Nicholas Statman has been buying, selling and developing property since 2001, and in that period he has traded thousands of properties.
If you ask a successful property investor the tricks behind sourcing, revamping, marketing, and selling properties for profit, they’ll tell you it’s all about building a strong team. While one of the advantages to property investing is being able to work to your own schedule, it does require working with other industry professionals to ensure things are done well. To build a strong property investment team, you need people who are good at what they do, that are reliable, and are passionate about the industry. As you begin to put together an all-star property investment team, make sure you include these eight impact players:
Estate Agent or Property Sourcer
Finding the right estate agent can make the difference between a growing and profitable portfolio and remaining stagnant in the industry. The responsibility of an agent on your investment team is to bring a comprehensive understanding of the property market to your team. They also have access to multiple listings, and find deals on your behalf. Working with an estate agent allows you to stay connected with the current trends of the property market.
As you search for the right agent for your team, it is important to remember that estate agents work specifically with homeowners while sourcers work with investors. You want to work with an agent who has experience working with property investors.
Property investing is one of those investment strategies where you need money upfront to make money in the long run. Having a proactive mortgage broker on your side will help to speed up the loan process, a process that when delayed, can negatively impact the buying or selling of property.
Unless you are a general contractor yourself, you are going to need to have someone with this type of home repair and renovation experience on your team. As you acquire, sell, and revamp properties, you will need the expertise and resources of a contractor to get a lot of the work done. When you find a general contractor that you trust and work well with, keep them close. They have connections to specialty contractors such as painters, plumbers, electricians, and other industry professionals that you will eventually need as you buy and sell property.
Property investing can be an exciting and profitable investment strategy. However, it is essential to be very intentional about balancing the money that comes in with the money that goes out. A large part of property investing, especially in the beginning, is figuring out the details of financing. An accountant can also help prepare your tax returns and can give you professional tax advice. Is important to look for an accountant who has experience working with property investors and understands the market.
Being successful in the property management industry means always being aware of the legal requirements and guidelines associated with this type of investment. Laws and regulations are always changing when it comes to property investment, and it can seem impossible for someone unfamiliar with the legalities of property investing to keep up with all of it. A solicitor who has experience with the property market and investing can help you draft legally binding documents and execute them correctly. Property investment solicitors can be extremely helpful for investors who specialize in commercial properties. They can assist with:
- Acquisition of commercial property
- Structuring transactions
- Handling property investment funding
- Setting up of Special Purpose Vehicle (SPV)
- Assisting with property management issues
If your goal is to buy a property, upgrade it, and then rent it out to tenants, it is recommended to have a trusted property manager on your team. Screening tenants, handling rent payments, and communicating with tenants daily can be a full-time job. Many property investors don’t have the time to dedicate to this part of the investment process. Having a property manager on your team allows you to hand off these responsibilities to another industry professional that you trust.
As you begin to buy and sell property, it is important to have an experienced set of eyes look over your property to ensure there are no defaults or issues that have been missed. Having a qualified surveyor that you trust on your team allows you to rest assured that your properties aren’t hiding any defects that could impact the transaction process. Once a surveyor does a thorough check of the property, his or her report can determine whether or not the purchase moves forward. Their findings can directly impact the sales price and gives the seller a chance to make necessary repairs before continuing with the sale.
In any investment, there is a risk. Where there is a risk, there is a need for an experienced insurance broker. This type of specialist is an expert in property insurance and risk management. They work on behalf of the client and work with a wide range of insurance companies directly. Having this type of industry professional on your team makes it easy to understand the details of a complicated insurance policy. They can also help you determine what level of coverage you need. An experienced insurance broker can assist you in ensuring long-term and short-term construction projects and even offer business liability coverage.
Your success in property investment depends significantly on the team of industry professionals you have behind you. While it is impossible to do it all on your own, it is also costly and time-consuming. It is important to build a network of experienced, qualified and trusted industry professionals to leverage time and money, work harder not smarter, and maximize your ROI.