As a real estate investor, you can’t be expected to know every single corner of the business—especially if it’s your side hustle. Whether it’s real estate law, finance, contracting or any other subject that falls into real estate investment, you need expert professionals on your team who you can trust with your business.
Table of Contents - 4 Professionals Every Investor Should Have in Their Corner
Real estate investment isn’t a solo job. Many people are involved in the journey from identifying a property to earning a profit. When you’re establishing your real estate investment venture, there are four people you want to have in your corner to set you up for success. Let’s meet them.
An accountant lets you know a critical piece of information: How well your investment venture is performing. When it’s time to buy, sell or make a big move, your accountant will offer you a full financial picture to inform your next decision. The day-to-day transactions like rental income, maintenance and mortgage? Your accountant will keep track of it all.
Accountants can do more than just tell you how much money you have. They also help you save money by identifying deductions on your tax return and keeping up to date on the latest changes to the tax code.
If you try to manage your finances, you may leave money on the table or risk costly mistakes. When working together, your accountant can focus solely on your finances, leaving you to worry about the other hats you wear. In the long run, a great accountant will ultimately save you more money than the cost.
When hiring an accountant for your business, identify candidates who are familiar with real estate investment. Ask about the type of work the accountant does for current or previous clients, and any specialties the accountant might have. If the accountant is a certified public accountant that’s a bonus but not necessarily required.
Most importantly, you want to find an accountant with whom you feel comfortable and whom you can trust. As the person handling your finances, you need a stellar working relationship with your accountant.
A reliable realtor
Hopefully, you are doing your due diligence on where you want to buy your next investment property. It’s not safe to buy a house when you know nothing about the average sale value, property taxes, demographics, nearby attractions, etc. While you should do your research, it’s unlikely you’ll know as much as an expert. Enter the realtor.
First, a distinction: A realtor is a real estate broker licensed through the Canadian Real Estate Association. Realtors have had additional training beyond what is required to become an agent. They participate in continuing education opportunities to maintain their status. They also adhere to CREA’s strict ethical code. When deciding who to add to your investment team, you may feel more confident with a certified realtor.
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The realtor you add to your team will need to understand your investment goals and the return on investment you want. Ideally, the realtor will have experience working with investors and may even be an investor too. Securing a profitable investment property means snatching the good homes first, so you’ll need a realtor who is well established and well connected in the area, who can help you move quickly.
With a knowledgeable realtor on your team, you can be confident someone else is dedicating time to finding you the best new investment.
Your mortgage broker
The amount of return you earn on your investment depends on how much you spend on your investment property. Your mortgage broker is tasked with finding you the best deal among several lenders and securing you enough credit to buy your next property.
If you’ve gone through the mortgage process before, you may wonder why you need to pay a broker to find you a lender. Not all mortgage lenders are the same, and the lender behind the mortgage for your primary residence may not understand investment properties well enough to give you a fair deal on your second or third property. If you’re buying a property with more than four residential units, you’ll need someone to help with a commercial lender.
If you’re looking for a mortgage broker, ask other investors who they hire. Avoid working with brokers who are tied to a bank, as their product offering may be limited. As with your accountant and realtor, you’ll want to work with a broker who has experience securing loans for investment properties. You need someone who knows to ask the right questions and how to sell lenders on your venture.
We recommend LendCity Mortgages for investors. They have a large team and they specialize in working with investors.
A knowledgeable mentor
Real estate investment is a rewarding field, but it can be confusing for newbies (and even well-established investors) to navigate the ins and outs. When decisions feel like they have high stakes, it helps to have someone you can trust.
An ideal mentor has several more years of real estate investment experience than you and has built a portfolio similar to the one you wish to create. Your mentor doesn’t necessarily need to live nearby, but it would help to be able to discuss local or regional concerns and how they factor into your decision making. You’ll be looking for someone who can give you trustworthy advice and with whom you can share your fears, so make sure you find someone who makes you feel comfortable.
Finding a mentor isn’t always easy. Much like finding a friend, the relationship needs to happen organically. Look on sites like Meetup for local real estate investment groups to join. Attend regional or national conferences and hit up the networking events. Don’t be afraid to reach out to someone you admire online – chances are, that investor was in your place once too.
Real estate investment is a team effort. Even if you’re the only one doing the investing, there is a community of people ready to help support you. Check out our private Facebook page here to access help from others, or attend a local real estate investors group.
Bookkeeping for Realtors and Real Estate Agents - Accounting for Small Business - Money Management
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