Real estate investments can be time demanding but having the right team in place can make the investor’s life easier. It takes time to build a dream team but it’s well worth the effort. A real estate investment team is able to lend better advice to investors they constantly work with, opposed to ones they have only met a few times.
Many investors choose to build a team around them because they see the benefits of surrounding themselves with professionals with experiences they lack. Investors aren’t required to know the answer to every question, but it’s important that they know where they can find the answers they need. Asking the right people can help investors avoid costly mistakes. As the relationships between the investment team grows, they will begin to anticipate questions their investor hadn’t even thought to ask. With an investment team, the pool of knowledge available to the investor is greater and can help the investor receive a better ROI than a competitor with less experience. Surrounding yourself with an effective and knowledgeable team is essential for building a profit from a real estate investment.
Here are 7 key professionals an investor should include in their real estate investment team:
1. Real Estate Agent
There are many benefits for investors who include a real estate agent in their investment team. Real estate agents know a lot about their local market, are connected with their communities, and are able to access MLS listings at any time of the day. Depending on what goals the investor has set for themselves, an agent can be the first to view potential real estate investment opportunities before they are made available to buyers. If an investor plans to fix and flip, a real estate agent can bring more potential buyers and shorten the normal turnaround time when it comes time to sell. Real estate agents have access to buyers and will be able to answer any real estate questions an investor has.
An accountant is a vital component to a real estate investment team. Investing in real estate is a business and organized financials are not only needed, but also a great opportunity to gain a deeper understanding of what is happening financially to the investment property. Accurate and up to date books can help an investor determine if the investment is profitable, when the best time to sell would be, and what problems the rental property has. An accountant can notify investors when financial problems arise so that they can be addressed quickly. Recruiting an accountant with some real estate experience or who is interested in the market is an added bonus as they will likely be able to understand how to run an investment and give a different perspective about market trends.
There are many benefits to including a real estate lawyer in your investment team. They can set up the appropriate legal structure for an investor to follow, can handle contracts and leases with ease, and can offer sound legal advice.
Quality legal work is important when it comes to buying, selling, and owning real estate. A good lawyer is essential to any investor who wishes to avoid making any costly mistakes, especially when it comes to larger investments. A lawyer will be able to answer any law related questions an investor will have and they can notify an investor when the laws change. Lawyers protect their clients and will be needed if outside investors are involved.
4. Property Manager
An investor’s time is valuable. While an investor is likely capable of managing their rental properties, investors that choose to delegate these responsibilities to an experienced property manager can dedicate more of their time doing the things they want to do. A property manager handles tenant screening, rent collections, property marketing, and any tenants related problems. Recruiting a property manager will help free up an investor’s time so they can focus on building their real estate portfolio.
5. Mortgage Broker
Mortgages are complicated and time consuming, but not to someone who works with them all day. Mortgage brokers are able to handle all the paperwork, negotiate with the lenders, and offer well-informed expert advice. As an added bonus, a mortgage broker that has already established a working relationship with an investor will be able to anticipate what the investor will need from their mortgages and can catch all the important details an investor overlooked.
6. Insurance Broker
Insurance is incredibly important for a real estate investor but can be time-consuming for someone who isn’t intimate with the insurance world. The time it takes for an investor to shop around for the best coverage and deals can be reduced significantly by using an insurance broker. They can also answer any insurance questions an investor will have.
Brokers are able to advocate on an investors behalf to insurers, regulators, and the government. Should a settlement be required, a broker can help guide the investor through the process. Insurance brokers are required by law to earn extra education credits every year so that they are up to date on the goings on in the insurance industry. Investors that include insurance brokers on their team can take advantage of any recommendation or advice their broker gives them.
7. Tradesman/ Handyman
Handymen possess a unique set of skills that most investors don’t. While investors are continuously researching strategies and other financial tips to up their investment game, it’s the same way for a handyman. They spend their days fixing leaky faucets, shingling roofs, replacing burst pipes, and more. An experienced handyman will likely have limitations to their expertise (Ie. no experience with electrical work) but can still offer expert advice on the project at hand or even recommend someone else they know and trust. Including a talented tradesman on your investment team is important for any investor who wants to keep their investment in tiptop shape.
Real estate investors need to consider the value of their time. Delegating is a useful strategy for investors who want to spend more of their time building their portfolios and honing their skills. Investors need to determine whether the time they spend on smaller tasks is benefitting or hindering their goals. An investment property is a business and an investor needs to consider their time as an asset.
Investing in real estate is a team effort and an investor that surrounds themselves with motivated and experienced team members will be able to maximize their impact in the real estate world. A real estate investment team will ensure the investor has the best possible experience with their real estate investment property. A real estate investment team takes time to build and establish but the time and effort spent in developing these relationships will pay off in the end.
Joining a real estate investment group can help lead you in the right direction. Check out local listings near you, or Titan Investment Real Estate if you are the GTA.