For the inexperienced, entering the world of residential or commercial real estate investment is definitely a process fraught with risk. Not only are there bad deals but also unscrupulous dealers. For this reason, the novice real estate investor should build a strong team around them to advise on a deal and help evaluate it. Here are some tips on finding the most important team members:
Use Good Brokers to Find the Deal – Obviously, there is no need for a real estate investment team without the deal itself so, in many ways, the broker who finds the deal is the most important player and must be nurtured. Still, there are other reasons to build a relationship with one or a few reputable brokers so you can see some of the best deals before anyone else.
Use the Right Inspector to Identify the Problems – Not to demean the profession, but there are many inspectors who simply go through a checklist of items and report the obvious results to the potential buyer. It takes a superior one with many years of experience to identity potential problems. In many cases, this identification is the difference between a superior deal and a merely adequate one.
Obtain the Best Contractor to Fix Them – The majority of real estate investment deals hinge on the ability of the buyer to rehab the property at an affordable cost. In addition, the availability of a contractor is crucial to this process. In short, having a contractor who can reliably meet your budget and your timeline is essential for making your deal profitable.
Rely On a Reliable Lender to Find the Money – Most inexperienced real estate investors understand that “time is money.” Unfortunately, they do not always realize that this means that time is of the essence. Once a superior real estate deal is identified, it behooves everyone to move as quickly as possible lest someone else steal the prize. In this situation, nothing is more valuable than a seasoned lender who can act swiftly with your best interest in mind.
Bring It All Together in One Place – It is one thing to recognize that you need all these team members; it is another to bring them all together at a reasonable cost and in a reasonable time frame. Fortunately, there is place where these distinct skills are brought together – Hard Money Lenders. Consider one when contemplating your next real estate investment deal.