Why is It Important to Build a Strong Real Estate Team Before Investing in Rental Properties? | Sacramento Property Management Expertise

Surrounding yourself with professional experts is the best way to ensure you have a successful investment experience as a real estate investor. Before you invest in rental properties, build a strong real estate team that can provide the support, answers, and resources you need. 

In our experience, there are several professionals you need to have available when you own rental properties. Put together a team of people who have extensive experience dealing with investors in your local market.

How a Real Estate Agent Can Help

While it’s easy enough to go online and find plenty of listings and available properties, working with a real estate agent will set you up for success. Your agent will help you identify opportunities and negotiate the best terms. There’s no upfront cost to you, either. Typically, your agent’s commission will come from the seller. 

Work with a real estate agent that has experience with investors. You also want someone who is well-connected within the local real estate and investment community. 

Lenders are Required for Real Estate Investing 

Your mortgage professional is another important member of your real estate investing team. Building relationships with conventional and private money lenders is a good way to diversify how you pay for investment properties. You might want to develop a relationship with a small community bank or use the credit union you currently work with for your personal funds. There are also benefits to large national banks. 

There are a lot of different ways to fund your rental property purchase. Gather all the information you can from all the professionals you can, and start building relationships with lenders who will help you not only with your first purchase, but all the investments you plan to make down the road. 

Legal and Financial Support 

It will help to have an accountant, a bookkeeper, or both. This will help you stay organized financially, with an accurate and detailed record of incoming rents and outgoing expenses. As you start generating more wealth and have more properties to account for, you’ll need a good accounting platform and software that allows you to document and report on your earnings at tax time. A professional accountant can help prepare your personal and business tax returns, and can offer you solid advice and tax recommendations as they apply to your investments.

A lawyer is going to be necessary as well. You’ll need someone to review your lease agreements and other real estate documents. You may find yourself needing to evict a tenant, defend yourself in court, or dispute a claim or lawsuit. Having a relationship in place with an experienced real estate attorney will provide peace of mind and instant expertise. 

Sacramento Property Management Partners

Most importantly, you’ll need a professional Sacramento property manager who can help you lease, manage, and maintain your rental properties. A property manager can help you before you even buy a property by explaining the amount of rent you can expect to receive and outlining any repairs or updates that will be necessary on a home before it’s ready for the rental market. You’ll also have access to vendors and contractors who will respond to any work that needs to be done before, during, and after a tenancy.