Real Estate investing is not a solitary business. It takes a whole team of real estate professionals, and knowing who you need on the team is of utmost importance. There are fourteen key professionals that I suggest you have on your real estate team.
- Real Estate Agent/Broker
- Insurance Agent
- Title Agent Rep.
- Certified Home Inspector
- Mortgage Banker
- Property Manager
- Real Estate Attorney
- Closing Person/Escrow Officer
When recruiting your real estate team, you want to be selective. These are some of the attributes I’d suggest you look for:
- Having a good reputation in their field
- Having a positive attitude
- Sharing core values
- Being a problem solver
Now let’s begin to explore who each of these professionals are and what they add to your team.
Coach: Can be a teacher, advisor, counselor and motivator. A coach supports you in accomplishing goals and getting you from where you are to where you want to be. Why is a coach so important? Well, we all need support, a cheerleader and someone we trust to push us past our comfort zone.
As a real estate investor, you must be a self-starter and disciplined but we all achieve more when we have someone who holds us accountable. This is an important role for a coach.
Broker/Agent: A Broker/Agent is a real estate professional. Each state has its own set of rules for licensing real estate professionals. In general terms, being a broker requires the highest level of licensing obtainable in the industry. There are several types of brokers – Broker Owner (owns the company), a Managing Broker (one who has the responsibility to oversee agents), or a Broker Associate (one who works alongside other brokers and agents). A broker carries the legal responsibility for transactions. An agent can only practice under the direct supervision of a broker. Similar to an apprenticeship.
Real Estate professionals can be useful for various different reasons when it comes to real estate transactions. Here are a few examples of where they lend value:
- Getting access to the MLS
- Marketing a Property – statistically it is proven that a real estate professional will get a higher sales price than a non-agent.
- Legal issues – Real Estate is full of complex legal issues and real estate professionals can make them simpler to understand and legally protect you.
Insurance Agent: An insurance agent must be licensed by your state but can also be licensed in many states. You might be able to get a great deal on your car insurance or renters insurance on the internet but as an investor, you need a professional who can help you analyze the big picture. An insurance agent will help you understand the potential liability you could be exposing yourself too. A good agent will advise you on the applicable insurance for a specific property, as well as advise you to the appropriate umbrella policy that covers all assets.
Over the next few weeks we will continue to look into the various real estate professionals you’ll want on your team to help set you up for a successful real estate investing career.
Diana D. Hill