Buying an Investment Property should be very simple and it can be if you find the right team to help you succeed. Investing in Real Estate should be looked at like a successful company or a sporting team. Individuals may be successful on their own but if you put a team in place the ROI (Return on Investment) can sky rocket and the amount of work and effort should be minimized.

Owning an Investment property should not have to consume all your spare time. An investment property team approach will help you meet your goals and provide you with enough residual income to meet your retirement goals
Here is a list of 5 important individuals who you should get working on your team.

1.Real Estate Sales Representative

There are many factors when purchasing an Investment Property besides just the Property. The number one team member you should be looking for is an experienced Real Estate Sales Representative.

This individual should not be just a licensed realtor, in order to be successful they should specialize in Investment Properties and own these type of properties themselves.To use a sport analogy, if you are teaching your child to shoot a puck and play hockey; do you want a teacher who has never played the sport but loves to watch the game or do you want a professional whom is still practicing today.

The same approach should be applied when picking out a Real Estate Sales Representative. This person should know the different types of rentals units that exist; the benefits of a townhouse versus a house with a secondary suite as well as what to look for in a student rental.Each of these types of investment properties have different and unique aspects and to purchase a good investment property the sales representative should know how to differentiate your needs not just sell houses.
If the sales representative has never owned a Student Rental how can they tell you what a good property should look like. At the same time an established Real Estate Sales Representative may be able to find you places that do not hit the open market. BONUS!

2.Mortgage Broker

The next most important team member is a good Mortgage Broker. At the end of the day they understand all the rules and regulations regarding how to obtain the financing you need for the Investment Property. Mortgage Brokers have established relationships with Banks and other lenders who can help finance the property you are going to purchase. Once you start purchasing Investment Properties you will realize that a good Mortgage Broker will know your file and be able to advise you on how to obtain a mortgage.

Are you self employed? This may cause a problem but a Mortgage Broker knows the in’s and out’s and can be able to match you a lender who will approve your mortgage in spite of self employment.  Bonus – a Real Estate Sales Representative who specializes in Investment Properties will have good Mortgage Brokers to introduce you to. If they do not, this should be a red flag.

3.Property Manager

The third team member who is going to play a crucial role in your success in Real Estate is an established Property Manager. Most individuals feel they can manage their own portfolio without the additional cost. When you hear yourself saying I can manage my own property; a good question to ask yourself is what is your time worth as well as are you prepared to visit your investment property on Friday Night if a hot water tank burst.

A Good Property Manager also helps keep the relationship between you and your tenants healthy. When the tenants want something small done and an owner says no; it may make the tenants feel disrespected which can lead to them not taking care of your house. A Property Manager can ensure that all small requests that are not valid are explain properly and if the tenants do not feel they are getting the respect they deserve from the Property Manager you can always step in and be the hero. That is a huge WIN/WIN.

Ensure you have a good property manager who looks after your needs as well as looks after your tenants, the tenants can make or break your Real Estate Investment experience. Good tenants make owning Real Estate a treat.

4. Accountant

The fourth team member you should get on your team is an account that understands Real Estate Investing. Not every accountant understand the complexity that goes into your returns, how expenses should be broken up; i.e. wear and tear that can be expensed in the fiscal year versus a major renovation such as a kitchen or roof that may need to be depreciated over 5 years. A good accountant can save you money, find you refunds that you did not know exist and better yet help make sure you do not get audited.

5. Tenants

The fifth team member are the tenants who rent your income property.  A savvy Real Estate Investor will welcome their tenants to a new lease with a small present.

Each Holiday provide your tenants a small token as a thank you for keeping your investment property in great shape and paying your rent on time.  A small token can make them feel appreciated and stay in your house longer than they expected because they like you as a landlord. This means you will be paying your team less as their will be no new lease fees, less complaints over small minor non issues and better yet they may actually fix things in your property that will help your appreciation grow.

When you own an Investment property think of the fees to your team as costs you would incur if you owned your own business You are paying the Real Estate Sales Representative to find you the good property; Mortgage Broker to get you the financing for your investment property; Property Manager to manage your investment property and an accountant to manage your money. Make sure to choose wisely and start earning cash flow today.