How to Assemble Your Dream Team as a Real Estate Investor
Ever heard the adage “Teamwork makes the dream work”? It’s no cliché that without a strong team, you’ll struggle or be unable to realize your goals. And nowhere is this more evident than in real estate investing.
Many tend to view investing as a solitary undertaking. But given the complexities involved, trying to carry the entire load on your back is impossible! That’s why it’s critical to have professionals you can turn to who are experts in their respective specialties. Not only does this prevent you from stretching yourself too thin, but it allows you to focus on what matters most to you as a real estate investor: building capital.
At the end of the day, there’s no shame in admitting that you don’t know everything. No one does. And that’s where your dynamic team members come in.
The importance of being able to tap into their knowledge and experience simply cannot be overstated.
Choosing the Right People to Join You
Okay, so you recognize the value of working with a team of dedicated, informed professionals and are ready to move forward. How do you now go about building a team that works for you?
For starters, you’ll want to do your due diligence. Get referrals from people you trust. Search online for highly rated professionals in your area who have at least a few years of experience working with investors under their belt. Conduct interviews with these individuals to ensure you’re on the same page. Both parties should view the arrangement as mutually beneficial and be interested in cultivating a durable, long-term relationship.
Of course, financial considerations are important as well. If you’re new to the investing arena, you might opt for someone who brings less experience to the table but also charges less. Or, as a more seasoned investor, you may be inclined toward spending more in order to secure a deep well of talent and expertise.
Once you begin building the group, your new team members can in turn provide referrals of their own. It’s always wise to have a few backups in each area should your first choice be unavailable when you need them. And if you find that over time a given relationship just isn’t meeting your expectations, it’s best to consider alternatives rather than waste your precious time and money.
Surrounding yourself with knowledgeable professionals in key areas ranging from property management to insurance will help you save time and money over the long haul.
Who Should Be Included in Your Team?
Your team undoubtedly plays an integral role in the success of your business. Having the right people in place in order to help you meet everyday demands can mean the difference between a venture that flourishes or one that fizzles out entirely. The importance of being able to tap into their knowledge and experience simply cannot be overstated. Among those who should comprise your team are these invaluable professionals:
1. Real Estate Agent
As a real estate investor, generating leads is the lifeblood of your business, and who better to provide them than an agent? You simply can’t expand your business unless deals are trickling in. Armed with access to the MLS, a deep knowledge of the local housing market, and helpful connections, an agent can point you to attractive real estate investment opportunities, including off-market deals. Not to mention that a realtor will assist you in writing contracts and setting up property listings.
2. Title Company
A good title company is indispensable to you as a real estate investor. It will perform a title search on a property to confirm that the seller is its legal owner and that there are no existing liens against the property. In addition, the company will provide title insurance to protect you from financial losses should any errors or omissions in the title search come to light later on. The title company also acts as a neutral third party during closing, handling all of the paperwork and ensuring a smooth process throughout.
3. Accountant/Financial Expert
Reining in expenses is essential to remaining profitable, and you’ll need a numbers guru in your corner seeing to it that your business stays on sound financial footing. Consider enlisting an experienced Certified Public Accountant (CPA) to manage your financial records and ensure you’re capitalizing on valuable tax deductions.
4. Insurance Agent
Insurance can be a true lifesaver when disaster strikes. As a real estate investor, property insurance protects your properties in the event of a fire, flood, or another catastrophic event. An agent will help you procure liability insurance, which covers the cost of injury and property damage claims against a business.
5. Property Manager
Don’t want the hassle of fielding late-night calls from cranky tenants grumbling that a pipe has burst? Would you rather leave rent collection, tenant screenings, scheduled maintenance, and other time-sapping aspects of property management to someone else? A property manager can take care of all this for you, essentially leaving you with more time and energy to focus on pressing investment matters.
6. Real Estate Attorney
With everything on your plate, you don’t have the time to keep abreast of the latest property laws. An experienced attorney will not only help you set up a legal entity for your business but review contracts and other significant legal documents before you close on a deal. Without an experienced lawyer at your disposal, you expose yourself to lawsuits that can effectively derail your business.
Keep in mind, however, that building a dream team cannot be done overnight.
A Solid Real Estate Investing Team is Priceless
Surrounding yourself with knowledgeable professionals in key areas ranging from property management to insurance will help you save time and money over the long haul. These individuals can add tremendous value to your business and help you attain success much more quickly than you ever could on your own. Keep in mind, however, that building a dream team cannot be done overnight. It takes considerable time and effort, and you may have to cycle through a couple of options before making a final decision. As you gradually work to put the proper pieces in place, be sure to do your homework in finding people who fit your real estate goals and display a genuine interest in nurturing a fruitful, long-lasting business relationship.