In the last article I gave you the broad strokes of Real Estate investing. In this segment we will drill down and explore some of the key points in more depth.
In the last segment I stated, “It cannot be overstated that assembling a team of trusted advisors to assist in your investing is the most important thing you could do to further your success in real estate investing.”
The first advisor we will cover is the Insurance Agent. The typical agent is most likely not familiar with insuring investment property. When you find one that is he or she will make your investing life so much easier. Insuring an investment property is quite a bit different than buying homeowners insurance for the home you’re living in. The coverages are dramatically different and your agent can give you valuable tips to make sure you buy the right coverage for the right price. It pays to ask an agent you’re considering if they are familiar with insuring investment properties. If they have not insured any recently I would suggest you find a different agent to interview.
The next professional is your real estate agent. Try to find agents that are investors themselves or already work with investors. Finding one that understands investing should make the learning curve a little easier for both of you. An agent that specializes in investors will know how to find the best deals and also how to structure the offers to maximize the approval process. A good agent will not cost you anything to buy and is well worth their fee when you sell.
The next professional is your CPA. Again, one attuned to real estate investing is always a plus. However, a good CPA will be able to assist you and minimize your tax bill regardless of specialty.
A lawyer that specializes in real estate investing and wealth preservation is a must to enhance your investing career. A good attorney can structure deals to maximize returns and minimize or even eliminate tax liability.
The next trusted advisor is a good title company like Ace Title. The job of a title co is to make sure the instructions from the buyer and seller are carried out via the purchase agreement, to research and insure the title, to make sure the funds are transferred to the proper parties, and to record the transaction in the county records.