- Building a complete real estate investment network requires aligning your services with at least 10 other professionals.
- A real estate investor’s network is one of their most valuable assets in today’s competitive environment.
- Few things award investors with more of an advantage than a complete real estate network.
The success of your real estate investment network corresponds with the people you’ve made relationships with in the past.
It is nearly impossible to run a real estate business without the right contacts there to assist you in times of crisis, which is why the importance of networking cannot be overlooked. There are plenty of real estate professionals out there who detest every aspect that comes with networking, but that does not mean they avoid it.
While networking events make some individuals nervous and anxiety ridden, they are necessary for a business to flourish. It is okay to start small – or even use social media to your advantage – but you must put in the effort to expand your real estate investment network each and every day.
How To Have A Pro Real Estate Investor Network
Because real estate investing is all about who you know, you should spend just as much time strengthening your rolodex as you do perfecting your marketing techniques, finding the best business strategies, or polishing your website.
Proper networking can introduce you to contacts that elevate your business to an entirely new level; so don’t waste another second and start adding these professionals to your real estate investment network today:
- Mortgage Broker
- Real Estate Attorney
- Real Estate Agent
- Private Lender
- Title/Escrow Agent
- Insurance Agent
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Aligning your services with an experienced mortgage broker has the potential to save you a lot of time and money when it becomes time to secure financing. If for nothing else, there are almost countless ways to fund deals, but it’s the mortgage brokers job to find the best source of funding in the shortest period of time as possible. Not only are they familiar with the industry and many of the people working in it, but it’s not uncommon for a good mortgage broker to have access to lenders they have worked with in the past. Therefore, it’s safe to assume a savvy real estate investor could benefit from the relationships their brokers already has with other lenders.
Real Estate Attorney
Today’s best real estate investors already know it, and it’s about time you did, too: the single greatest thing a real estate investor can do is mitigate risk. Significantly reducing one’s exposure to risk has the potential to increase profits exponentially. Their knowledge of the law that has become synonymous with making deals is invaluable, and can help investors avoid making huge, costly mistakes. Remember, there’s a lot of fine print when purchasing and selling homes, so get an attorney that can help you understand it all.
Real Estate Agent
A truly great real estate agent is worth their weight in gold. While investors may be able to locate properties on their own, a good real estate agent will almost always be able to do it faster, more efficiently, and for less money. In fact, real estate investors are more like investments themselves; their services will cost money up front, but there’s a good chance working with a good one will actually save you money in the long run.
While everyone we will talk about here serves an important role, it’s the contractor/investor relationship that is perhaps the most important. Not only is the contractor the one that will be in charge of carrying out most rehabs, but they will set the budget for the project. That said, investors will need to find a contractor that they can not only trust, but one that can also get the job done on time and under budget. Of all of the people in your real estate investment network, the contractor is one of the most important, so be sure to vet them accordingly.
Maintaining organized “books” plays an important role in running a business. It is quite impossible to run a business properly, or even rehab a single house for that matter, without proper bookkeeping. The tax implications alone warrant the need for a qualified accountant or broker. Therefore, investors should consider upgrading from using a simple spreadsheet to actually adding an accountant to their real estate investment network. The presence of a broker could very easily save the company more money than it costs to retain them.
Working with a trustworthy appraiser awards real estate investors the confidence to move forward with each individual purchase. The resulting peace of mind, for that matter, makes working with a good appraiser well worthwhile. After all, you’ll need someone to give you an accurate valuation of the properties you intend to buy; why not make it someone in your own real estate network? What’s more, a good appraiser should be able to suggest the best and most efficient ways to increase a home’s value.
Not unlike adding a qualified appraiser to your real estate investor network, an inspector is more than capable of granting investors with an invaluable peace of mind. Whether buying or selling, a good inspector can facilitate a home sale each party is happy with.
Towards the top of every investor’s most important contacts list, private money lenders make just about everything possible. It is the funding, after all, that facilitates every single deal. Make no mistake, there is no deal without money, and there is typically no money for investors without a private lender. Get to know private money lenders in your area; not only can they fund deals, but their own contacts may be able to actually help you find more deals, too.
Title agents and escrow agents are the unsung heroes of many real estate transactions. At the very least, they can help investors avoid making some of the biggest mistakes possible. You see, it’s their job to uncover any potential issues with an asset’s title that may prevent a deal from going through. If the property has tax liens on it, for example, a title agent should be able to identify the issue and inform you whether or not the home is worth purchasing. That said, few things can serve as a bigger obstacle than tax liens, so make sure you know how to navigate them with a good escrow agent.
A single insurance agent should be more than enough to assist a real estate investor, and their services may end up simultaneously mitigating unnecessary risk and saving investors a lot of money. In fact, that should be the sole purpose of adding a good insurance agent to your real estate investment network: to save you money on ensuing policies.
A professional real estate investment network is only as good as the people it’s made up of. As a result, it’s safe to assume today’s best investors are those that have surrounded themselves with the best teams. Accumulating the top talent in any position should be able to elevate any investor’s career to the next level, and the people listed above are no exception. Therefore, if you want to realize your potential, it may be time to start adding the right people to your own network.
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