Past Tense

I didn’t understand the concept of a real estate team at first, so I had a difficult time with real estate investment at times. I tended to be a “lone wolf,” trying to do too much of the work myself. I have since learned that in real estate, you need a team of people you can trust and rely on daily. Here are some possible team members, and what they need to bring to the table to be on your team.

1. A mortgage broker or banker. A broker can offer many options, but a banker can make the loan decision. They each have their advantages, and you could use both on your team. In either case it’s important they understand what your goals are (fast closings, lower interest, corporate loans?)

2. An accountant or bookkeeper. To keep proper books for real estate investment, it is getting more complicated with all the tax-law changes. Find someone that understands the law, and understands what you want.

3. A real estate attorney. Find someone familiar with the laws and legal customs of your area, and that has experience with the type of deals that you do. (If you are buying rentals, he should be familiar with doing evictions, for example.)

A competent real estate agent. An agent with experience in the area you invest in and access to the MLS (Multiple Listing Service), can be of great help. If he is a seller’s agent, she can still ethically bring the best deals to you once she knows you’re a serious investor.

5. An appraiser. An experienced appraiser can give you an accurate valuation of a property, but they can also suggest ways in which you can most efficiently raise the value of a property. Find someone that will talk to you about these issues at hand.

6. An inspector. Some states make it easy to become an inspector with little or no experience. You may want to find one that is or used to be a contractor, so he can find the problems AND give you some idea of the cost of repairs needed. He can also give you tips on how to avoid such repairs in the future.

7. An insurance agent. Experienced ones will understand what you want, and find ways to save you money on your premium. Insure all of your properties with one agent, and you’re likely to have discounts available, as well as personalized service.

8. An escrow officer. They’ll probably be with a closing company. Find someone that’s efficient, and can explain things clearly to both sides at closing. If he is confused by a slightly creative contract, he should educate easily or be replaced by someone more familiar with different types of contracts.

9. A cleaning crew or person. When you have a trusted person or crew ready, it means a fast turn-around when you buy a rental or rehab projects that needs some cleanup.

10. Rental property manager. Be certain that the company you hire has experience, is responsive, and will have time when you call. Good property managers can tell you what you should get for rent in a given area BEFORE you buy that property.

Start building that team. Investing in real estate is a whole lot less stressful and more profitable with a good real estate team at your side. Good luck!