Last week went over some attributes that are beneficial when adding any member to your real estate team (good reputation, positive attitude, shared values, problem solver). We also discussed a few of the real estate professionals you should employ and why. Now let us continue our exploration of the real estate team members you should be working with.
Your team of real estate professionals should include:
- Real Estate Agent/Broker
- Insurance Agent
- Title Agent Rep.
- Certified Home Inspector
- Mortgage Banker
- Property Manager
- Real Estate Attorney
- Closing Person/Escrow Officer
Accountant: There are many reasons for having an accountant. Their input is an important part of the due diligence process. They can also be useful in offering ideas on how to handle tax matters, projections, depreciation and how an investment scenario may affect your personal financial situation. An accountant can also be helpful when it comes to getting a loan and the required documentation needed. Having an accountant who knows your complete financial picture is incredibly valuable.
The next question that you might ask is, “What kind of accountant do I need?” Do I need a CPA? Well, a CPA (certified public accountant) has passed an exam that allows them to certify financial statements. If using a CPA, make sure that they specialize in taxes and real estate. It may be more suitable to find an EA (Enrolled Agent or a CFP (Certified Financial Planner). These professionals are able to provide advice on taxes, asset planning and structuring real estate investment.
Title Representative: A title agency role can be different from state to state. In general they handle three responsibilities:
- Neutral third party that facilitates closing
- Verifies the chain of title on a property
- Ensures title and guarantees that the person currently on the title can legally transfer title to the property.
As you can see, there are a variety of different services that a title agent/company provides throughout the sale process.
Certified Home Inspector: A certified home inspector inspects the subject property with a fine tooth comb and creates a written inventory and/or report of all the needs and issues related to the property. The Inspectors job is to point out any and all problems with the property, but cannot offer any cost estimates to repair the issues. There are many issues that can’t be detected by the lay person, such as issues with foundation, mold, hazardous materials, roof or the structure. This is one reason an inspector is so valuable.
You might think, “I’m handy, why would I need a contractor?” Contractors are professionals; they deal with various trades that are often needed on larger remodeling projects, such as major plumbing, electrical and drywall just to name a few. A good general contractor can help minimize surprises and help a project meet its timeline. If you want to learn more about contractors check out my article on fix and flip properties.
More job descriptions for real estate professionals that can help you become a successful real estate investor to follow next week.
Diana D. Hill – firstname.lastname@example.org