers in the industry; no easy way to find great contractors; no quick way to get multiple competing bids on renovations; and little transparency around how rental income should be reported and taxed. For a first-time investor, it's easy to feel lost and out of control. This is why you need to assemble your team!
By assembling your team I am referring to your investment team. These are not necessarily individuals who have a vested interest in your active investments, but they are critical to making your life easier and more profitable. These individuals will understand your investment strategy and your motivations and work to help you achieve your goals. There are many professionals you will need throughout your investment career and these next few are important when just getting started:
A Real Estate Agent
The first professional you should hire is a real estate agent in the area you are looking to invest in. By having an experienced real estate agent on your team, who knows your goals, you will have a consultant who can lead you through the purchasing and selling of your investment properties. They also have the contacts, the negotiation skills, and the knowledge of where to find the best deals for homes that you're looking for.
A Lender
Your lender will also be a vital addition to your team early on. Finding a lender who has experience working with investors and has competitive pricing can end up making or breaking a deal. The importance of having a lender who works with investors regularly is that they can partner with your real estate agent and the three of you can define the terms and conditions of the purchase and sale agreement to make sure the investment is viable for your goals.
A Property Manager
When you own several investment properties, it is impossible to oversee all aspects of each one. Plus, when you have a full-time job to worry about, you probably don’t have time to learn how to manage a rental property. In other words, if you are an investor, you need to hire a professional property manager to make sure your investment property is safe and sound at all times. Having a property manager can give you more time to focus on the things that matter most for your business: finding the next investment property, renovating it, finding a great tenant, making sure your current tenants are happy, and making money.
A CPA
Investing in real estate can be lucrative and exciting, but it's also complicated. There are many details in each property transaction, and they all add up to big amounts, which means you can really benefit from having an experienced CPA on your side when it comes tax season. Hiring a good CPA with experience of your investment strategy can save you thousands for your real estate investment business.
An Attorney
Real estate law covers many different areas of your property. Depending on the real estate you are investing in, you should speak with an attorney who specializes in real estate law for these reasons: 1. If you're buying investment property, your purchase could affect your legal status, taxes and finances in ways that are not obvious until you or a professional have reviewed them. 2. An attorney can help clarify all fees and costs associated with the transaction so you know what you're paying for upfront. 3. Hiring an attorney gives you an added level of protection if there's ever a dispute related to the property or purchase.
Share your thoughts, inquiries, or feedback with Austin. He’s excited to hear from passionate individuals like you!
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