Property investment can be quite overwhelming, especially for a first-timer. Like any venture, you need to put in work to reap any rewards. However, you do not have to go at it alone. The first step in building a prosperous property portfolio is building your team of experts whom you can work with. You could create a team and like with every team assign different roles to different experts in a collaborative effort to achieve the same goal.
As a team leader, there are things to consider before choosing those experts. To be a more resourceful team, the experts, despite different backgrounds, should have some experience in real estate or property investment. The professionals on your team could include:
Accountant and/or Financial Advisor
Like with most investments, financial reward is the goal in property investment. Therefore, it is essential to have a good financial advisor who can help you to develop a sound financial strategy to achieve your business goals. An accountant, on the other hand, will help with managing your money. This is imperative. Having someone with the proper background to give you updates on tax changes you should be aware of and make claims will take you a long way.
Real Estate Agent or Buyer’s Agent
An experienced real estate agent is another expert you shouldn’t miss in your team. Finding one you can trust is a right step in reducing your workload. They should have in-depth knowledge of the local market and be very proactive to anticipate your requirements for a good investment deal. The commission agreed upon should be transparent so that their incentive is clear as well.
You might be one of the investors who choose to self-manage their own property. This is not always advisable for two main reasons. The first being that you may have little or no knowledge in property management. The second being you might not have the time. A good property manager relieves you from the tedious duty that comes with property ownership. They mainly look after the tenancy of your properties and everything that goes with it: rent, accounts, leases, inspections, disputes, issues, and paperwork.
Property Management gets complex. You want someone on top of their game; familiar with both current local and federal laws. They should have broad experience with your particular type of investment too.
As a first, know their area of expertise; Do they work with commercial properties or residential properties? How long have they managed homes, or how many homes do they currently manage? References are a helpful way to assess what kind of a relationship you’re going to have with your property manager.
A Good Lawyer
The team will also need a good lawyer in its corner, preferably someone with experience in property investment. They would help you understand and navigate the critical elements in your contract and the fine print that comes with all the paperwork. They’ll help decipher any complicated terms and conditions, and translate the legal jargon.
It’s essential that you get a building and pest inspection carried out before you buy a property. The last thing you want is to buy a property only to find out it’s riddled with termites or structurally unsound. A trusty Building Inspector will help you determine if you have a quality property on your hands. They can save you from forking out thousands on surprise repairs and maintenance after the time of purchase.
A Quantity Surveyor specializes in property depreciation to prepare your tax depreciation schedule. A specialist Quantity Surveyor is worth having on your team as they will ensure you’re claiming everything you are legally entitled to.
If you’re looking to purchase a new investment property, it may be worth speaking with a lending specialist. He/she helps you find the best product to suit your situation and your finances. An Investment Property Lending Specialist can meet you at work, at home, at a cafe, or even in the middle of an empty section. They’ll meet you at a time that works best for you and are available seven days a week. In some cases, they can even approve your loan for you on the spot.
Your strategist walks with you from the early stages of investment to diversifying your portfolio. Right from choosing a location, analyzing the market, negotiating leases to financial analysis of new investments, and assisting with the sale of assets.
This is perhaps the most essential member of your team. They will guide you through every stage of your portfolio’s growth and will have a vested interest to see your investments thrive.
An exemplary strategist helps you;
- reduce possible risks with your investment,
- save money, and
- avoid mistakes in the long run.
A broker with a broad knowledge of lenders and loans that can be availed to you can also make your team. Their work is to provide you with options more suited to your needs and make the loan application process run as smoothly as possible.
They’ll give you advice on how to structure your loans to help you leverage into multiple properties. This is quite helpful in diversifying your portfolio.
In many ways, the work of a sourcing agent is to ease your life as far as sourcing and sales are concerned. Working with this professional saves you countless hours that you would otherwise spend trawling through property agency listings and going out for viewings. In addition, a sourcing agent looks for potential opportunities in your preferred location of the business.
Having someone who has had hands-on experience in the industry whom you can turn to for advice is necessary. He/she could be a fellow investor with whom you can share ideas and challenges of the property business. Behind every great achiever lies a great mentor.
Finally, it is important to remember that you are also a member of this team and that your contribution is as valuable as everyone else’s. Some basic knowledge of the market enables you to keep track of the performance of the investment. As a property owner, you should develop a set of skills to help you differentiate between professionals who are loyal and those that are out to take advantage of your ignorance.
When all’s said and done, “ideas grow better when transplanted into another mind than the one where they sprang up.”