As Andrew Carnegie said decades ago, “More money has been made in real estate than in all industrial investments combined.” Many of the world’s millionaires become rich through property investments but finding success in real estate is not just about buying and flipping houses.You may be surprised to find that many of the tips have less to do with properties and everything to do with how you run your investment business.
Partner with an Investor-Friendly Real Estate Agent
Unless you have your own real estate license, finding the right real estate agent is critical to ensuring you get the most for your money. Finding an investor-friendly real estate agent is not always easy but knowing what to look for is a start.
You may consider finding and negotiating your own deals, but it is much easier said than done. Many times, property investors operating without a real estate agent (or with the wrong agent!) are quickly beaten by other investors and agents when showing interest in a property.
Real estate agents only make money if they sell a property, so do not hesitate to get rid of the wrong fit – you will be doing everyone a favor. Find a real estate agent that has worked with investors in the past or has investment experience of their own. They should be familiar and ready to give advice on topics such as taxes and return on investment calculations.
Since time is of the essence for any investor, a real estate agent with determination and the ability to act quickly is a non-negotiable. Make your expectations known upfront to improve your chances at a long-term, successful partnership.
Build an Entourage of Repair Professionals
Whether you invest in rental property or flip homes, expect to coordinate and pay for your fair share of repairs. As you invest in more properties, however, you may become too busy to complete the work in a quality manner. You may also begin struggling to find the right repair professional for emergency situations.
To ensure your properties get the care and maintenance they deserve, take time to create a detailed list of routine and emergency repair professionals. Be intentional about building strong partnerships with these professionals, because it will quickly become a mutually beneficial relationship. They provide quality and timely repairs and maintenance, while you provide a steady stream of business and income.
Maintenance issues can quickly burn a hole in your pocket and lead to unhappy tenants and buyers. Keep track of maintenance requests in detail and put a process in place to quickly route those requests to a trusted list of repair professionals. It is always best to make contacts before you need them, so get started building your entourage of repair professionals sooner rather than later.
Hire a Property Management Team to Cover Day-to-Day Duties
Not every property owner needs a property manager, but the value of a property manager is priceless to the right investor. Ask yourself the following questions to determine if hiring a property manager is in the cards for you:
- Do I live close to my property?
- Do I own more than one property?
- Do I have experience managing property?
- Do I have the time to manage property?
- Can I afford to hire a property management team?
Hiring a property manager makes sense for most new investors, in particular if they are looking to generate a steady second income or large portfolio. Some management companies, such as Utopia Management, have excellent long term relationships with investors, and understand how to prioritize expenses with an eye to ROI. Utopia has taken several small investors to the next level by allowing them to focus on finding new properties; they even help you secure financing, advise on potential properties, and manage your accounting. Take time to look at your schedule, property needs, and budget to understand if hiring a property management team can take your investments to the next level. Similar to finding the right real estate agent, the right property manager can successfully manage the day-to-day operations of your property – leaving you more time to focus on growing and managing your real estate portfolio successfully.
Investing in real estate is one of the best strategies to guarantee long-term cashflow. Investment success does not just fall in your lap, so take advice from the property management experts to ensure your own real estate portfolio reaches – and maintains – success.