Real Estate Investing Team

The Right Team Makes The Difference

Running and managing rental property can be a daunting undertaking unless you have the right real estate investing team in place to swing into action as soon as a problem arises.  All of the following people may not be needed initially while you are getting your feet wet, however, as you acquire more and more real estate you may shift your focus from one aspect of the real estate business to another that may require a different team.  For example, if you begin purchasing single family units in absolutely pristine condition without any work then simply rent it out, you probably will not need an architect, management company or handyman.  If you later begin to deal in foreclosures and properties that require some rehab, you will need carpenters, electricians, plumbers, etc.  This page simply lists some of the people will find helpful to have on your team.

Lawyer

A lawyer can perform the most basic of legal tasks or the most complicated.  Seek a competent lawyer who specializes in real estate matters.  If you seriously intend to make a go of real estate investing, you will do well to have someone on your team that you have ready access to.  In our litigious society it is a must for everyone to have access to legal representation.  In dealing daily with the residents in your properties or contractors or other situations which may arise, subscribing to a monthly legal service plan like Pre-Paid Legal Services has proven to be a source of "peace of mind".  For example: Would you know what to do if a contractor put a lien on one of your properties?  What would you do if a trespasser is injured on your property?  What should you do if your property is about to be seized because your tenants have been dealing drugs? For a small monthly membership fee you can have access to the following benefits through a provider law firm:

1. Phone consultations on any matter
   
2. Phone calls and letters written on your behalf
   
3. Unlimited contract and document review
   
4. Wills for you and your family
   
5. 25% reduction in fees for other real estate matters

This service will be an invaluable tool that is like having a lawyer on retainer.

Real Estate Agent

Agents are one of the best and overlooked sources for real estate investors to locate properties. Simply developing a relationship and following through on a number of purchases demonstrates your sincerity in doing this as a business.  Agents have access to the Multiple Listing Service (mls) and in many cases may be the representative for a number of banks who have properties that they need to liquidate. Realtor.com is a great online resource to find realtors in your area.

Banker

Before going to other sources for financing, check with your local bank where you have an account to see if you can obtain funding at that institution.  If not, a mortgage lender network can help you locate several sources all in one place.

Loan Broker

Buyer Beware!  While loan brokers can be an invaluable resource for obtaining financing, much care must be taken when dealing with these businesses.  The best advice is to ask questions, ask questions, ask questions.  Ask about rates, how certain loans will work, ALL of the fees involved and always and I repeat always ask to see the closing statement as far in advance of the closing as possible.  There is nothing more frustrating than arriving at a closing only to find out that there are numerous mistakes on the closing settlement papers and that the closing may be delayed or that money you may have been due is substantially less than expected because it's been "eaten up" by added fees.  Try to pay as little up front as possible.  Trust your instincts.  If something doesn't sound right, move on to another broker.

Accountant/CPA