Building Your Power Team: Part 3

Now that you understand the components of your U.S. real estate Power Team, it’s important to know when to use each person. Depending on the size and scale of your operation, you may not need all of the elements for every step of the way. If you have experience with investing in U.S. real estate and you are doing a standard contract for a residential transaction, lawyers may not be necessary. On the other hand, signing partnership contracts will probably require some advice directly from a law expert.

Do I need a full team for every transaction?

The team will evolve based on the nature of the transaction, just as the contracts and process evolves with it. There are so many variances between purchasing an apartment, condo, or single family home. At the start of your U.S. real estate investment journey, it’s best to have all the components on your team, even if it is just in a consulting capacity.

Ask the right questions

The next step is getting the right people in those key positions we have discussed over the past week. Asking the right questions and actually listening to the responses you get will make a big difference in your U.S. real estate endeavors. The first thing you look at for all team members is their past work. This will require you to decide the type of investments you are looking to make, and picking individuals with complimentary experience. Just like any kind of job, you want to check the credibility of your team members before you give them power.

A property manager should have a solid understanding of the local market you are investing in. Ask them to outline their experience, their regular fee schedule, a sample of monthly statements and the type of marketing they employ to attract tenants.

When selecting a contractor, you should ask them for a sample bid and contract from their previous experience and get referrals from previous clients.  Figure out if they outsource or do the work themselves, and what their typical overhead is. He should be able to get creative with projects, so they can handle anything you throw at him. When selecting an inspector, check their referrals and what associations they are a part of.

You relationship with your Realtor is key, because it can make a difference between how much time and how quickly they are willing to make a deal for you. Make sure they have a reputation to close so you can snag the best deals. Remember they are not your coach, so don’t overload them with questions about the process. The more low-maintenance you are as a client, the better your relationship with them will be. With your title agent, foster a relationship built on communication so they know who you are when you are sending them important documents.

Choose your lawyer and accountants based on the fields they work in. If they have experience in real estate law and taxes, that should be enough for you to bring them on-board.

Know your stuff

We hoped you enjoyed this 3 part series on building your power team. If you have any questions feel free to leave your comments below or contact us directly. Also make sure to follow us on Twitter and Facebook for daily tips and news on U.S. real estate investing.

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