Investing in real estate can be a fun and lucrative way to make a living or supplement your income for retirement. However, to be effective and maximize your efforts, you are going to need help from many different people. Most people in this industry do not have the time or expertise to be able to handle all aspects of the business. Therefore, building the right team is one of the most important things you can do as an investor.
While this is in no way a complete list, the basic building blocks of your team should include: contractors, an attorney, a CPA, an insurance company and a hard money lender. If building a rental portfolio is part of your plan, you need to line up a permanent financing partner and probably a property management company as well.
Selecting the Best Team Members
Selecting which companies to use for each of your partners can be a time-consuming task, but it is vital to your success. When selecting a business partner it is always important to check references. You should always ask for two business references, take the time to speak with them and ask specific questions about their reliability, honesty, work ethic, ability to stay within budget and respect for deadlines.
Also, check any online feedback you can find, including customer service reviews, testimonials, etc. You need to feel comfortable with your potential partner (as well as their effectiveness) before selecting who you will work with. There are too many options out there to just “settle.” Lastly, make sure you clarify performance expectations--in writing--for pricing and turn time.
Once you have your team in place and you’re ready to go, it’s easier to focus your efforts on the engine of this business, including marketing your company and buying more houses. Good luck!