As an investor, you need to be prepared when opportunities present themselves. Instead of reacting when you get a new lead, you should have one foot on the ground and ready to take off. However, most new investors wait for the deal first and have no idea what to do once they get it. They end up spending a day or two researching the property. By the time they make an offer, the property is already gone. While you are waiting for that first deal, you should spend the time and get your real estate team in place.
There are a handful of people that can constitute an investing team. You may think that your realtor and attorney are the only people you need to have a relationship with, but there are many others that have an impact. Even if you don’t have a current deal going on, you should introduce yourself and have a vision for your business in place that you can share with others. By reaching out and getting the formalities out of the way, you can contact them as soon as you need to. There are many people that make up your investing team:
It is important to note that not all attorneys are qualified to handle real estate. This is the very first question you should ask. If they have experience closing deals, particularly investment deals, they will make your transition a smooth one. If they do not have a staff you can reach out to or you can’t get in touch with them, they are probably not the best attorney for your business. Don’t get caught up with fees and costs. Money is always important, but for a few extra hundred dollars it pays to use the attorney that you feel the most comfortable with.
Before you contact a realtor, you should have an idea as to what you are approved for. There have been many changes to the lending profession, and some new loan programs are scheduled for this year. By working with someone that has access to lending programs and knows what you want to do, you can close more deals over the course of the year.
Many investors think that their realtor can just magically find properties. While they certainly have access, you need to do your part. This means knowing what you are approved for and having an idea on the location, price range and condition you desire. The more detailed you are with what you want, the more accurately they can help find what you are looking for. If you waste their time with properties you neither have the means nor desire to buy, they will lose motivation in working with you. A realtor can be one of your greatest assets, but you need to hold up your end of the bargain.
A good contractor will be able to give you estimates and know where you can save on the budget. Much like your realtor and attorney, you should have some idea of what you want out of each property before you get started. You don’t need to be an expert, but if you leave everything in your contractors hands you can’t complain when things don’t go the way you want. Reach out to contractors you meet at local networking meetings and ask to sit down to discuss how you can work together. Many contractors will welcome the new business and will be more than willing to have a cup of coffee with you. Instead of waiting until you take ownership, you should have a contractor on board when you first look at any new property.
A good insurance agent is one of the hidden ways you can save money as an investor. Premiums on investment properties have steadily gone up over the years, but a good agent may be able to give you advice on how to reduce this amount. Additionally, they can give you the proper coverage you need to offer you the best protection in the event of an emergency.
Even if you have capital of your own, you never know when you will need to make a cash offer. The more options you have, the better investor you will be. You may not think you will ever use private money, but there are some deals where it can be a perfect fit. At worst, you take a meeting and understand a little more of how they work. If you can use private money for just one deal a year, it is worth it
There will be some down time before you buy. Take advantage of that time and get your team in place before you make any offers. Not only will you be much more efficient, but it will help you know what a good deal looks like. The more good people that you surround yourself with, the better investor you will be. Opportunity comes to those that are most prepared. Have your team in place the next time a deal comes your way.