Real estate investing can be a very lucrative way of making a living if prior homework is done. Knowledge and preparation is the key to your success or failure. Putting together your investor team before even thinking about looking at the first property will increase your chances of succeeding in this business. Your team should consist of:
All of the above play a key role in your success and finding the right match for the team should be carefully considered.
Below are some possible team members, and what they need to be on the team.
1. Real estate agent. An agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be a great help.
2. Real estate attorney. This person should be well-versed and experienced in laws and legal customs of your area or of the area in consideration, and with experience in the type of deals you intend to do
3. Accountant. Keeping books for real estate investments is getting more complicated with all the tax-law changes. The accountant chosen should be a person who understands the law, and the type of business the company is in.
4. Mortgage broker or mortgage banker. The first can offer many options, and the second can make the loan decision. Each has advantages, and you could use both. Either way, it's important they understand you would require fast closings, lower interest rates, and the like.
5. Real estate appraiser. A good appraiser gives an accurate valuation of a property, and they should be able to suggest ways in which one can raise the value of a property. Find someone that will talk to you.
6. Property inspector. Find one that is, or used to be, a contractor, so he can find the problems and give some idea of the cost of repairs.
7. Insurance agent. Good ones will understand what you want, and find ways to save money. Insure all your properties with one agent, and you're likely to have better service.
8. Escrow officer. They'll usually be with a closing company. Find someone that's efficient, and can explain things clearly to both sides. If he or she is confused by a slightly creative contract, he should educate easily or be replaced.
9. Cleaning person. Preferably, a team ready for a fast turn-around when you buy a rental or rehab project.
10. Property manager. Be sure that the company you hire has experience, is responsive, and will have time for you when you call. A good property manager can tell you what you should get for rent in a given area - BEFORE you buy.
The team overall should be proper in communicating the required aspects required for the building of the team and there by the business. Real estate investment is more profitable - and less stressful - with a good team on the side.
All of the above play a key role in your success and finding the right match for the team should be carefully considered.
Below are some possible team members, and what they need to be on the team.
1. Real estate agent. An agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be a great help.
2. Real estate attorney. This person should be well-versed and experienced in laws and legal customs of your area or of the area in consideration, and with experience in the type of deals you intend to do
3. Accountant. Keeping books for real estate investments is getting more complicated with all the tax-law changes. The accountant chosen should be a person who understands the law, and the type of business the company is in.
4. Mortgage broker or mortgage banker. The first can offer many options, and the second can make the loan decision. Each has advantages, and you could use both. Either way, it's important they understand you would require fast closings, lower interest rates, and the like.
5. Real estate appraiser. A good appraiser gives an accurate valuation of a property, and they should be able to suggest ways in which one can raise the value of a property. Find someone that will talk to you.
6. Property inspector. Find one that is, or used to be, a contractor, so he can find the problems and give some idea of the cost of repairs.
7. Insurance agent. Good ones will understand what you want, and find ways to save money. Insure all your properties with one agent, and you're likely to have better service.
8. Escrow officer. They'll usually be with a closing company. Find someone that's efficient, and can explain things clearly to both sides. If he or she is confused by a slightly creative contract, he should educate easily or be replaced.
9. Cleaning person. Preferably, a team ready for a fast turn-around when you buy a rental or rehab project.
10. Property manager. Be sure that the company you hire has experience, is responsive, and will have time for you when you call. A good property manager can tell you what you should get for rent in a given area - BEFORE you buy.
The team overall should be proper in communicating the required aspects required for the building of the team and there by the business. Real estate investment is more profitable - and less stressful - with a good team on the side.
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