When you are first starting out in a real estate business, you need as much support as possible. This support includes your repair staff, the attorney, and accountant you are using, and even the space in which you work. While this may seem like common sense, many people avoid and overlook the most basic support systems in favor of saving money.
One of the first things you need for any business is an office, or at the least a desk. Many people have suggested over time a closet; I personally do not like the closet idea since it tends to be so small as well as dark. To be an effective office, most people need good lighting as well as a positive atmosphere.
If you are using a space for an office that you are unhappy with, you will tend to avoid it like the plague. You must make sure your office has a few touches in it that you enjoy looking at so that you will not make any excuse possible to leave and avoid working. Your desk is the same thing, if you are not happy with it, you will avoid it like the plague as well.
Your organizer is another piece of important support equipment. This will become your scheduler, address book, and note pad all at once. It will help you organize that vital information in which you need to access quickly to make informed decisions. Your planner needs to have plenty of writing space so that you can make notes on all of the properties that you scout. Regardless of your purchasing decision, you need to keep the notes on the property for future reference.
A phone is a very much necessary item to have in any business. Real estate is no exception. Remember the real estate agent I talked about before. If you have developed that crucial relationship then you need a phone so that they can quickly get in touch with you in the event that a great piece of property appears on the market. Being able to get in touch quickly means an increased chance at nabbing wonderful pieces of property.
Computers are now also a great piece of support. Having software that will help keep you organized is also necessary. From a word processor to write contracts, to a spreadsheet software to keep a spreadsheet of your properties and their expenses computers can do so much. Software is available that will help you manage your cash flow for each property, as well as all of your properties overall. Never scrimp on a computer, with today’s changing technology buy the best computer you can afford so that you are not out of date immediately upon purchase.
Internet access is also very important. Being able to access the internet from your home and office will enable you to do some much needed research into property values, scout some properties without leaving your home, and even search for repair staff. With internet access, you will likely receive the next important item- e-mail. E-mail is something that is a great time saver to so many, and having it will speed up your response time and enable you to work more efficiently.
If you are choosing to do rental with your property then you are going to want to decide if you want to use the services of a property management company. They will save you loads of time; however also eat into your profits. If you so choose to use a management company, you need to shop around for one, in which you feel completely comfortable and confident in their ability. Ask about their rates, hours of operation, how quickly they arrange for repairs when necessary, and how they screen potential tenants.
Title Insurance is another important investment for the real estate investor. Consider that you will be doing a lot of business with the person; you need someone you enjoy working with, who is honest and willing to work with you to always insure the title of any property you bring. The better the relationship with the person, the more likely you are to have smooth transactions.
An appraiser is also an important person to work with, they can assist greatly in the appraisals of property you are interested in purchasing. While most sellers have had their property appraised, you never know how honest and trust-worthy their appraiser is. Having someone you, trust is important so that you know for sure how much the property is potentially worth.
A banker is also an important contact; this is the person who you will be working with quite often when mortgages and other financial needs appear. You need someone who works at a good reputable bank that treats you with respect. You will want to avoid banks that are rigid, and unwilling to develop a good working relationship with you and value your business.
To make sure your potential property is safe, and see exactly what needs to be potentially fixed with the property, you need to find a property inspector. You need someone who is honest, good, and skilled. You do not want someone who you have to follow around constantly because you do not trust them. You want someone who is able to put you at ease. A good property inspector can help you make very informed decisions about all of the property you are considering buying. Some houses are hiding very major problems underneath the foundation that the average person is not able to notice.
While we are discussing important people, let us not forget one of the biggest key players. An insurance agent. You need someone who does not mind handling multiple properties, with various types of policies depending upon the exact needs of the property.
We have now covered the basics from who is important to helping you succeed, what essential equipment and supplies you need, as well as important credit matters. We are now going to proceed along in the next installment with much more information in Installment 6 we will cover how to find what investors describe as flexible sellers, what that means and how they can be very beneficial to the starting investor.
