A real estate agent? A lawyer? A Contractor?
By the end of the post, you will know exactly who you need to start investing in real estate.
When I was starting out, I was like “how the fuck do I do this shit.”
So like anyone else, I started reading books and all of them talked about building a real estate investing team. They listed so many damn people on who you need to have on your team. The problem is if you are a beginner, this just overwhelms you and places a barrier in front of you making you lost and not really knowing where to start.
So in light of that, I decided to tackle this topic and make it super clear to describe exactly when you need someone on your team when buying your first property.
I created this Google form that takes what stage you are in all the way from complete beginner, to your first house and then generates a list of people who you need right now. No bullshit, its free, its at the bottom of this blog post.
Stage 1: This is the starting stage. You are looking at properties and maybe analyzing them. maybe just maybe you started making offers on some. Who do you need on your team at this stage?
The first person is a Mortgage loan officer. They work at a bank or a financial institution that can give you a mortgage. You need financing to buy your first house. Unless you are part of Trump's family and could buy half of manhattan if you wanted. You need to call one to get pre-approved for a loan. This is very easy.
You call them and tell them a few things about what you need. They will ask you financial questions like how much money you have, how much you make, your credit score. Based off that they will give you a pre-approval letter. This letter will give you credibility. It shows that you are seriously looking to buy a house and a bank will give you money for it.
Now once you have your pre approval letter. You are going to need to go look at a real physical house. Yes. I am talking go in person. None of the online shit.
Use the internet to vet some properties and do some quick calculations, but then you will need a real estate agent to go look at a home on the market that you are interested in buying. This is also simple.
If you are on Zillow, there is a button right on the page that makes it easy for you to call an agent.You may have to do this a few times unless you find the right agent on your first try. A Right agent will be one that can act quickly, is super knowledgeable about the area, and understand the perspective of an investor this way you can make sure they send you the right homes.
In the beginning that is all you will need. Just the pre-approval letter from the loan officer and an agent to send you properties. Now, let's say you have made a bunch of offers. You get one accepted. Now you are in Stage 2: You got the offer accepted and under contract but need to get it to close before you actually own it.
As soon as the contract is accepted, you will need a lawyer on your team. You have 72 hours to get a lawyer to take the original offer and make a real contract, while making some changes to the contract that you ask for. This is period is called attorney review. You will use a lawyer from this point on to protect you legally, help you back out of a contract that might turn out bad, get the title and everything else till you actually own the house. But they are expensive, so yeah watch out with that.
Once that is done, it's typically up to the buyer to get an inspection on the house to make sure that they check to see what is actually wrong with the property. So you must find an inspector for this. Your agent might know one, but ask around for one. A good inspector will write an inspection report flagging everything wrong with the property that makes you feel like you know everything that is wrong with the property. This way you can then use that to either back out if things are terrible or to reduce the price based on how things are.
Lastly, a few days before you close on the house, you will need a home insurance broker. They will find a home insurance policy that protects you for the best price. Why do you need home insurance? Mortgages will require it, so they are also protected as they are technically buying a lot more of the house.
Ok now that you have all these things you will be able to close on the property and officially make it yours!!! Congrats!! Great job. This is really the start of the journey. Welcome to Stage 3: You own a home and are renting it out.
The first thing you will need here is typically a property manager. If you are like me and don’t want to waste all your time being a landlord then this is perfect for you. You hire a company that typically charges a fee as part of the monthly rent, and they are the landlords for you and manage everything. This is gonna save you a lot of time.
Once you have one, next you will need to fix things that are wrong with the property. I am talking bathrooms, kitchens, you name it. For this, you will need a contractor. This person is knowledgeable and experienced will do the job right and save you money in the long run, so do not cheap out on this.
Lastly you’ll need an accountant. Well if you like saving money that is. The accountant will help you maximize your deductions on a property this way you save money on taxes and maximize your income. This sounds like a good deal. Especially if you aren't good at math…
This tool will take you maybe 90 seconds to finish and then you will have an email in your inbox with exactly who you need on your team right now. If you want help buying your first investment property you can book a free session with me here: https://calendly.com/investarters/free-consulting-session