Who do I need on my "team" for my first investment?

Question

I am moving towards my first real estate investment (House Hack). Up until now, I have been in the process of educating myself to the best of my ability. I am currently in the process of solidifying my financial plans (securing a loan) and looking into getting a real estate agent. I know after having multiple investment properties, it could be more beneficial to have property managers, CPA, bookkeepers, etc. However, I like the idea of starting with a minimal team, so that I can better learn the ropes myself. Then I can hand off these responsibilities to other team members, as I expand my operation. With that in mind, who should I consider "essential" (I use this word loosely) to my team for the FIRST investment? Also, at what point would it be beneficial to start introducing CPA, bookkeepers, etc. to my team?

Michael Magno · Answer

Evan-

Always start with the Realtor or Lender.  The rest of the domino's will fall into place.  If you're looking to house hack in the Akron area, feel free to drop a line to me and my team.  Best of luck in your search.

Drew Sygit · Answer

@Evan Rumble

While building your team, it's important you understand the motivations of everyone on your team.

Sourcing: whether agent, wholesaler, flipper, etc. many only have a vested interest in a transaction. You want to find ones that are vested in developing a long-term business relationship with you. Otherwise, they will screw you for their own compensation.

Property Management Company (PMC): No one else on your team should be as vested in a long-term relationship with you as a PMC. They will have to manage whatever you buy on a daily basis until you sell the property or terminate them. You need to find a good one though, that is honest & competent. An honest PMC's incompetency will still cost you.

Inspector: You want an unbiased and competent professional that will properly do their job and document it.

Contractor: Finding contractors that don't cut corners and overcharge is EXTREMELY difficult. Even if they are referred, you really don't know until AFTER they've done a job. The other 3 above should be able to provide referrals, but don't blindly trust anyone!

Max Emory · Answer

@Muhammad Amawi, huge fan of having team members who also invest in real estate! Everyone speaks the same language and "gets it" on a higher level.

__________________________

Real Estate Investor | Bookkeeper & CFO | USMC Veteran

Muhammad Amawi · Answer

Hey Evan,

If the idea is to start with a more minimal team, I would recommend working with a team of people that also invest themselves. Within that team I would include the following:

- Mortgage Loan Officers: Making sure you are choosing licensed professionals is a key here opposed to using someone at a bank who does not have to be licensed. Mortgage Brokers are typically the better option compared to a direct lender as well, as they are doing the shopping for you by comparing options across multiple lenders.

- Real estate agents: Going to reiterate here that using an agent that also makes real estate investments themselves is important. You wouldn't want someone showing you around the market that isn't actually involved with their own money themselves.

- Property management: This may not be needed yet for yourself if you're still trying to better learn the ropes.

- Contractors: Having a few go to electricians, plumbers, construction, and hvac amongst other things will be very beneficial in the long run.

Having CPA, bookkeepers etc.. lined up will be very beneficial. As you start to feel the workload is becoming too much, that would be a good time to start introducing them to your team.

Mordy Chaimovitz · Answer

In addition to all the above....

If you are planning on investing out of state you should have a property management company you are comfortable with already in place before you start looking at properties. They can help you determine which areas you should be looking into. In addition you don't want to buy a property and then have a hard time finding someone to manage it once you own it.

Luis Olivier · Answer

Along with the types of professionals that have been listed, if you are planning to house hack, you might want to consider speaking to a CPA that knows about real estate. There are different tax implications when renting rooms out in your house (deducting a portion of expenses because it is also your primary residence). Wouldn't hurt to know that information come tax season.

Bruce Woodruff · Answer

1) Realtor to find you a place 2) Lender to get you the best loan 3) Contractor to fix it up.

You can take it from there.....

Chris Varsek · Answer

IMHO - interview tradespeople, lenders, and realtors.  Those would, without a doubt, be the first people on my team.   The lender helps get your finances in order, the realtors can walk you through areas to invest in, and the tradespeople need to know the permit laws in those areas.

Amy Greenwood · Answer

@Evan Rumble , This is all great advice here! I'm glad you are thinking ahead! As you dive into this, you will meet people who align with your values and goals, but you might not be ready to work with them yet. Just continue to nurture that relationship. Ask them questions and try to add value to them as well (mutual relationship).

Best wishes on your first investment property! BTW I'm in Mentor, OH. Good to talk to a "neighbor"!

Max Emory · Answer

@Evan Rumble, echoing what these other fine gentlemen have said.

1. Realtor/Broker (deal finder and may have great recommendations for the other team members)

2. Lender(s) (may need multiple depending on your strategy)

3. Property Manager (if not self-managing)

4. General Contractor (unless you plan to act as the GC/project manager)

5. CPA (real estate investing-savvy)

6. There are other invaluable team members to secure once you begin to scale that will help you scale. (Bookkeeper, fractional CFO, virtual assistant for different tasks, etc etc)

I hope this helps! Best of luck to you!

__________________________Real Estate Investor | Bookkeeper & CFO | USMC Veteran

Who do I need on my "team" for my first investment?

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