Teamwork makes the dream work! Any real estate investor that has overcome challenges to fulfill their dreams, especially those that have endured the trial and tribulations of the school of hard knocks, will tell you that surrounding yourself with an effective team is essential to building and sustaining profits in real estate investing.
New investors, on the other hand, often choose to venture alone when first entering the real estate investment business. They feel that if they isolate themselves, they can make mistakes and learn – on their own and within their own silos. Some real estate investors also begin as accidental landlords and do not even consider the idea of building a support team.
Experienced investors can attest that there are many drawbacks of being a solo real estate entrepreneur and that it is important to have an effective support team in place from the very beginning. Why is this? Why is it important to build an effective team from the onset? Whether your strategy is to wholesale, fix and flip, or buy and hold, see why leveraging an effective team is essential to your success.
Why it’s important to build a real estate investing team
An effective team is the backbone support needed to help real estate investors maximize their return on investment (ROI). These team members are key to ensuring that you find the best deals, have the money necessary to acquire properties, and manage your rental portfolio.
Your focus should be beyond just building a team, but to ensure that sure you find motivated, knowledgeable and experienced team members.
The following four professional categories will assist you in building your dream team:
Seekers – Realtors and Property Scouts
A Realtor is someone knowledgeable about the local market and connected to the pulse of the community. Realtors can be an integral part of your team. Realtors often have the tools and access to view potential real estate investment opportunities before they hit the market. They often also have access to buyers looking for homes in the market. This can shorten the turnaround time for selling your fix and flip properties. Similarly, a property scout can be anyone that is willing to keep an “eye-out” for possible real estate investment opportunities and buyers. It can be the mailman, advising you about homes that appear neglected or abandoned. They can also be a new investor to the business that is not quite ready to complete their own deals and are happy to provide you with information, for a small finder’s fee.
Financing your real estate investment using other people’s money, can increase your return on investment. It’s true that “Cash is King”, but when cash is leveraged with additional financing, it can open up more opportunities and flexibility for your business. An experienced and reputable rental property lender will provide access to financing facilities created specifically for real estate investors, such as 5-year or 10-year fixed portfolio term loans, 30-year fixed single asset term loans, or acquisition / bridge lines of credit for fix and flips. These financing options will provide you with the increased power to acquire or the ability to refinance existing properties and tap into your available equity.
Tax Professionals – CPA and Tax Attorneys
Many investors overlook the importance and benefits of working with a Certified Public Accountant (CPA). A CPA will assist in building the financial structure of your real estate investments and implement tax efficient strategies to maximize the return on your investment portfolio and reduce tax liabilities. Hiring a CPA is important to manage your financial records and provide advice on important tax decisions. This is smart real estate investing. An experience Tax attorney can also help you navigate the maze that is the US Tax Code. A tax attorney can assist with legal structures for your investments, establishing Trusts and estate planning.
Last but not least, a fantastic real estate investment team has an equally fantastic property manager or management company. If you like or can handle the 2am calls from tenants about the toilet that will not stop running, by all means self-manage. If you are like me, take a pass and leave it to the professionals. Your Property Manager will handle all aspects of your property management from tenant screening, marketing to rent collection. Focus your efforts on simply managing your property manager and finding more deals to add to your rental portfolio.
Continue to build your dream team
These are just a few of the professionals that can make investing in real estate a lot more profitable and a lot less stressful. As your business grows, so will your need for experienced professionals. Continue to build and evolve your DREAM TEAM and you will pave the road to long-term success in real estate investing.
Looking to add an experienced real estate investment focused lender to your team? Corevest is here to help. We are an asset-based, nationwide specialty lender, that provides financing exclusively to residential real estate investors. We understand the needs of residential investors and provide financing based on the cash flow of real estate investment properties.
You will not be limited by Fannie and Freddie guidelines which focus heavily on personal credit, income and limits the number of investment properties you can own. Instead, we focus on you, your experience and the cash flow of the asset.
CoreVest is a leading provider of financing solutions to residential real estate investors. We provide attractive long-term debt products for stabilized rental portfolios as well as credit lines for new acquisitions. For more information about how CoreVest can help grow your rental and rehab business, please call 844.223.2231 or submit our contact form.