It's a Team Effort

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Investing in real estate is a team sport. You can't be expected to know every aspect of the business; there's just too much to know and you will end up wasting precious time on things other people can do for you or with you while you continue to look for other properties and move on to the next deal. Here is a short list of some of the people you will need to be on your team:


Your Business Team:

• Attorney who specializes in business and real estate law. He will help you set up your business and keep it in accordance with the law.
• Accountant who can help you with personal and business financial situations, and who also knows the in's and out's of real estate tax laws.

The Property Search Team:

• Real Estate Broker/Agent will help you understand the market you wish to invest in and bring the properties that will profit to you.
• Property Manager to asses multifamily properties you wish to invest in from a management standpoint. Also need a good company to manage your property once you buy it (you don't want to do it all yourself, takes too much time

The Offer Team:

• Attorney will review contracts and make sure they are legally binding.
• Lender/Mortgage Broker who is familiar with property investing (they may even provide you with good leads on other properties).
• Investors can bring in extra sources of capital for investments
• Contractor/Rehab specialist is good for property walk-throughs. They will help you determine the cost of minor & major repairs.

Other Team Members:

• Appraiser who specializes both in your market and the types of properties you target. They not only help determine value of a property before you buy but can project value for after you buy (fix, improve management, etc.)
• Architects are for when you need more than just cosmetic repairs, but major reno's.
• Insurance Agents. Every property needs insurance, and you need the best deal. Every year or two you should also get new bids on insurance to see if you can save.
• Property tax consultants are great. Tax laws can be too confusing, get professional help.
• Income tax consultants also help maximize tax advantages in properties.
• Estate Planners help you shelter and dispose of assets in case of illness or death. Good for when you have a substantial amount of properties.
• Environmental Company/industrial hygienist. Good if you suspect mold or asbestos, or any other environmental hazard on a property.
• Surveyor to help with boundary lines, elevations, etc.
• Structural Engineer in case improvements affect the structural integrity of a property.

Keep in mind that you don't need all these people at once. You can slowly add them as you need them. The people you must begin with though, are your attorney, accountant, real estate professional, and mortgage broker. Also remember that all of these people can help generate leads to other properties, investors, contacts, etc. If you plan to invest in more than one location, like me, you will need a team for each location.

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Thing on My Plate

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The past couple of weeks, since the seminar and my determination to get this business going, have been CRAZY! On my list of things to do:

• Research, research, research!! Not only research the market, but also how to start a business, where to invest, what to invest in, hard money lenders, networking groups, how to obtain information, HOT spots, and as you can imagine a plethora of other topics.
• Learn. I've read two books since the seminar. Taken two online classes: one about foreclosures, and another about setting up a business plan.
• Get the biz set-up. This is perhaps the most difficult and perplexing thing on my plate right now. We live in Hawaii, want to invest in Utah, Nebraska, and Oklahoma. Which location do I set up the business? The place where I live now, the place(s) we'll live in the future (Utah and Nebraska), both locations? I don't know. I'm talking to attorneys and accountants in Hawaii right now, but when I go to Utah in a month and a half I'll be talking to attorneys & accountants there to figure out where we'll end up setting up the biz. Either way, we'll have to do business long distance.
• Set up my POWER TEAM! I need to ask around, find, call, interview, and research the following people to put on my team for EACH STATE we plan to invest in. Attorney, accountant, tax professionals, real estate agent or broker, mortgage broker, contractors, property management companies, commercial broker, insurance broker, appraiser, architect, environmental consultants, engineers. The most immediate and important at the moment being attorney, accountant, real estate agent, & mortgage broker. The rest I can slowly add to the team depending on what I'm going to invest in (most likely I'll need a good contractor and property management company soon).
• Network. I've already joined a couple of real estate investing groups online for both Utah and Hawaii, now I just need to go.
• Find funding. I don't even want to think of this one yet...but I am. Since I'm new and haven't done much networking yet, I don't know all the investors (let alone what to say to them or how to work with them). I also don't have a mortgage broker set up; really important for funding. Yikes!! I'll get it done, but for now it's a huge stressor.
• Find properties. This is mostly done online right now since our immediate investments are on the mainland (more affordable to get into in order to start creating cash flow and earned income). Also, what we are looking at right now is mostly research. Looking at the markets, then the properties available for those market, performance expectations for various areas, which locations are better for which investments, cap rates, ROI, REO's, pre-foreclosures, etc. I need to know as much as I can about these markets now, so that when I go there (in the next month or so) I'll know what's a good deal, what's not, what I'm looking for, etc. Basically all the facts so that when I find something I can hop on it, then bring it to an investor, or get the funding from a broker.
• Schedule. I need to, and actually have, set up my class and traveling schedule for the next couple of months. This is what I have so far. Sept 12th, Honolulu, Rich U class. Sept 25th, Wholesale class, Bakersfield. Oct 9th, Foreclosure class, Dallas. Oct 18th, Mobile Home class, Utah. Oct 30, Lease Options class, Denver. Nov 13th, Rehabbing class, Las Vegas. Dec 4th, Creative Financing class, Honolulu. Unconfirmed, Dec 11, Commercial Properties class, Atlanta. I'll also be in Utah, my first investment area, from Oct 12-Nov 11 (fly out and attend classes periodically). That's 8 confirmed classes with one pending. Not bad. Plus for much of that time I'll be where I want to invest. Awesome!

As you can see, I have a lot on my plate right now. I work every day towards my goals and cross off things every day as well. That doesn't, however, diminish the fact that I still have A LOT to do!!! Wish me luck, give me advice, give me a contact, or just read this blog.