best type of advisor to walk me through my first investment?

Question

Hi, I'm educating myself, and working up to my first purchase (house hack). Once I have a real estate strategy in place, and am ready to dive in, who should I call on to help walk me through timely, nitty-girtty questions that come up in the process? And to help me avoid pitfalls? As in, am I choosing a property that will cash flow? Did I in fact choose a good area? Should I sign this form? What checks do I need to have in place that I might not even know about? What on earth is xx unexpected thing?

Should I trust the real estate agent as a guide? The attorney? An experienced investor I hire 1:1? I want to know this person truly has my best interests at heart.

Suzanne Reilley · Answer

@Nathan Gesner perfect, thank you.

Eliott Elias · Answer

Your realtor should help guide you

Nathan Gesner · Answer

You learn how to crunch the numbers yourself: Here's a guide that describes what good cash flow looks like and how to analyze a property.https://www.biggerpockets.com/...

You find a good agent that knows the market and has a lot of experience. The buyer's agent will help cross-check and evaluate the property/market without being emotionally tied. They can (hopefully) put you in touch with a property manager (if one is wanted) that understands the rental market and can tell you how the home would perform as a rental. A buyer's agent is also skilled in negotiation, setting up inspections, and other skills necessary. And their fee is paid by the Seller, so there's no reason why you wouldn't use one!

John Mathew · Answer

Hello Suzanne! I’ve listed five essential people you should seek advice from before making a property investment, hope this helps you. :)

Financial Advisor

Your financial advisor is the first person you should go to if you’re in the early stages of a possible property investment. Before you start looking for properties, it’s important to know if you can afford it or not, given your financial status.

Building Inspector

Once you and your buyer’s agent have found a suitable property for your needs, it’s wise to check it out during an open house, with a building inspector by your side.

Mortgage Broker

Before you start checking out properties, it is wise to get real estate advice from a lender or mortgage broker and see if you can get pre-approved for a property investment loan. Alternatively, you can see a broker first before applying for a pre-approval if you’re not sure you’re financially ready to invest.

Buyer’s Agent

Finding and buying properties can be complex and stressful—which is why asking a buyer agent for real estate investment advice can make all the difference.

Lawyer

Getting real estate investment from a lawyer can help you maximize your profits and minimize your risks.

Suzanne Reilley · Answer

@Brennen Thompson thank you so much for sharing this wisdom! I appreciate this intel on key elements to prepare, ..so I can streamline the process, and hopefully *reduce those inevitable mistakes.

Suzanne Reilley · Answer

@John Mathew thank you for this clear, thorough, and very helpful answer. I didn't know about buyers agents! And this is exactly the type of thing I was looking for.

Brennen Thompson · Answer

Hi!

I had many of the same concerns before I purchased my first property. A few things that helped me get over my fears: 1. An agent that I trusted - Think of it like finding a good partner. Are they going the extra mile for you? Are they answering your questions quickly and thoughtfully? If so, you've probably got someone worth bringing home to mom and dad

2. Checking off all of my boxes - What are market rents? What is my monthly payment going to look like? What utilities am I going to have to pay? How much is insurance going to cost? Doing all this work prior to closing is exhausting, but it'll help you sleep peacefully at night 3. Bank's won't lend if you can't afford it - When you get a pre-approval, a bank won't take a risk on someone that can't pay their mortgage every month. If you got approved, purchase a property, and all hell breaks loose, you should be able to make the payments until you can figure out next stepsThe biggest thing to remember is that you're going to make mistakes, it's inevitable. You don't know what you don't know and the only way to learn is by getting started!

best type of advisor to walk me through my first investment?

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