Important Team Members For Every Step Of Your Transaction
If the NBA finals taught us anything it is the importance of having a good team around you. Sure, Lebron James & Kyrie Irving were the stars but they could not do it alone. There were several players and coaches who did the little things to make them successful. These pieces to the puzzle often make all the difference in the real estate world. A good attorney or wholesale partner can help you find and close deals that you would not be able to otherwise. A good contractor can put the finishing touches on a rehab and your real estate agent can help get it sold quickly. The stronger your team is the better investor you will be.
Before you consider reaching out to prospective team members you need to take a minute and do some self-evaluation. As an investor you are the point guard or quarterback of your business. Your team will take their direction from you. If you don’t know which way you want your business or individual property to go either will they. You need to come up with a blueprint for what you want and how you plan on achieving it. The clearer your vision is the easier it will be to find people that share your vision. Where many investors run into trouble with their team is not knowing exactly what they want. Once you have this in place you can start seeking out members of your team. Here are the important team members you need for every step of the transaction.
- Financing. Everything on your deal starts with the financing. It will dictate how you buy, where you buy it and how much you are able to offer. It will determine the types of property you pursue and how quickly you can close. Your financing can be from a traditional local bank, mortgage broker, hard money or private money lender. The type of financing you have will impact everything else you do with the deal. You should have at least one of every option available at your disposal. You never know which option is best a particular deal.
- Real Estate Agent. Your real estate agent will carry out many important tasks for your business. In addition to helping find niche deals they will push deals towards closing and work to protect your interest at all times. They can help determine after repair value and supply comparable sales when needed. Once your rehab is completed they will work to get your property sold as quickly as possible for the highest amount. They hold a major role on both sides of the transaction. A good real estate agent over time can help keep your business moving forward.
- Wholesalers. Every real estate investor should have a handful of reliable wholesale partners. These are the people that find bargain deals and pass they off to end investors like yourself. You can meet these people at local networking meetings and investment clubs. You can also find them through your real estate agent, mortgage broker and real estate attorney. The more wholesale partners you have the easier it is to find new deals. As long as you hold up your end of the bargain the cycle should continue.
- Real Estate Attorney. Your real estate agent and attorney both carry similar functions. They are essential at the beginning and end of the process. They are the ones that will give your contract the final review before moving forward. If there are any snags as the deal progresses they will step in and try to resolve them. When the deal moves to closing they jump back in again and make sure all of the closing documents are accurate and what you expected. A good attorney will save many deals and allow you to focus on other areas of your business.
- Contractor. If your real estate focus is on rehabs a good contractor is essential. It is not enough to work with the first contractor that comes your way. You need to find a contractor that is on the same page as you regarding schedule and quality of work. They also need to understand the importance of staying on budget and knowing exactly what you want on every property. With the right contractor in place you don’t have to babysit everyone on the property all of the time.
- Inspector. It is important that you know exactly what you are buying. A reliable property inspector will help with this. Your inspector will take the time to quickly give you an idea of the condition of the property and any potential defects. They are often the last line of defense in making sure you get the deal you desire.
- Title Company. One of the hidden hurdles for many deals is the title. Things may look great on the surface but if there are defects or liens on the title everything can change. A reliable title company representative can cut the turnaround time on title searches by days. This alone can make all the difference in whether or not you move forward with a deal. A clean title can be a green light in moving forward but unexpected liens can bring the process to a screeching halt.
There are probably another half dozen team member in addition to the eight listed above. Instead of solely focusing on finding deals you should spend some time in building your team. A good team will not only lead to deals but help you get the most out of every deal you pursue.