Assembling a team of competent and licensed professionals will help you tremendously in your real estate investing business, allowing you to delegate and freeing up valuable time you need for running your business.
One of the most valuable resources you can have in this business is a good Property Manager who has been in the industry for a long time. They know the area and can give you an idea of the rents and history, and can also give referrals on other resources you may need such as subcontractors, reputable real estate professionals, and more. A Property Manager is generally responsible for maintaining and upgrading facilities while acting as a liaison between a property owner and tenants. In many cases, they are also responsible for attracting tenants to the property.
It is important in this business to have several Mortgage Experts on your team. When looking for a mortgage professional there are several important questions that you should ask to determine whether or not they are the right fit for you and your investment strategies.
- Will they do stated income or no-doc or non-verified lending?
- Will they lend against the appraised value rather than the purchase price?
- Will they do investor lending?
- Will they put together 100% packages?
- Do they have hard money?
Appraisals are necessary to determine a sales price or the amount of a loan that could be given on a property. A Real Estate Appraiser will become an integral part of your team as they are the go to person when the value of a property needs to be established. This will be very important for you, as you are looking for deals and calculating property value versus purchase price and want to have an accurate estimate of what a property is worth before you begin to create your deals.
A Title Company can provide you with property reports on properties you are looking at so you know in advance if there are problems with the title.
Real Estate Attorney
Real estate transactions are governed by federal statutes, as well as state statutory and common law, which is why it is imperative for you to do your research and find a good Real Estate Attorney to aid you in the legal process of investing. A qualified Real Estate Attorney can play a vital role in protecting your assets and making sure your interests are protected by reviewing contracts, advising you on legalities, protecting you from costly mistakes and other problems that could lead to litigation or other expensive legal action.
Hire an Accountant for your team who really knows the ins and outs of real estate and tax law, and who is ideally both a CPA and a Real Estate Investor themselves as they will have the same tax concerns as you. This is not someone who is just going to be doing your taxes at the end of the year; this is someone who you will want to strategize with who understands the impact of income taxes and capital gains as they relate to your specific business goals.
This should be a Vice President level executive with lending authority, not just the manager of a local branch. If borrowing a quick $10,000 on your signature allows you to take advantage of a great opportunity, you will be grateful for the time it took to cultivate this relationship.
The handyman will act as the general contractor for your rehab projects, someone you have tested and can trust to do good quality, honest work in a timely fashion. They can do estimates of costs for you to save you time on the front-end and to ensure profitability. They can also oversee the subcontractors.
As an investor it is important to have a variety of good contractors with competitive rates on hand that can handle anything from minor property repairs to complete remodeling projects. Some examples of contractors you may need are painters, flooring professionals, gardeners and roofers to start.
Real Estate Agent
This is someone who knows their way around the real estate market, is licensed to sell real estate and will be finding deals and handling a lot of paperwork for you. Your agent will write your offers, whether they find the deal or you do. Their incentive for working with you is the commissions they receive on your purchases and sales, so the more viable deals they find you to purchase, the more money they can make.