No matter what series I begin on my Radio Show, Mortgage Solutions, I always cover team building first. Qualified professionals can make you tens of thousands of dollars while the wrong team members can cost you even more.
First and foremost you will need money! Find a qualified, experienced Mortgage Broker and ask some questions. Ask what loan programs they offer, ask what their typical fees are, ask what their rates are with Lender Paid Compensation versus borrower paid compensation.
Next, you will need a Real Estat Agent. Always ask for referrals. We trade on our reputation in this business so you should be able to find a qualified agent that is eager to help you. Ask about their experience or resources available. If they lack experience but have immediate access to their broker you will be fine. If you are looking for investment property, be sure your agent understands and has experience with exactly what you are looking for. An experienced agent can be a great resource and should be able to answer questions about your market readily and inteligently.
A Real Estate Attorney is a must. Please dont’ go out and hire Uncle Bob’s divorce attorney because he did a great job for Uncle Bob! Real Estate practitioners bring a wealth of assistance to the transaction and won’t shy away from deals that involve creative financing. When you hire an attorney, interview them first to see if they are willing to answer your questions and help you understand the legal side of what you are proposing. A word of caution here; Attorneys get paid to help you avoid or mitigate risk. If you act on every thing your attorney and your accountant tells you, you may be on the sidelines for a long time. Risk equals reward. Understand the risk and find ways to mitigate it without staying out of the business all together.
Inspectors and Contractors are vital assets when considering any real estate venture. You may think you can inspect a building because you work in the trades, but most trades people haven’t been trained to look for the kinds of things that can cost you thousands. I have seen a licensed electrician buy a home where the walls were rotted four feet up from the bottom all the way around. He was a great guy, but didn’t really know the check list or signs of trouble like an experience inspector should. Aluminium wiring in another area that can cost thousand of dollars but the average person doesn’t identify on a walk through.
After your inspection, have your contractor go through the house and estimate what ever areas need fixing per the inspector and what ever areas you want improved. You may be shocked at today’s prices if you are handy your self as it costs a whole lot more to run a business correctly than it does to build a shed your self. Always use a professional estimate over your own guestimate when purchasing property. If your lender requires a qualified contractor you want to be sure it is in the budget!
Your team can make you or break you. This small team will keep you safe and help you stay excited about the real estate industry for years to come!
