The Importance of Having A Team

The most valuable adage I've learned starting my investing journey and working with other investors has been 'your network equals your net worth'. Growing your network can be challenging though, especially when you're first starting your investment journey. Navigating your way through networking events and message boards can be especially daunting while you're discerning who is knowledgeable and who is looking to take advantage of a newbie investor.

Below, I've identified and described the key roles you'll want to 'fill' before you make your first multifamily investment based on my own experience and experience working with successful investors.

Mentor: Every new real estate investor NEEDS a mentor. A mentor is not someone who you pay to ask questions to - but a trusted resource who has walked the path that you're about to begin. I find the best mentors to be individuals who not only can steer you to effective best practices based on their own experiences, but also show you how to think about the unforeseen problems that you're sure to encounter - and help provide you advice and a framework for solving them.

Property Manager: Not everyone decides to use professional property management (I argue that everyone should) - BUT - even if you decide to manage your own property as a new investor get to know someone who is involved with management. There are lots of intricacies to property management, and developing a relationship to utilize when you have a quick question will save you time, and money, moving forward.

Loan Officer: The more advanced you get as investor, the more important a loan officer will become. Acquisitions can get difficult, and having a loan officer who understands the lending environment and can help get your deals done will pay huge dividends. I've worked directly with banks and with loan brokers and prefer working with brokers. Brokers have access to multiple platforms which helps if you run into difficulties with your loan. Going directly to a bank can prove challenging - often they have much less flexibility with their underwriting requirements.

Agent: Get to know an agent who is familiar with real estate investing in the area you're looking to invest in! Check to see the number of transactions they've done in your area and ask for referrals if you have questions. As an agent I can say that loyalty reaps dividends for investors. My best clients get shopped all of my off market deals first, and I make sure to turn them on to anything good that pops up on the market.

Handyman: Besides your mentor, I would say this is the second most important person on your team. Stuff has a way of breaking - especially in investment properties - having a good handyman (or woman) is critical, especially if you're not handy yourself. Calling in a contractor every time you need something done gets expensive very quickly. Save the contractors for major plumbing, electric, foundation and roof work - otherwise make sure you have a handyman on speed dial for everything else.

Finally - take the time and develop these relationships in person. Go to a Meetup event, ask for referrals...just get out there and TAKE ACTION IN PERSON! Taking the action to get out and meet someone is a great first step for anybody interested in getting into investing.

Happy Investing!

John Alden

www.johnaldeninvestments.com