When considering investing in real estate, you should first review whether you have the right team of professionals available to advise you along the way. You may already have some of them working with you, or you may need to consider others that have more experience related to investing in real estate.
Your team will typically consist of:
accountant / tax specialist
experienced real estate agent
Financial Planner – Financial planners guide you in making your money grow. They will advise you about where to allocate your money (variety of sectors, including real estate, stocks and bonds, and commodities). It’s hard to find one person with all these skills and the licenses to trade in each area, so most investors opt for a company that can handle all the work.
Business Lawyer – You’ll want a lawyer or firm with a solid practice covering the areas of real estate, estate planning and taxes. While lawyers won’t make you money per se, their job may be the most important of all. Why? They can keep you from losing all your money due to bad deals and dishonest team players.
Accountant/Tax Specialist – Accountants handle your day-to-day financial matters. They will help shape your financial affairs with an eye toward saving you money come tax season. Your accountant is the team player you’ll probably talk to the most.
Insurance Specialist – If you have a lot of investments and assets, insurance isn’t something best bought through your average broker. You need someone who knows your family, your business and your needs.
Experienced Real Estate Agent – A real estate agent is the team member that will help you find the best investment property meeting your criteria. They will know the market, know your options for ‘best use’ of the property, and what your future opportunities are for an exit strategy.
Some people and companies can handle several of these positions, but no one person can handle them all, and do the job that you require.
Updating the Team – First, always double-check your team’s work to make sure they’re honest. Trust is great, but when it’s your money, the only person you should trust is you. Second, be on the lookout for ways to enhance your team. It’s nice to work with the same people on a regular basis, but if you can make more or be more efficient with someone else, do it. It’s not personal, it’s business.
If you’re an investor looking for property management services, visit our property management partner, Boston Property Care, to learn more.
Contact us for more information about assembling your team.