How to Build a Successful Real Estate Investing Team
Investing in real estate all alone is no easy task. You need to have an investment team. If you look around at any mega-successful real estate investor you’ll notice they have a great team of people around them.
The concept of a real estate investing team may be confusing at first, but after reading today’s guide, you’ll know which members you should be adding to your successful real estate investing team.
Let’s get started!
15 Members for Your Real Estate Investing Team
#1: Your Mortgage Broker
Before buying a home to live in or any investment real estate, you need to make friends with a mortgage broker. Your mortgage broker can help educate you on all the different financing methods available that can assist you in purchasing real estate.
Your mortgage broker can help you find the best deals on loans with good terms and interest rates as well as help you find solutions to financing real estate to make your investment business a success.
#2: Your Attorney
Every real estate investor should have an attorney on stand by to assist in legal matters related to real estate. Many investors will get started by using an attorney to set up a legal entity for their real estate investing business, such as a Limited Liability Company (LLC).
Attorney can also be there to review contracts and legal documents related to the sale of real estate, prior to closing on a deal. They can even help draft contracts custom to your needs, such as wholesale real estate contracts.
#3: Your Real Estate Agent
A realtor is important for being eyes and ears on a weekly basis of what’s going on in your local real estate market. They can be a resource for finding you investment properties as well as helping you price the market to learn home values in different neighborhoods and zip codes.
Since seller’s pay the real estate agent commissions, working with a buyer’s agent as a buyer is essentially free! And if you plan to sell lots of investment properties over time like a fix and flip business, you can negotiate lower commission rates with your agent to save you money on the sale of your investment property.
#4: Your Accountant
One of the best reasons to invest in real estate is all of the tax incentives the government offers to property owners. In additional, real estate investing can make people wealthy which is the main reason to have an account.
You need someone there to mange your accounting books and help you save money on taxes. You could argue a good real estate accountant is the most valuable member of your team.
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#5: Title Company Rep / Escrow Officer
If you find yourself buying and selling lots of real estate, you’ll want a good relationship with a title company. The title company will be used to close every transaction so getting to know their process and working out a system with them can save you time & money.
You can negotiate lower fees if you do high volume deals with them. They also can work with you to close on properties quickly, putting in rush orders for title work and electronic signing of documents to save time having to come to closing at their office.
#6: Property Manager / Field Manager
When buying rental properties you’ll want to have a hardworking and reliable property manager on your real estate investing team. A good property manager takes stress off of your plate by handling all tenant calls, repairs, bookkeeping, leasing vacant units for you, and overall improvement of your cash flow so you can pocket more money.
If you are in the business of flipping houses, a field manager will be a helpful member to your team as they can run around to different job sites to inspect work being done by contractors. Having someone help manage your flips can improve your overall team system and help you do more deals, making more money in excess of the cost of the field manager’s wages.
Having good sub-contractors can improve profit margins on your real estate investment deals. Finding good contractors takes time and you’ll likely cycle through several before finding the right team of contractors who perform quality work at a price that works for your profit goals in your flips and rental properties.
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#8: Insurance Agent
Property Insurance as well as business liability insurance are two things you will need as a real estate investor to protect your assets and all of the money you are investing into these real estate assets. In the case of disaster, such as a house burning down, having property insurance can prove to be valuable and well worth the annual premium.
Working with a good quality property inspector on your real estate investing team can save you money by helping you foresee problems and issues with a property before you buy it.
The inspector should do a thorough job analyzes a property to find all the issues and alert you of them so you can negotiate further with the seller or avoid buying a problem property all together.
A good real estate appraiser will come out to a property you are selling and accurately assess its value as well as give you helpful suggestions of what you can do to improve the properties value.
#11: Handy Man
One of the first members to add to your real estate investing success team is a handy man. Someone who is good at a variety of tasks and can get all kinds of random things done that your business needs to move forward and grow.
Having a handy man can save you money as they can stop over to a job site and fix issues before you need to call on a sub-contractor at a higher cost.
#12: Staging Crew
If you are selling higher end real estate, having a staging crew beautifully stage your homes can help you get higher price from buyers. Staging has been shown effective in helping sell real estate as home buyer’s can better visualize a space and helps justify the expensive price tag you may be putting on your newly renovated properties.
#13: Cleaning Crew
If you own rental properties, you can call on the cleaning crew during vacancies to get your rental unit ready for occupancy again. The cleaning crew will also be helpful in deep cleaning your fix and flips prior to listing them on the market for sale.
Having a mentor can save you lots of money, headaches, future problems, and most importantly can help you speed up your learning curve in running a successful real estate investing business.
Finding a mentor with successful experience investing in real estate themselves is important so you ensure you are learning from a qualified mentor who knows the ins and outs of real estate investing and you can trust their advice.
#15: Support System
Having a supportive family, and supportive friends can help push you to achieve your dreams of being successful in buying and selling investment real estate.
You will face many problems through your real estate investing journey. Finding support at home from friends / family will give you confidence and motivation to keep going and keep working towards your goals.
Overall, get started building a successful real estate investing team by including these 15 important members discussed in today’s guide. Going into real estate investing as a lone wolf will not lead to the best results. Build yourself a quality team of people who can assist you in achieving your dreams.
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