Getting Started in Real Estate Investing

Investors need to realize that, as they embark on their real estate investing venture, although they’ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.

No one would successfully be able to start a new job without the proper training, and only a fool would be able to turn a solid profit on the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. Investors need a plan if they’re going to succeed, and they’re also going to need some help.

Investing as a collaborative effort

It’s possible to know a great deal about real estate and be particularly savvy, but there are some things that need to be left to the professionals. While the Internet can be a tremendous source of information and help with research, it just will not tell anyone what is really going on with a house. It’s important to actually get out there and see the property.

An online home appraisal will not detail the quality of the house and the condition that its features are in. Internet reports will not indicate if there are new carpets or no carpets, or what sort of fixtures are in the bathroom, or what sort of kitchen and what sort of appliances there are. In order to do this, investors need to get out there - and often times, call in the pros for another opinion.

Throughout the investing process - and not just the first one, but with each and every property purchased, professionals are needed to aid investors:

An attorney. A lawyer will help an investor wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.

Title or escrow company. The best ones to go with are the ones that work mostly with investors; they’ll speak the same language.

An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.

A CPA. Since investing should be treated as a business, an accountant is needed to help with finances and profits. The theme here is to find one that understands real estate and investors.

A mortgage broker. Again, it’s good to stick to one that understands investors and has experience with investors.

A contractor and a plumber. If the investment property is a fixer-upper, a contractor will need to come in to determine if any structural or cosmetic repairs are needed. A plumber should also be referenced as they will determine the conditions of the pipes, (if there are any leaks or major problems). Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. Investors should keep a fair distance from houses with structural issues as these tend to kill the profit.

Just as lawyers specialize in an area, so should the pros that work with investors. This helps to keep everyone on the same page - and operating in harmony.

Getting Started in Real Estate Investing

Investors need to realize that, as they embark on their real estate investing venture, although they’ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.

No one would successfully be able to start a new job without the proper training, and only a fool would be able to turn a solid profit on the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. Investors need a plan if they’re going to succeed, and they’re also going to need some help.

Investing as a collaborative effort

It’s possible to know a great deal about real estate and be particularly savvy, but there are some things that need to be left to the professionals. While the Internet can be a tremendous source of information and help with research, it just will not tell anyone what is really going on with a house. It’s important to actually get out there and see the property.

An online home appraisal will not detail the quality of the house and the condition that its features are in. Internet reports will not indicate if there are new carpets or no carpets, or what sort of fixtures are in the bathroom, or what sort of kitchen and what sort of appliances there are. In order to do this, investors need to get out there - and often times, call in the pros for another opinion.

Throughout the investing process - and not just the first one, but with each and every property purchased, professionals are needed to aid investors:

An attorney. A lawyer will help an investor wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.

Title or escrow company. The best ones to go with are the ones that work mostly with investors; they’ll speak the same language.

An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.

A CPA. Since investing should be treated as a business, an accountant is needed to help with finances and profits. The theme here is to find one that understands real estate and investors.

A mortgage broker. Again, it’s good to stick to one that understands investors and has experience with investors.

A contractor and a plumber. If the investment property is a fixer-upper, a contractor will need to come in to determine if any structural or cosmetic repairs are needed. A plumber should also be referenced as they will determine the conditions of the pipes, (if there are any leaks or major problems). Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. Investors should keep a fair distance from houses with structural issues as these tend to kill the profit.

Just as lawyers specialize in an area, so should the pros that work with investors. This helps to keep everyone on the same page - and operating in harmony.

Getting Started in Real Estate Investing

Investors need to realize that, as they embark on their real estate investing venture, although they’ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.

No one would successfully be able to start a new job without the proper training, and only a fool would be able to turn a solid profit on the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. Investors need a plan if they’re going to succeed, and they’re also going to need some help.

Investing as a collaborative effort

It’s possible to know a great deal about real estate and be particularly savvy, but there are some things that need to be left to the professionals. While the Internet can be a tremendous source of information and help with research, it just will not tell anyone what is really going on with a house. It’s important to actually get out there and see the property.

An online home appraisal will not detail the quality of the house and the condition that its features are in. Internet reports will not indicate if there are new carpets or no carpets, or what sort of fixtures are in the bathroom, or what sort of kitchen and what sort of appliances there are. In order to do this, investors need to get out there - and often times, call in the pros for another opinion.

Throughout the investing process - and not just the first one, but with each and every property purchased, professionals are needed to aid investors:

An attorney. A lawyer will help an investor wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.

Title or escrow company. The best ones to go with are the ones that work mostly with investors; they’ll speak the same language.

An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.

A CPA. Since investing should be treated as a business, an accountant is needed to help with finances and profits. The theme here is to find one that understands real estate and investors.

A mortgage broker. Again, it’s good to stick to one that understands investors and has experience with investors.

A contractor and a plumber. If the investment property is a fixer-upper, a contractor will need to come in to determine if any structural or cosmetic repairs are needed. A plumber should also be referenced as they will determine the conditions of the pipes, (if there are any leaks or major problems). Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. Investors should keep a fair distance from houses with structural issues as these tend to kill the profit.

Just as lawyers specialize in an area, so should the pros that work with investors. This helps to keep everyone on the same page - and operating in harmony.

Real Estate Investing - Building Your Team

The story goes that legendary football coach Vince Lombardi once opened a team meeting by saying, "OK men, we’re going all the way back to the fundamentals." Holding up a football he began the day’s lesson, "This is a football."

After a brief pause, one of the players raised his hand. "Coach… you’re moving a little fast for me."

Whether this tale is true or not, it does illustrate an important point. Even the best need to begin with fundamentals, and nothing is more fundamental to your Real Estate Investing business than building a team of competent professionals you can rely on. With that in mind, let’s outline the steps necessary to put together a quality team.

Take A Personal Inventory

First, you need to decide what skills you possess, or more importantly, what skills you don’t possess. For instance, if you are a licensed Realtor or a CPA, you probably don’t need to find a Realtor or accountant to work with you. Likewise, an experienced General Contractor won’t need to find another GC for his or her team.

Begin by taking inventory of what you are good at, what you can handle in a pinch, and what you know you just can’t or don’t want to do. Write your list down. Now, think about the types of people available to help you with the areas you are weak in. Here’s a list of the various types of professionals I have used over the years.

Realtor, attorney, bookkeeper, accountant, general contractor, specialized sub-contractor (roofer, plumber, electrician, heating and cooling, landscaper, etc.), handyman, engineer or home inspector, banker, mortgage broker or lender, private lender, hard-money lender, bird-dog, wholesaler, insurance agent, and commercial real estate broker.

While this is not meant to be an exhaustive list, and there may be others you need to rely on from time to time, this list should give you a pretty good idea of what types of professionals you need to be searching for. Chances are, you’re not good at all of these things, so it’s safe to say you will need to look for at least a few of these people.

Rely On The Experiences Of Others

Building a team is not something you will do all at once in a week or two. It will take time and perseverance, but it is not as difficult as it may appear. You can accomplish a great deal by asking for referrals from people you already know and trust.

Ask everyone you know about the people they do business with, and keep a written notebook of the referrals you get. I call these "warm contacts", and they are so much more useful than getting names from business cards or advertisements. Pay special attention to the names you get from other real estate investors. If your city has a Real Estate Investor’s Club, and you’re not already a member, join today! This will be a rich source of contacts, as well as local market information. You can’t afford not to be a member.

Once you have the name of a professional, an accountant for instance, you will want to meet and interview that person. Call them to schedule an appointment, and mention the name of the person who referred you. You may even want to invite them to lunch. Wherever you meet, it’s important to have a plan and know what you want to ask them ahead of time. Get to know them, and give them plenty of opportunity to talk about themselves and their method of doing business.

By all means don’t grill them or give them the third degree. You’ll find out all you need to know by simply having a conversation with them, and creatively weaving your important questions into the natural flow of the discussion. Write down the answers you find interesting, and refer back to them later when you’re deciding whether or not to hire the person. Remember to thank them for their time.

You Are The Judge And Jury

What criteria are you looking for? That depends on a few factors.

First, do you like the person? Life’s too short, and there are just too many other options, to waste time with someone you don’t want to be around.

Second, are they professional? Do they approach their business, and yours, with a serious attitude? Will they safeguard your time and money almost as if it were their own? Do you get the sense they are serious about their profession? Do they treat their business like a business and not a hobby. Incidentally, do you?

Finally, do they possess the experience, skill, and know-how you are looking for? The person who referred them to you can help answer that, but be sure to ask for additional referrals, and contact the referrals they give you. Ask plenty of questions and make sure they are fully capable of fulfilling your expectations.

Hire Them Right, And Enjoy The Journey

When you hire anybody, be it General Contractor or home inspector, make certain that you clearly define the scope of the relationship from the beginning, preferably in writing. Never enter into a business agreement involving the exchange of value (money or time) without a clear written agreement. This will save you all kinds of pain and aggravation later. The question isn’t whether someone will let you down, but when.<BR><BR>Just because you decide to put someone on your team today, doesn’t mean they will stay there forever. My team has evolved over time, and yours will too. As you work with people, you will notice things about them you didn’t see during the search process. Their methods may change over time, and your needs will change also. Don’t be afraid to end a partnership- after all, it’s a business relationship, not a marriage. Just be sure to honor all of your commitments.

Finally, enjoy the search process, and keep your eyes and ears open all the time. This can be the most exciting period in your investing life, and you never know when you are going to meet someone who would make a good fit on your team. I have found some of my most trusted advisors and professionals when I wasn’t looking, and when I least expected to find them. Many of them have subsequently become good friends.<BR><BR>Now, go make more offers!

Getting Started in Real Estate Investing

Investors need to realize that, as they embark on their real estate investing venture, although they’ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.

No one would successfully be able to start a new job without the proper training, and only a fool would be able to turn a solid profit on the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. Investors need a plan if they’re going to succeed, and they’re also going to need some help.

Investing as a collaborative effort

It’s possible to know a great deal about real estate and be particularly savvy, but there are some things that need to be left to the professionals. While the Internet can be a tremendous source of information and help with research, it just will not tell anyone what is really going on with a house. It’s important to actually get out there and see the property.

An online home appraisal will not detail the quality of the house and the condition that its features are in. Internet reports will not indicate if there are new carpets or no carpets, or what sort of fixtures are in the bathroom, or what sort of kitchen and what sort of appliances there are. In order to do this, investors need to get out there - and often times, call in the pros for another opinion.

Throughout the investing process - and not just the first one, but with each and every property purchased, professionals are needed to aid investors:

An attorney. A lawyer will help an investor wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.

Title or escrow company. The best ones to go with are the ones that work mostly with investors; they’ll speak the same language.

An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.

A CPA. Since investing should be treated as a business, an accountant is needed to help with finances and profits. The theme here is to find one that understands real estate and investors.

A mortgage broker. Again, it’s good to stick to one that understands investors and has experience with investors.

A contractor and a plumber. If the investment property is a fixer-upper, a contractor will need to come in to determine if any structural or cosmetic repairs are needed. A plumber should also be referenced as they will determine the conditions of the pipes, (if there are any leaks or major problems). Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. Investors should keep a fair distance from houses with structural issues as these tend to kill the profit.

Just as lawyers specialize in an area, so should the pros that work with investors. This helps to keep everyone on the same page - and operating in harmony.

Real Estate Investing - Building Your Team

The story goes that legendary football coach Vince Lombardi once opened a team meeting by saying, "OK men, we’re going all the way back to the fundamentals." Holding up a football he began the day’s lesson, "This is a football."

After a brief pause, one of the players raised his hand. "Coach… you’re moving a little fast for me."

Whether this tale is true or not, it does illustrate an important point. Even the best need to begin with fundamentals, and nothing is more fundamental to your Real Estate Investing business than building a team of competent professionals you can rely on. With that in mind, let’s outline the steps necessary to put together a quality team.

Take A Personal Inventory

First, you need to decide what skills you possess, or more importantly, what skills you don’t possess. For instance, if you are a licensed Realtor or a CPA, you probably don’t need to find a Realtor or accountant to work with you. Likewise, an experienced General Contractor won’t need to find another GC for his or her team.

Begin by taking inventory of what you are good at, what you can handle in a pinch, and what you know you just can’t or don’t want to do. Write your list down. Now, think about the types of people available to help you with the areas you are weak in. Here’s a list of the various types of professionals I have used over the years.

Realtor, attorney, bookkeeper, accountant, general contractor, specialized sub-contractor (roofer, plumber, electrician, heating and cooling, landscaper, etc.), handyman, engineer or home inspector, banker, mortgage broker or lender, private lender, hard-money lender, bird-dog, wholesaler, insurance agent, and commercial real estate broker.

While this is not meant to be an exhaustive list, and there may be others you need to rely on from time to time, this list should give you a pretty good idea of what types of professionals you need to be searching for. Chances are, you’re not good at all of these things, so it’s safe to say you will need to look for at least a few of these people.

Rely On The Experiences Of Others

Building a team is not something you will do all at once in a week or two. It will take time and perseverance, but it is not as difficult as it may appear. You can accomplish a great deal by asking for referrals from people you already know and trust.

Ask everyone you know about the people they do business with, and keep a written notebook of the referrals you get. I call these "warm contacts", and they are so much more useful than getting names from business cards or advertisements. Pay special attention to the names you get from other real estate investors. If your city has a Real Estate Investor’s Club, and you’re not already a member, join today! This will be a rich source of contacts, as well as local market information. You can’t afford not to be a member.

Once you have the name of a professional, an accountant for instance, you will want to meet and interview that person. Call them to schedule an appointment, and mention the name of the person who referred you. You may even want to invite them to lunch. Wherever you meet, it’s important to have a plan and know what you want to ask them ahead of time. Get to know them, and give them plenty of opportunity to talk about themselves and their method of doing business.

By all means don’t grill them or give them the third degree. You’ll find out all you need to know by simply having a conversation with them, and creatively weaving your important questions into the natural flow of the discussion. Write down the answers you find interesting, and refer back to them later when you’re deciding whether or not to hire the person. Remember to thank them for their time.

You Are The Judge And Jury

What criteria are you looking for? That depends on a few factors.

First, do you like the person? Life’s too short, and there are just too many other options, to waste time with someone you don’t want to be around.

Second, are they professional? Do they approach their business, and yours, with a serious attitude? Will they safeguard your time and money almost as if it were their own? Do you get the sense they are serious about their profession? Do they treat their business like a business and not a hobby. Incidentally, do you?

Finally, do they possess the experience, skill, and know-how you are looking for? The person who referred them to you can help answer that, but be sure to ask for additional referrals, and contact the referrals they give you. Ask plenty of questions and make sure they are fully capable of fulfilling your expectations.

Hire Them Right, And Enjoy The Journey

When you hire anybody, be it General Contractor or home inspector, make certain that you clearly define the scope of the relationship from the beginning, preferably in writing. Never enter into a business agreement involving the exchange of value (money or time) without a clear written agreement. This will save you all kinds of pain and aggravation later. The question isn’t whether someone will let you down, but when.<BR><BR>Just because you decide to put someone on your team today, doesn’t mean they will stay there forever. My team has evolved over time, and yours will too. As you work with people, you will notice things about them you didn’t see during the search process. Their methods may change over time, and your needs will change also. Don’t be afraid to end a partnership- after all, it’s a business relationship, not a marriage. Just be sure to honor all of your commitments.

Finally, enjoy the search process, and keep your eyes and ears open all the time. This can be the most exciting period in your investing life, and you never know when you are going to meet someone who would make a good fit on your team. I have found some of my most trusted advisors and professionals when I wasn’t looking, and when I least expected to find them. Many of them have subsequently become good friends.<BR><BR>Now, go make more offers!

Real Estate Investing - Building Your Team

The story goes that legendary football coach Vince Lombardi once opened a team meeting by saying, "OK men, we’re going all the way back to the fundamentals." Holding up a football he began the day’s lesson, "This is a football."

After a brief pause, one of the players raised his hand. "Coach… you’re moving a little fast for me."

Whether this tale is true or not, it does illustrate an important point. Even the best need to begin with fundamentals, and nothing is more fundamental to your Real Estate Investing business than building a team of competent professionals you can rely on. With that in mind, let’s outline the steps necessary to put together a quality team.

Take A Personal Inventory

First, you need to decide what skills you possess, or more importantly, what skills you don’t possess. For instance, if you are a licensed Realtor or a CPA, you probably don’t need to find a Realtor or accountant to work with you. Likewise, an experienced General Contractor won’t need to find another GC for his or her team.

Begin by taking inventory of what you are good at, what you can handle in a pinch, and what you know you just can’t or don’t want to do. Write your list down. Now, think about the types of people available to help you with the areas you are weak in. Here’s a list of the various types of professionals I have used over the years.

Realtor, attorney, bookkeeper, accountant, general contractor, specialized sub-contractor (roofer, plumber, electrician, heating and cooling, landscaper, etc.), handyman, engineer or home inspector, banker, mortgage broker or lender, private lender, hard-money lender, bird-dog, wholesaler, insurance agent, and commercial real estate broker.

While this is not meant to be an exhaustive list, and there may be others you need to rely on from time to time, this list should give you a pretty good idea of what types of professionals you need to be searching for. Chances are, you’re not good at all of these things, so it’s safe to say you will need to look for at least a few of these people.

Rely On The Experiences Of Others

Building a team is not something you will do all at once in a week or two. It will take time and perseverance, but it is not as difficult as it may appear. You can accomplish a great deal by asking for referrals from people you already know and trust.

Ask everyone you know about the people they do business with, and keep a written notebook of the referrals you get. I call these "warm contacts", and they are so much more useful than getting names from business cards or advertisements. Pay special attention to the names you get from other real estate investors. If your city has a Real Estate Investor’s Club, and you’re not already a member, join today! This will be a rich source of contacts, as well as local market information. You can’t afford not to be a member.

Once you have the name of a professional, an accountant for instance, you will want to meet and interview that person. Call them to schedule an appointment, and mention the name of the person who referred you. You may even want to invite them to lunch. Wherever you meet, it’s important to have a plan and know what you want to ask them ahead of time. Get to know them, and give them plenty of opportunity to talk about themselves and their method of doing business.

By all means don’t grill them or give them the third degree. You’ll find out all you need to know by simply having a conversation with them, and creatively weaving your important questions into the natural flow of the discussion. Write down the answers you find interesting, and refer back to them later when you’re deciding whether or not to hire the person. Remember to thank them for their time.

You Are The Judge And Jury

What criteria are you looking for? That depends on a few factors.

First, do you like the person? Life’s too short, and there are just too many other options, to waste time with someone you don’t want to be around.

Second, are they professional? Do they approach their business, and yours, with a serious attitude? Will they safeguard your time and money almost as if it were their own? Do you get the sense they are serious about their profession? Do they treat their business like a business and not a hobby. Incidentally, do you?

Finally, do they possess the experience, skill, and know-how you are looking for? The person who referred them to you can help answer that, but be sure to ask for additional referrals, and contact the referrals they give you. Ask plenty of questions and make sure they are fully capable of fulfilling your expectations.

Hire Them Right, And Enjoy The Journey

When you hire anybody, be it General Contractor or home inspector, make certain that you clearly define the scope of the relationship from the beginning, preferably in writing. Never enter into a business agreement involving the exchange of value (money or time) without a clear written agreement. This will save you all kinds of pain and aggravation later. The question isn’t whether someone will let you down, but when.<BR><BR>Just because you decide to put someone on your team today, doesn’t mean they will stay there forever. My team has evolved over time, and yours will too. As you work with people, you will notice things about them you didn’t see during the search process. Their methods may change over time, and your needs will change also. Don’t be afraid to end a partnership- after all, it’s a business relationship, not a marriage. Just be sure to honor all of your commitments.

Finally, enjoy the search process, and keep your eyes and ears open all the time. This can be the most exciting period in your investing life, and you never know when you are going to meet someone who would make a good fit on your team. I have found some of my most trusted advisors and professionals when I wasn’t looking, and when I least expected to find them. Many of them have subsequently become good friends.<BR><BR>Now, go make more offers!