The most important step in creating wealth in real estate is to build your real estate power team.
T.E.A.M: together everyone accomplishes more!
Your Real Estate Power Team
Your real estate power team includes a Lender, Realtor, RE Attorney, RE Accountant, Property Manager, Handymen, Plumber, etc, etc.
So how to you find all the components of a large team like this? You can try and figure out OR find the right real estate professional who will have this power team already in place and you can start immediately.
Henry Ford said, “Why should I clutter my mind with general information when I have men around me who can supply any knowledge I need?” He was a smart man because he realized that he didn’t need to know it all if he could consult with others that did.
Ronald Reagan’s cabinet was said to be the team of the brightest people in politics. The bottom line is that if you want to succeed faster with less risk, have someone you can call on for knowledge.
Too often people start the process backwards and without a plan. They first want to look at property. If you find yourself doing this, STOP and think it through first you will want to:
- Create at least a 5 year plan of what you want to accomplish with your real estate goals
- Next start to identify your power team and find a real estate strategist or counselor (they should have access to most of the other members that will make up your power team)
- You will want to make sure you feel comfortable with each of them and, of course, you can always find your own as well
- Work with your Realtor to identify areas you would like to invest in based on the market conditions at the time of investment (remember location is key to real estate)
- NEXT talk to your tax professional to set up entity structure (keeping a long term perspective in mind)
- Have your liability questions in place and talk to your real estate attorney and he or she should be on the same page as your tax professional. Remember one wants to protect your tax dollar while the other wants to protect your assets so make sure they communicate for optimum structure set up.
Only after you have done all of these steps should you even consider putting in an offer on a property. This will put you years ahead of other investors who are just throwing money at the wall to see what sticks. Face it, after the market meltdown we just had, you want to position yourself better than all those who lost their shirts over the past several years.
Now that you pinned down the location and the property, you want to scout for the best property manager, service men, handyman, etc. Many hands make light work and professionals in their perspective industry will assist your wealth building portfolio far beyond the strategy of hope because I always say, “hope is not a strategy” so be purposeful, create the plan and get the power team in position. Happy investing.