When you’re doing the research and collecting the capital to break into real estate investment in Canada, it’s only natural to want to increase your returns by going it alone. Investment attracts do-it-yourselfers who wish to earn a living outside the typical structure of things. That’s admirable, but for fledgling real estate investors, it’s also a big-time mistake.
Table of Contents - Invest in Real Estate Like a Rockstar. Start with an Entourage!
- Start with a good lender
- Find your perfect real estate agent
- Enlist a property manager before you buy
- Former construction pros make the best inspectors
- Go local with your lawyer
- Find the right numbers person
- Team up with a single insurance broker
- Communication is key for your escrow officer
- Value your cleaning crew
- Find a trustworthy landscaper
- How To Get Started In Real Estate
When you’re entering a new field of investment, it’s crucial to ensure that you surround yourself with experienced professionals who you can trust. After all, it’s the truly gifted person who understands the limitations of their knowledge. So, as you begin to take your first steps into the world of real estate investment, here are some people to get in your corner as soon as possible.
Start with a good lender
Depending on your needs, you can choose between two options for financing your investment. If you opt for a traditional banker, you’re bound to get fewer options for your loan, but you may find that the financial terms of future projects shift in your favour over a long enough timeline.
The other option, a mortgage broker, acts as an intermediary between several lenders. Their job is to search through the pile of deals to find the best one for you. Ideally, you can forge a relationship with both a mortgage broker and a banker who will help you with your current and future investments.
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Find your perfect real estate agent
The key to finding the right real estate agent for your needs is locating someone who has experience working in both the specific real estate sector you want to break into and the specific geographic market you want to enter.
If you’re hoping to wedge your way into an urban commercial market, you don’t want to hire a real estate agent whose primary experience is in residential real estate. Research professionals in your area whose expertise aligns with your goals.
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Enlist a property manager before you buy
Property managers save investors and landlords a lot of headaches, making your investment experience more pleasant. You can choose to hire an individual and pay their salary and overhead, but most first-time real estate investors find it simpler to hire an experienced property management company. Either way, you choose to go, make sure you steer clear of utilizing a rookie.
Experienced property managers bring with them a huge assortment of benefits. For example, knowledgeable property managers can suggest what to charge for rent in a given area of the city and even indicate areas to look that may provide a quicker or more certain return on your investment.
Former construction pros make the best inspectors
When you’re considering the purchase of a new piece of property, the inspection can make or break the deal. Unfortunately, it’s extremely easy to get an inspection license. As a result, the number of talented home inspectors is few and far between.
To ensure that you’re getting the best deal possible, consider hiring an inspector with on-the-job contracting experience. Men and women who have had to construct buildings for a living are more likely to spot issues that could render your investment unprofitable before you invest your dollars.
Go local with your lawyer
Another essential component of your real estate team is the lawyer. You’ll want to choose someone intimately familiar with the state, local and regional laws regarding real estate investment.
If you live close to the border of another state and you’re considering investing in property across the state border, you’ll need to seek out the advice of a legal professional licensed to work in that state. The familiarity they’ll bring to the job is worth the initial investment.
Find the right numbers person
You might have a mind for numbers, but that doesn’t mean managing the books behind your investments is a good idea. You need to enlist the help of someone who not only knows the ins and outs of bookkeeping but who can also keep abreast of any adjustments to the law or regulatory changes.
Team up with a single insurance broker
As a mortgage broker, an insurance broker’s job is to do the legwork and examine several insurance offers. When you’re contacting references, keep an ear open for former or current clients who praise their broker’s ability to save them some cash.
There’s a lot of value in ensuring all of your real estate properties with a single insurance agent, as the increased volume will likely entitle you to a deal on your overall rates.
Communication is key for your escrow officer
Truly independent escrow officers are hard to come by. More often than not, they’ll be one agent in a larger company. This isn’t usually an issue, just be 100 percent sure that when you add an escrow officer to your team, you’ll be working with them and them alone.
As for what to look for in an escrow officer, make sure they’re able to relay the terms of any real estate closing contract clearly and succinctly to all parties involved.
Value your cleaning crew
Whether you’re sprucing up a home to turn it into a rental property or you’re prepping the place to sell, you’ll need to have it thoroughly cleaned inside and out. You could put in the elbow grease yourself, but you’ll find the result much better if you hire a professional cleaning company. Your cleaning company is just as important as any other member of your team. Done correctly, a cleaning job can act as a facelift on any property, residential or commercial.
Find a trustworthy landscaper
If you’re investing in a property with a lawn, give serious thought to having a lawn company keep your grounds maintained. Even if you’re planning on converting the property into a rental opportunity, the average renter can’t be trusted to keep the lawn maintained well enough to keep your curb appeal where it needs to be.
You can’t do it all alone. A great real estate investor knows the value of building the perfect entourage.
How To Get Started In Real Estate
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