• A good real estate agent can be essential in finding the right property and understanding market trends.
• Contractors/builders are useful for any renovations that need to take place before putting a property on the market/renting it out.
• Loan officers understand different types of mortgage loans available and can help secure financing for a purchase.
• Accountants and tax attorneys are necessary to keep track of taxes associated with owning multiple properties.
• Property managers help manage rental properties, from tenant screening to collecting rent payments.
Are you looking to become a real estate investor? Then you’ll need to build a team of experienced and knowledgeable professionals in the industry. From realtors and loan officers to contractors and accountants, these people will be your partners in success as you embark on your real estate investing journey:
Real Estate Agent
A great real estate agent can be the key to finding a property that fits your budget. A good agent will understand your needs and help you find the perfect property for your investment goals. They may also advise on market trends and potential rental rates for the area you’re interested in. A real estate agent is essential because they have access to properties that aren’t listed publicly yet, so it is crucial to contact one as soon as possible.
Builder/Contractor
Most likely, if you’re investing in real estate, you’ll need to make some improvements or repairs before putting the property on the market or renting it out. That’s where having a reliable builder or contractor comes in handy – they can help with renovations such as bathroom remodeling, kitchen updates, flooring replacement, painting, and more. It is essential to find someone who knows what they’re doing so that any projects turn out well and don’t cost too much money.
Loan Officer
In order for most people to purchase an investment property, they will need some form of financing from a bank or other lender. This means working with a loan officer who can help navigate through the process of obtaining pre-approval for a loan and helping secure financing for purchasing your first investment property. Loan officers are experts at understanding the different types of mortgage loans available and determining which one best fits your needs and budget, so it is essential to consult with one before attempting to make an offer on any property.
Accountant/Tax Attorney
Investing in real estate can be complex as many taxes are associated with owning multiple properties, depending on where you live. There are various taxes you’ll need to deal with, including these:
Income tax
You need to familiarize yourself with deductibles like home office expenses, as well as the deadlines for filing taxes specific to real estate or rental property owners.
Capital gains tax
Sometimes, you may need to pay capital gains tax when selling a property. It is essential to know the rules and regulations surrounding these taxes as they can be very complex and vary from state to state.
Property tax
Property taxes are also something you’ll need to consider as an investor. Different states have different rules and regulations on how property taxes are assessed.
Depreciation tax
You’ll want to be aware of the depreciation tax as it can help reduce your overall tax burden. An accountant or tax attorney can explain these deductions in more detail and help ensure that you are taking full advantage of all available deductions.
An accountant or tax attorney can help advise on how best to structure your business, so you don’t get bogged down by all these tax issues. They can also provide advice on deductions related to income from rentals as well as expenses associated with owning multiple properties, such as insurance costs or mortgage interest payments.
Property Manager
Once your rental business has taken off, managing it all yourself might become overwhelming, if not impossible, without assistance from others. This is where hiring a property manager comes into play. Property managers handle everything from the tenant screening process all the way up through collecting rent payments and dealing with maintenance issues like plumbing problems or other necessary repairs around rental properties – leaving more time for investors like yourself to focus on building their portfolio instead of running operations day-to-day.
Investing in real estate isn’t something that should be done without research and preparation – but if done properly, it can be incredibly rewarding. Building relationships with experienced professionals such as lawyers, builders, loan officers, accountants/tax attorneys, and property managers ensures that everything runs smoothly while saving time and money – making them invaluable partners in acquiring your first real estate investment! With their expertise guiding every step of this process – becoming an investor today could mean achieving financial freedom tomorrow.
