As many of you probably know, the experience of investing in real estate is truly one of a kind. From single family residential, multi-family, all the way to commercial (and much more), there are numerous ways for a person to invest in this commodity that can yield a great return if treated with respect and caution.
If you’ve had a chance to speak with a seasoned investor, chances are you have heard numerous horror stories of things gone wrong when they first invested in real estate – whether they searched in the wrong area, bought a property with an endless list of repairs that ate up their profit, had to evict a tenant, didn’t have time to manage their properties, and much more. Point being, they jumped into the investing arena with both feet and sought to learn the basics and more by pulling up their sleeves and taking the next step.
While this can be a strategy that yields a great amount of personal experience and wisdom, I am becoming more and more convinced that having a team of top notch professionals by your side is extremely critical to ensure a more smooth and successful start to your real estate investment journey. Why not learn from those that have already been where you want to go? You can still get the coaching and “experience” that you wanted while being more cautious with the item that real estate starts and ends with: money.
Whether you are a new investor (or even an experienced investor), odds are that you could take very critical steps towards increasing your education, efficiency, and much more by evaluating your current real estate investor “Dream Team.” To help you get started, below is a list of team members that I would recommend you focus on adding first:
- Real estate agent: this is NOT your typical real estate agent that focuses on selling to owner occupants all of the time. You need to research and find an agent that specializes and is known for helping investors (important – this will not be easy). I like to call your agent your “boots on the ground” resource – they will be the ones vetting the property and giving you their professional opinion. Once you have a few options, call and ask them questions to explore their knowledge of real estate investing – ask them about the local market, what kind of cap rates they are seeing, if they can help facilitate a rehab, how they calculate their comp reports, do they provide an investor analysis, etc. You should be able to get a good feel for their knowledge based on how they answer these questions.
- Property management company: for those of you that have had experience with property management companies, you know that this part of the equation can make or break the whole investment experience (especially if you are investing in an area outside of your personal region). Since your tenants are the ones that ultimately make your investment worth your time, it is imperative that you hire a property management that is not only good at what they do, but that has the background and history to prove it.
- Mentor: if possible, it is always great to have a mentor to help steer you throughout your investment journey. While you will not be protected from every speed bump and road-block that comes your way, it is good to have someone that has been in your shoes to help guide and direct you (and possibly save you hundreds, if not thousands, of dollars).
While this is only a short list of members that can be on your real estate team, the key point to remember is that you must surround yourself with people you can trust. It is also extremely important for them to be knowledgeable and experienced in the real estate investment field.
Interview them, meet with them, and ask them questions – trust me, you won’t regret it.
Disclaimer: Jason Reynolds does not provide legal, tax, or investment advice. All information herein is general in nature and should not be considered legal, tax, or investment advice. Consult an attorney or tax professional regarding your specific situation. Nothing contained herein should be relied upon as a promise or representation as to the future. Recipients should conduct their own investigations and analysis of any real estate transaction that they are involved in. No warranty is given concerning the suitability of this information for any application.