Assemble Your Real Estate Investment Team
In sports, the way a team works together to achieve a common goal can mean the difference between success and failure. Much has been made, and rightfully so, about team chemistry in professional sports and your investment goals can benefit from the same solid teamwork. As you delve deeper into real estate investment, the people you work with will go a long way toward increasing your profitability.
There are some key people that you will involve in every real estate investment situation and there are some that will see only situational work. Trying to do too much yourself is a terrific way to burn out on real estate investing altogether, so keep that in mind when you decide on just how much work to divvy up. These are some key members that you might consider for addition to an investment team.
Real Estate Agent/Real Estate Attorney
Many real estate investors will rely on a real estate agent to help them hunt down potential listings for investment work. An even better way to use a real estate agent is to draw on their experience with a particular area to get information about the financial situation of the area, which directly impacts the future profitability of your investment.
Along those lines, if you are unfamiliar with a particular area, it can sometimes make sense to include a real estate attorney in the proceedings to advise you about any laws or regulations specific to the area that might affect your investment strategy. These two team members offer expertise where you may lack it, especially if you are a brand-new investor.
Getting a good idea of the true value of a property, no matter what sales price is attached, will put you quickly on the way toward determining how viable an investment may be. Relying on an appraiser will give you the ability to not only determine the value of a home but get ideas on what can be improved to quickly add value. Having an appraiser on your side can help you pinpoint those types of parts of a home, putting on you the road to understanding just how much you can raise the value of your investment quickly after purchase.
Similarly, an inspector, especially one that is extremely experienced, can not only tell you what needs to be repaired in a home but also estimate how much those repairs will cost to give you a better picture of what you’ll have to spend to get an investment property up to the level it needs to be at. Both an appraiser and inspector can do all of this work before ever making an offer and that will tell you clearly what needs to be done and what dollars are involved when evaluating a piece of real estate.
Cleaning Assistance/Property Management
Oftentimes, the value will be added to a property after a simple run-through by a cleaning agency. Cleaning up prominent areas like the front yard and bathroom will instantly add value to a property and a good, efficient cleaning company can help you turn around your investment quickly. Giving that responsibility to someone else will cost money, but it will also take the stress out of the situation as well.
Along those same lines for reducing stress, a property management company could be a good team member to add to reduce your involvement in the day-to-day operations of a property. Most of those types of companies will handle the entire process of renting a property and arranging for payment, freeing you up for other investment opportunities. In the great scheme of reducing stress through adding team members, a rental management company can be one of the best ways to do so.