Many real estate investors get into the business because they dream of accumulating wealth, retiring early, and achieving financial freedom. While it certainly is possible to make all that happen, it’s not something you can — or should — do alone. Truthfully, to be successful in real estate investing, you need a team of experts by your side.
There are certain people essential to any real estate investing team. Read on below to learn more about the role each team member plays in your investment strategy and how you can start putting together a team that works for you.
Partner or spouse
Although you and your spouse do not necessarily have to tackle renovating your investment properties together like those couples on HGTV, you will probably at least need their support. At the end of the day, investing in real estate is not an easy job, whether you’re treating it as a full-blown business or a side-hustle. At its core, it requires a lot of capital, time, energy and sweat equity.
Even if your spouse does not want to get involved in the practical aspects of real estate investing, you’re still going to need them to be kind and to offer words of encouragement. Otherwise, it’s going to be very tough to succeed. Make sure your partner is invested in your success before you start on this journey.
Real estate agent
Once your spouse is on board with the idea of investing, the next step is to find a qualified real estate agent. Above all, an agent will be there to help you search for and find available real estate deals that match your criteria. They will also help you take the temperature of your local real estate market to give you the best chance of submitting an offer that meets your bottom line and piques the seller’s interest.
Odds are, if you are a regular client, your agent will be more likely to agree to lower their commission below the standard 3% rate. After all, if you give them regular business, it will save them the effort they’d make and the price they’d pay to find a new client.
That said, it’s important to note that you could also get your own real estate license. If you did, you could do these tasks on your own, and you would also be able to save on commission fees.
Unless you’re planning on buying all of your properties with cash, it’s important to make sure you have a lender on your side who is well-versed in investing.
Unfortunately, the lending standards for investors are often stricter than they are for buyers who are purchasing their primary residence. With that in mind, you want to have someone in your corner who can make sure you end up with the financing option that makes the most sense for you and your investments.
Next, if you’re following a fix-and-flip investment strategy, you’re definitely going to need a reputable contractor. Not only will your contractor be the one to take the lead on managing any renovations you plan to make, but they can also provide you with work estimates before you purchase the homes in order to ensure that each property is well within your budget.
Still, even if you’re following a buy-and-hold strategy, it can be a good idea to have a general contractor on your call list. In this case, you never know when one of your properties is going to need emergency maintenance. Having someone who you can call to take care of it will save you plenty of time and a lot of headaches.
Real estate attorney
An airtight lease is necessary for those who are planning on following a buy-and-hold strategy. A qualified real estate attorney can help you draw leases to use with your tenants. Additionally, if any issues arise with your tenants in the future, the attorney can provide you with professional advice on how to proceed.
Regardless of what type of investment strategy you’re following, though, it can be helpful to have a real estate attorney on your team. Unfortunately, you never know when you might be involved in litigation or need some legal advice.
An experienced property manager is another good team addition for those who are following a buy-and-hold strategy. Your property manager can handle the day-to-day aspects of managing the properties and their tenants, which is especially helpful if you own multiple properties. They can take care of everything, from showing the properties to signing leases to handling tenant disputes.
Many landlords will insist they can do the work of a property manager themselves. If you don’t want to be the one answering calls about a clogged toilet or broken air conditioner in the middle of the night, however, hiring a property manager could be a good investment.
Finally, it’s important to hire an accountant who can do your bookkeeping. Real estate investment taxes can get complicated, so having someone there to keep track of your income and expenses can make doing your taxes all that much easier. As an added bonus, when you have a professional do your taxes for you, there’s less liability if you were to get audited.
Beyond taxes, there’s plenty of things an experienced accountant can do for you that will make them worth their fee. For example, if you have anyone on payroll, they can take care of the ongoing tasks needed to ensure your employees get paid.
The bottom line
Building a portfolio of real estate investments can be a great way to increase your net worth. It’s important to realize, though, that investing in real estate doesn’t happen in a vacuum. Rather than trying to do it all on your own, you’re better off gathering a team of real estate professionals around you.
You can be a successful real estate investor on your own, but it’s a whole lot easier with a team.
Justin Malonson is the Founder of LyfeLoop a 16+ year tech innovator, investigative media researcher and host of the Freedom Not Control Podcast live on Voice America. Justin is a highly sought-after tech entrepreneur, industry speaker and winner of the coveted Business Achievement Awards “Top Digital Marketer” award. With 16+ years of demanding experience, Justin has worked with over 3,000 businesses including amazing clients such as Blue Cross Blue Shield Association, Sotheby’s International Realty, Duke University, White House Black Market,Tiffin Motorhomes, Bass Pro Shops and Beazer Homes USA.