Real estate is a profitable business venture and can be very lucrative. In fact, according to the National Association of Realtors, real estate has averaged a 10.2% return on investment over the past sixty years. Furthermore, real estate is a stable investment; while stock prices may fluctuate, real estate values have historically increased over time. This makes real estate a sound investment for both short-term and long-term financial security.
However, venturing into real estate alone can be challenging. There will be plenty of paperwork and legalities to handle in addition to the existing property search and negotiation. This is why it is crucial to have a team of people to help you with your real estate investment. Here are a few you will need in your real estate investing team.
Real Estate Agent
The first person you need on your team is a real estate agent. A reliable agent will know the area you are looking to invest in and can help you find properties that fit your investment criteria. They will also be able to assist with the negotiation process and help you get the best price possible. Furthermore, a good agent will have a network of other professionals (such as home inspectors, loan officers, etc.) that they can refer you to.
Having a real estate agent will save you a lot of time and effort in your property search, and they will be invaluable assets during the negotiation process. According to the Bureau of Labor Statistics, the average wage for a real estate agent is $61,730 per year.
Home Inspector
The following person you need on your team is a home inspector. A home inspector will thoroughly inspect the property you are interested in purchasing and identify any potential problems. This is important because it will give you an accurate assessment of the property’s condition and allow you to make an informed decision about whether or not to proceed with the purchase.
It would help if you used a professional home inspector rather than attempting to do this yourself. Home inspectors get trained to look for things the average person would not think to look for, and they have the necessary tools (such as thermal cameras) to conduct a thorough inspection. The average cost of a home inspection is between $200 and $500.
Loan Officer
It would help if you worked with a loan officer to finance your real estate purchase. A loan officer can help you secure the best financing options for your situation and guide you throughout the loan process. Furthermore, a good loan officer will have a network of other professionals (such as real estate agents, home inspectors, etc.) that they can refer you to.
You do not have to pay a loan officer for their services; the lender typically pays them. The average salary for a loan officer is $64,660 per year.
Reliable Contractors
If you plan on fixing up and flipping the property or renting it out, you will need a team of reliable contractors to help with the repairs and renovations. A good contractor can do quality work at a reasonable price. Furthermore, a good contractor will have a network of other professionals (such as electricians, plumbers, etc.) that they can refer you to.
It would be best to get estimates from multiple contractors before selecting one. The average cost of hiring a general contractor is $30,000.
However, you might need to have them available 24/7, which will require you to pay them more. Still, finding a team who will always be on-call can be challenging. Fortunately, you can hire construction recruitment experts to help you find the right contractors for your team.
Tax Advisor
Lastly, you will need a tax advisor on your team. A tax advisor can help you minimize your tax liability and maximize your deductions. This is important because it can save you significant money in the long run. The average salary for a tax advisor is $64,660 per year. You can find a tax advisor online or ask for recommendations from other professionals in your network.
One of the qualities you should look for in a tax advisor is experience. An experienced tax advisor will be familiar with the tax laws and know how to maximize your deductions. Another quality you should look for is integrity. You want to make sure your tax advisor is honest and trustworthy.
Final Thoughts
Regarding real estate investing, you must surround yourself with a team of professionals who can help you succeed. A real estate agent, home inspector, loan officer, reliable contractor, and tax advisor are all people you need on your team. These professionals will save you time and money in the long run and help you avoid costly mistakes. So don’t go it alone – build a team of experts to help you achieve your goals!