Many real estate investors—especially those who are new at it—try to do everything themselves. It’s an entrepreneurial, bootstrapping instinct, and it’s perfectly natural. Paying for support services can take a chunk out of your profits, and your short-term earnings and margins may be very thin at first. But there are some important relationships for real estate investors that make their lives much easier and boost their profits in the long run.
The fact is, the more your real estate endeavors take off, the more pressed for time you’ll be. Time becomes your most valuable resource. And these professional relationships will save you a lot of time and effort. And again, they’ll also grow your profits by decreasing costs over time and enhancing your revenue.
So, invest in the right professional relationships, too. And if you’re wondering where to start, here are the five of the most essential relationships for real estate investors.
Property Manager
You may not need a property manager at first, but at some point, if you rent out investment properties, you’ll benefit from one. Here are some questions to ask yourself when deciding if it’s time to hire a property manager. They take a percentage of your rental income, but also let you collect rent on auto-pilot. When it’s time, here are some pointers for choosing the right property manager.
General Contractor
If you rent out residential or commercial property or flip homes, you’ll need the services of a general contractor who can handle maintenance, repairs, renovations, upgrades, expansions, and more. A skilled, reliable, trustworthy, affordable general contractor is indispensable. Here are some tips for choosing a general contractor for your investment properties.
Real Estate Agent
Whenever you want to expand your real estate holdings, it means market research, property hunting, and other time-consuming due diligence. A locally knowledgeable real estate agent can take so much of this work of your plate. This is especially important if you’re involved in long-distance real estate investing in areas you’re not too familiar with.
Real Estate Attorney
With a growing real estate investment portfolio comes increasing need to fill out paperwork, file for permits, provide disclosures, complete inspections, comply with regulations, enter into contracts, deal with tenants, and more. It’s a lot to navigate. A real estate attorney makes life much easier and goes a long way toward protecting your investments and profits.
Accountant
Finding an accountant with extensive experience in real estate is one of the best ways to maximize your earnings. They can advise you in a variety of areas, even beyond your taxes. And they’ll help minimize your tax burden every year while recommending ways to boost your revenue, as well as keep you compliant with a wide range of laws and regulations.
