Does Your Team Have the Right Players?

I think I’ve discussed my thoughts on solo investing on here before, but just in case I haven’t, I’ll share them again. I don’t like it. Plain and simple. Trying to be a one-man (or woman) show in property investing is just crazy. No one person can handle every aspect of investing, from property scouting and buying to contracting to management, all by themselves. Not only is there not enough time in the day, most people don’t have the required knowledge in each of these areas. And most importantly, it just doesn’t make financial sense.

It’s much smarter to be a team player. When you work with a team, you’re delegating specific tasks to people who know exactly what they’re doing, which will ultimately save you time and money. But who should be on that team?

Here are the folks who make up a solid investment team, and who you definitely want to have on your side:

1. Real estate agent - Not everyone is going to agree with me on this, but I feel that agents and investors are much better when working together. This is especially true for new investors who are just starting to build their networks. An experienced agent can provide valuable insight, and they also have access to much more information (i.e., properties both on and off the market) than unlicensed investors who are working solo.
2. Finance/lender - Investment properties require capital, and oftentimes lots of it. When handling sizeable sums of money, it’s a good idea to have a finance expert on your side. Even if you’re purchasing property all-cash, keeping a trustworthy lender in your list of contacts is a good idea. You never know when you’ll need to call on them for additional funds, or even just advice.
3. Accountant - You’ll also want a good CPA on hand to handle your taxes and other financial matters. Real estate taxes can be complicated, and navigating complex tax laws to comply with the IRS really does call for a professional.
4. Attorney - For the same reasons you want a CPA, you’ll want an experienced attorney. You may need one who specializes in real estate, or maybe corporate or tax matters. Or if you’re lucky, you’ll find a great one with knowledge in all of these areas! Regardless, having a knowledgeable attorney who can offer advice and provide legal services is crucial, so lawyer up!
5. Property management - Here’s a biggie. Managing a rental property is a lot more work than most people realize. From the moment you take possession, that piece of real estate is your responsibility. You have to keep it maintained, fix any issues that arise, and be available to deal with any problems your tenants have. There’s also the matter of collecting rent, marketing the property if it goes vacant, and finding tenants to fill any vacancy. This can easily turn into a full time job, which most investors simply don’t have time for. This is where a property management group comes in. The group will handle all of these things, and they have the necessary skills and experience to get the job done right.

One of the biggest advantages of allying yourself with a team is in the time savings you’ll realize. When you delegate tasks, you’re giving yourself all that time to focus on what you’re best at. You’ll also gain access to each person’s network of professionals, which will only benefit you. Lastly, working with a team can save you serious money. Investors who fly solo often think they are maximizing their profits because they don’t have to share the wealth, but when you factor in all the time and extra work that comes with solo investing, it just doesn’t add up.