By
Dan McDermott
What
new year’s resolutions are you planning to tackle this year? While most people
may be thinking of joining a gym or better themselves you might be thinking
that this is the year that you finally make that real estate investment you
have always wanted. If you are thinking about purchasing an investment property
you may find yourself overwhelmed and asking the question “where do I start?”
I
would urge you to consider building a high-performance real estate investment
team as your first
step. You may be tempted to take the lone wolf approach and
start tackling the task on your own. However, most new investors will quickly
learn that real estate investing is a team sport. To be successful, a new investor will need to
build a team of experienced people that you can trust and rely on. Below is a
list of professionals that you will want to be on your team and what they can
offer:
Mentor
Any
successful real estate investor needs a good mentor or guide to help them
succeed. By closely training under the watchful eye of a more experienced investor,
we can only become more sophisticated and wiser. New investors can offer a lot
of value to experienced investors. Tasks
that might seem mundane or time consuming to a veteran can often be a valuable
learning experience that can provide a solid foundation for the new investor to
build their real estate career. So, go find a mentor now and establish a great
foundation for success!
Mortgage
broker or banker
A
mortgage broker can offer a variety of different financing products, but a
lender is the one who can make the loan decision. Both have their advantages
and a place on your team. What is most important is that they understand what
is important to your investment strategy (fast closings, lower interest rates,
or flexile terms). You will want a team member who has previous experience
working with other investors and wants to see you succeed. They need to be
creative and clever!
Accountant
You
will want to look for a CPA (Certified Public Accountant) or accounting firm
that is aware of the pros and cons of real estate. Preferably an accountant who
is an investor like you or at least has extensive experience in working with
investors. With recent tax law changes keeping accurate books and records for
investments will be extremely important. Additionally, when tax season comes around,
a seasoned accountant will be able to help you reduce your tax liability and
save you money.
Real
estate attorney
An
experienced real estate attorney is someone that will be familiar with the laws
of your investment area and that has extensive experience with the types of investment
assets you intend to pursue (If you are buying short term rentals, the attorney
should be familiar with short term rental contracts and zoning
requirements/code, for example). It is critically important to have someone on your
team who can review/prepare contracts, has knowledge about asset protection
strategies, understands your investment strategy and the laws and legalities of
all your actions.
Real
estate agent
A
broker or agent with experience in the areas you invest in and that has access
to off-market deals, the MLS (Multiple Listing Service) can be a great help. An
experienced real estate agent will be able to help you determine the market
value of an acquisition process and help you promptly sell your asset or 1031
exchange if that is more preferable.
Start
building your real estate investment team right away. While this is a list of
professionals you will want on your team, you may find that you need additional
support from property managers, appraisers, inspectors, and contractors. Investing in real estate can be a whole lot
less stressful and more profitable with the right team on your side. Assembling
the right team will not happen overnight, however once together, they will give
you the support and help you’ll need to make your real estate investing dreams a
reality. If you have any questions about real estate investing, please don’t
hesitate to contact me at 207-839-1981.
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