To be successful as a full time real estate investor, you will need to create a support team that will help make you rich. We like to call this your "entourage of experts." We are continuing in our series.
If you missed the previous article – Creating your Entourage of Experts – Part 1
The question to be asked is: how many people do we need locally and how many people can we utilize outside of where we live (by that I mean other towns or cities that we are, or plan to do business in).
Let’s think about it… we need at least two realtors in a city with a population of less than 500,000. We could use four realtors in a city with a population of under 1,000,000 and we could use 6 or more realtors in a population that is 1 million plus. It is OK that they know you use more than one realtor, however, if you find an amazing one or two, it may not matter how big the city is if they are getting you deals.
In different cities/towns
In different cities we will also need: a property inspector that is specific to that area/town; we will need at least 2 general contractors that are specific to that area/town; we will also need an appraiser that is specifics to that area/town; and we can either use a local mortgage broker with the ability to lend in other cities, or be able to use mortgage brokers in different cities.
The advantage to that is when the mortgage broker knows that town, when he/she is getting funded from a lender that is local, they are a lot more confidant about the local properties than a lender that is not from that city. Even though it can be done, it may be a better choice to have local mortgage brokers. If you are utilizing private lender, definitely private lenders should be local. Private lenders generally like to lend in areas that they know.
Your insurance broker would be also somebody that would insure on a per city basis (so not necessarily a local insurer). Why is that? Because they need to send their people out, and the more familiar your insurance people are with the area, the better rate that you will get; and even getting insurance may be a result of that insurer knowing the area and knowing that property.
You will need a lawyer in each area. As much as a lawyer can close a deal in the same province, it is much better, and cheaper for you, if the lawyer actually knows the area. The process of sending documents back and forth to perhaps the sellers lawyer, not to mention area familiarity is important. Most lawyers are much more comfortable faxing or delivering documents locally and doing business within their community.
The only true local team member
The only part of your team that can be local to you (it doesn’t really matter where they are) is your accountant.
Where are they? How do we interview them? We will be getting to that in this series of articles.
Canadian Wealth Builders offers many unique, practical, "out of the box" real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.canadianwealthbuilders.com
For the next article in the series – Creating an Entourage of Experts – Part 3 – Choosing a Realtor
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