Looking to invest? Do you have your team in place?
It's no secret that right now is a great time to buy. It's becoming even more evident to me by the amount of investors and would be investors that are contacting me on a daily basis. In fact, in the last two days I've had 21 investors call me or email me looking for deals on foreclosure properties. Investors are always difficult to deal with, but I don't mind working with them right now because there are so many good deals on the market. The good investors or experienced ones at least, have realistic expectations as to what type of deals they are going to get and make reasonable offers that have a chance of getting accepted by the seller.
On the other hand, I also get loads of calls from 'would-be investors' and those that have just come out of a seminar all pumped up and ready to make their mark in the real estate investment field. Usually these would be investors understand the concept of investing but never actually follow through. What they do follow through with is wasting an awefull lot of their own and other peoples time. Offers are low, offensive and more often than not NEVER stand a chance of getting accepted. My advice: go low, get a good deal but be realistic.
It really takes a certain type of person to get involved in real estate investing. You have to understand your own risk limitations and be ready to jump on something that you believe is a good deal. Jumping on a good deal comes from hours upon hours of studying the market, understanding market prices and having a sound strategy of what you will do once you actually OWN that great investment property. If you don't have a high risk threshold, my advice is to go back to your 9 to 5 or find another venture that you are more suited too. Investing is not for everyone.
The number one way to tell whether a person is a seasoned investor is by the team that accompanies them. Experienced investors don't leave anything to chance and have advisors, people and companies at their side - ready for when they need to jump on that next deal.
If you are just getting into the real estate investment field, I am happy to work with you. My only recommendation is that you get a sound team together so you can make educated decisions quickly when the right opportunity comes along.
Establish good relationships with quality people and companies. The following individuals must be on your team before you make your first investment:
A good real estate agent/broker with experience working with investment properties
A "CREATIVE" mortgage broker/lender - did I mention creative?
Home inspector - with rehab experience or solid building experience
Termite inspector
A Mentor - get a mentor that is a seasoned investor. One that will advise you without any emotional attachment to the property you are buying. If you have to pay them a small consulting fee - do it.
Title Company - Have your title company ready.
Insurance Agent - Get a good insurance company ready for your hazard insurance
Attorney - Get a good real estate attorney to protect you.
Contractors or Handymen - Have your team of plumbers, electricians, roofers, dry wallers, painters etc all together before you move forward.
Hard Money Lenders or Angel Investors - have these people ready for WHEN you need them. There may come a time they come in handy. Always establish good financial connections before you actually need them. Coming to them when you are desperate will not work in your advantage.
I would be happy to point you in the right direction for some of the above mentioned individuals, but ultimately you have to be happy with the team you have interviewed and selected.
Happy Investing,
Chantal