What You Need to Know If You’re Serious About Real Estate Investing

As a real estate investor, you can wear multiple hats at all times. You can act as a contractor during the renovation, a house inspector during off-market property walkthroughs, or a property manager when you’re all ready to start renting your units. We all start out as jacks of many trades - when you’re a beginner and you’re still low on funds, you have no other option but to do all the work yourself. However, it won’t always be that way.

The Secret to Successful Real Estate Investing 

The one thing you need to know if you’re serious about making it in real estate is that you won’t be able to do it alone. If you’re the kind of person who likes to have control over every aspect of each venture, you will have to learn how to let go and let others manage some of the tasks. Now, I’m not telling you that you’ll have to completely hand over your business to someone else. What you will have to do is put together the right group of people to help you take your business in the right direction.

So, you have a decision to make when you want to invest your money into income properties - which hats are you going to wear, and which ones are you going to outsource? As a rule of thumb, the most successful real estate investors are never the ones to swing a hammer. Similar to how Jeff Bezos isn’t the one delivering your Amazon packages to your door. As the E-myth states, “Pretend that you are going to franchise your business, work on the business, not in the business.” 

Now you may be asking yourself which roles in your business do you need to outsource? A few crucial roles that you will need on your Power Team include a lawyer, a realtor, a mortgage broker, and an accountant. However, those are just the main four. If you want to build the real dream-team, you will also need a property manager, contractors and a tradesman, a house inspector, an appraiser, and a bookkeeper as well. 

When selecting these key members of your real estate investing power team, it is best to find individuals that specialize in real estate, or ideally invest in real estate personally. I would also suggest you to always look for individuals rather than companies, especially when seeking contractors. Reliable individuals and independent contractors are going to do a much better job at servicing your business than any major company.

The simple reason behind this is that companies are usually spread thin across multiple projects and clients’ needs. They are less likely to form a real connection with you and build a partnership that will benefit you equally. Besides, when working with companies, you can expect overhead and other additional expenses, whereas working with independent contractors tends to be a lot simpler. You can find individuals and independent contractors on Kijiji or even if you dive a bit deeper into the second page on Google,. Another great option is to ask around and use your network to look for potential connections. Whatever you do, just stay away from the top five large companies in the area.