If you have the right team in your corner, your real estate investment business should run like a well-oiled machine. A great real estate investment team includes professionals that are experts in their selected fields. Some of these fields include real estate sales, property management, construction, and finance.
Real Estate Agent
A real estate agent with experience in your market can help you decide how much to offer for a property and estimate how much rent you should charge. They also have access to information that is sometimes not included on a public real estate listing. In addition, your real estate agent can bring you off-market deals and can save you time in the negotiating and purchasing process.
Property Manager/Field Manager
When purchasing multiple rental properties, you’ll want to have a reliable property manager on your team. A property manager takes some of the stress that comes with being a landlord off your plate by handling all tenant calls, repairs, bookkeeping, leasing vacant units, and improving overall cash flow.
If you are in the business of flipping houses, a field manager will be a helpful member of your team. A field manager visits your job sites and inspects work being done by contractors. Having someone help manage your flips can improve your overall process and help you complete more deals.
Even if you buy your investment properties in rent-ready condition, at some point you’ll need to fix something. A water heater will burst, the roof will spring a leak, or your heater will stop pumping out hot air. In situations like these, you need a general contractor or handyman that not only does quality work, but also shows up quickly and charges reasonable rates.
If you plan on financing your fix and flip and rental properties, you will need a lender. A good real estate investment lender is knowledgeable and can educate you on the different financing options for real estate investors.
If possible, look for lenders who strictly work with real estate investors. These lenders are able to give valuable advice to their borrowers and analyze deals for potential profitability.
While real estate is a tax-advantaged investment, investment property taxes can be complicated, especially if you own several properties.
For example, do you know how to accurately calculate depreciation or how to report it to the IRS? A Certified Public Accountant, or CPA, can help keep your income and expenses in order and calculate your deductions.
Working with an experienced property inspector can save you money by identifying issues with a property before you buy it. A property inspector does a thorough analysis of a property to find all the problems and alert you of them so you can negotiate further or avoid buying a problemed property altogether.
Going into real estate investing as a lone wolf is always the best course of action. Research and build a quality team of professionals who can assist you in achieving your investment goals. At First Equity Funding, we focus solely on asset-based lending to real estate investors looking to buy or fix up residential properties in over 40 states throughout the US. Contact us today!