Real estate investments are highly dependent on networking and making the right choices when it comes to choosing professionals. To enter real estate, you have to be in contact with the right people who have experience in their area of expertise. Their job is to help your investment grow and help you make the right decisions along the way. A real estate investment network is comprised of a group of professionals that an investor hires for entering, expanding or exiting the market.
Choosing the group of professionals that will be part of the real estate investment network requires a lot of research from the investor’s part, to ensure that the investment is in safe hands. A real estate market network can be your path to success, but having one element of that network that is not up to the task or neglecting your investment will lead to a different, ugly path.
The best approach for an investor to take before hiring professionals in real estate is to check their history. Try and ask other real estate owners in your area about a certain lawyer, broker or accountant that has experience in real estate. If that isn’t possible, then check on the internet for the best, even if it comes with a higher price it is worth it in the long-term.
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9 People you Need in Your Real Estate Network
Mortgage broker: Arguably the stepping-stone of your real estate investment network, a mortgage broker’s job is to identify the best loan option possible out there by setting the investor up with a bank/banker. A mortgage broker will know which banker will offer you the best mortgage rate for your selected property. Having a mortgage broker in your network is important for your initial investment and others you intend to make because they can save you loads of money on interest paid.
Real Estate Lawyer: Basically a real estate lawyer is experienced in the field of real estate regulations and laws. The tasks of a the lawyer consists of legally advising you on business related matter in terms of the law, establishing your company name with the authorities and drafting rental agreements to help protect the investor’s rights. For example, if you own property in a location that has some regulations about Airbnb rental properties then a lawyer will advise you on how to bypass them or to do it legally.
Real Estate Agent: Hiring a real estate agent will make things easier for an investor to find properties and negotiate deals with sellers or buyers. Their experience and access to Multiple Listing Services will give you a wider scope of the market and give a good evaluation of rental, selling and purchase prices.
Contractor: A contractor is responsible for all the material, equipment and labor force of a construction or renovation project. There should be a trustworthy relationship with the contractor, and if you are in the business of multiple houses, it is more than likely you’ll get a discount.
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Accountant or Bookkeeper: Finding an accountant with an experience in real estate bookkeeping is important. With all the tax-law changes that are happening, an accountant will find the best way to save the investor unnecessary spending expenses. An accountant also keeps track of your balances in terms of income, expenses and the net profit.
Appraiser: It is essential to have an appraiser in your real estate investment network. An appraiser’s job is to help you evaluate a property and to give you advice on how to raise the value of the property if it is possible. Basically, a good appraiser will help in determining if the property is profitable, or if your’e paying over the odds for a property.
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Inspector: To know the condition of the property, it is necessary to hire an inspector who has vast experience. A previous contractor turned inspector is a great option. They would be able to give feedback on the condition and the cost of repairs needed.
Insurance Agent: To insure your property from damages, hazards, thefts and tenant violations, it is advisable to get an insurance agent that will help get you the best insurance deals. Having one insurance agent will give you the chance to ask for discounts due to numerous services.
Title or Escrow Agent: The title agent’s main job is to find if there are any problems with the deed and titles of the investment property. For example, an investors could be considering a property which has thousands of dollars to be paid in tax liens, eek! An agent will be able to dig up this kind of information and advise accordingly.
The list of professionals above shows how important having a real estate investment network is for an investor, and how everyone helps an investors avoid losing money or time. People in these professions have done it all over and over again, which means they are able to provide the investor with a service that will protect their best interests. Not being able to afford all of them shouldn’t stand in your way to go out and hire the ones you feel are most important. That selection process should be based on seeking out professional advice in the areas you know the least about. From a multi-property owner’s experience on the other hand, having all of them is not just recommended but extremely necessary.