While it’s possible to invest in a few pieces of real estate without any help from others, it isn’t feasible to build a real estate empire without some willing and able partners by your side. The people you surround yourself with will have a huge impact on the results you experience.
Download Your FREE Tenant Screening Guide!
Hey there! Screening tenants can be a tricky business, and this critical step can be the difference between profits and disaster. To help you with your real estate investing journey, feel free to download BiggerPockets’ complimentary Tenant Screening Guide and get the information you need to find great tenants.
You Need These 5 People by Your Side
In the business world, division of labor is something that is commonly credited with increased efficiency and maximized resources. As TRACK, a leader in cloud-based sales and marketing, explains, specialization creates synergy and allows the organization to benefit from the idea that the sum of parts is greater than the whole.
When you look at specialization and division of labor in terms of real estate investing, you’ll experience best results when you have the following people by your side.
1. Local Real Estate Agent
A local real estate agent is a must, with the keyword being local. While a lot of investors prefer to use the same agent regardless of which city or neighborhood they invest in, it’s a smart idea to have a different agent with local expertise for each and every area. This will ensure your numbers are accurate and that you know everything about the properties you’re pouring money into.
It’s always a smart idea to add a CPA to your real estate team. Because of all of the complicated financial documents you have to sort through, their services are irreplaceable. “A professional accountant can help prepare your personal and business tax returns, and can offer you solid advice and tax recommendations,” investor Dave LaPlante explains. “Try to find an accountant who has worked with other real estate professionals or who is real estate savvy.”
3. Property Manager
The last thing a real estate investor wants to deal with is late-night plumbing emergencies or regular noise complaints. When you have multiple properties, you simply don’t have time to deal with little nuisances like these. That’s why you need a professional property manager on your real estate investment team. A property manager will handle all of the day-to-day operational tasks that come with your properties, which leaves you open to focus on big-picture responsibilities.
While it’s often assumed that lawyers exist to get people out of trouble, they can also prevent people from ever getting into trouble in the first place. As a real estate investor, you’ll be dealing with legally binding contracts. Having a trusted attorney on your team can ensure you get the most out of your properties and don’t end up in hot water over simple mistakes.
This may seem like a strange inclusion, but if you’re married, you absolutely need to include your spouse on your team. They don’t necessarily need to have an intensive role, but they need to be involved. You spend a lot of time with your investments, and a failure to include them will result in them feeling worthless and ostracized. And when they feel left out, you’ll know about it. This will only deteriorate your marriage and your business. Give them a role, or at least keep them abreast of what’s happening on a daily basis.
Teamwork is the Answer
It’s easy to get greedy when investing in real estate. Each new person that enters the equation takes a small sliver of the revenue pie. But the fact is that you can’t secure the pie without their help. You have to give some to get some, and aligning yourself with a team of qualified professionals to do the heavy lifting will allow you to scale your portfolio quicker than you ever imagined.
Any people you’d add to this list?
Leave your comments below!