Who You Need In Your Corner: Building Your Real Estate Investing Team
As a real estate investor with a history of deals under my belt, I can't overstate how important it is to build a good team to help you close deals and scale your business. Investing in real estate is a tough and complicated job that requires the skills of many different professionals. No one person can do it all alone, and if you try, you’ll find that you are spreading yourself too thin, which will lead to mistakes and missed chances.
Believe me - I’ve seen the investors that think they can do it all. And every single time, they burn out, lose potential income and regret not building a team. Whenever I teach young investors how to start investing in real estate, I tell them to build their team early and build it right the first time.
So - here are the 6 team members you need to add to your investing team to make the dream team a reality.
- Real estate attorney
- Real estate accountant
- Contractor
- Property manager
- Mortgage broker
- Insurance agent
1. Real Estate Attorney
You need a real estate lawyer on your team. They'll help you figure out how the law applies to your particular real estate deal (every deal is different), write and review contracts, and most importantly - they'll make sure you're protected from any legal problems that might come up.
A lawyer is the #1 team member that will also make sure that the transaction goes smoothly and that all the paperwork is in order. Because dealing with a structural issue? A nightmare. But that's all in your control.
Dealing with the red tape and overloaded court system? Nightmare doesn't quite do that feeling justice...
2. Real Estate Accountant
An accountant will help you keep a hand on the pulse your finances and ensure you're taking advantage of all the tax benefits you should be getting. A real estate accountant is going to help you develop a financial strategy that's going to maximize your profits while minimizing your risk.
Basically, if your cash flow starts to dwindle, your accountant will be able to sound the alarm. A qualified accountant will help you spot the issue early so you can deal with it.
3. Contractor
An honest contractor who knows how to accurately estimate repairs is worth their weight in gold. They'll keep an eye on the building process, make sure the work is done well, and keep the project on track and on budget. They will also help you figure out how much repairs and renovations will cost, so you can make smart decisions about your investments.
4. Property Manager
If part of your plan to invest is to rent out properties, you need a property manager on your team. They'll take care of everything about the property, like finding tenants, collecting rent, making repairs, and keeping it in good shape.
Protip: try to find a property manager that has experience in your property’s location, as they’re also responsible for making sure that the property follows all laws and rules in the area. Plus, they know the local hardware stores that have what they need, and they've probably got connections that will make the whole process go smoother.
5. Mortgage Broker
For an investing business to grow, it needs to make more deals. And you can't do more deals without more capital. A mortgage broker can help you find the best ways to finance your rental properties while minimizing your interest payments - which is the bedrock for any successful investing venture.
A good mortgage broker can get loans from multiple lenders and can help so you get the absolute best rates and terms. They'll also explain the different kinds of mortgages and help you figure out which one is best for your overall investment plan.
6. Insurance Agent
An insurance agent is an often overlooked, but crucially important part of the real estate investing team. Why? They help you cover the risks that come with owning properties.
They help investors identify and evaluate possible risks, like natural disasters or lawsuits, and give them insurance policies to help them deal with those risks.
Insurance agents also make sure that investors follow state and local insurance laws and can help them through the claims process if they need to. Which, if you've ever been through this process, can be a massive drain on financial (and mental sanity) resources.
A good insurance agent helps real estate investors protect their assets and investment portfolios, and rest a little easier at night.
Building your investment team takes time and work, and there’s one centerpiece that makes the whole process move forward; lead gen software. Without leads, there are no deals, and without deals, you have no need for a team! So grab your 7-day free trial of Leadflow’s next-gen, all-in-one investing software and see what it can do for you!
