Everyone can be a Real Estate Investor
The majority of us from time and time again will hear that the best way to financial stability or even wealth is through real estate investments. You will hear such statement, “You have to be a real estate investor, that’s where the money is at!” Growing up, this is the kind of statement I always heard, so it’s not a surprise real estate has always attracted me. Despite how distant the career choices I’ve made from real estate, I would always find myself gravitating towards it.
Mortgage and Real Estate
So, I figured the best way to learn real estate is to learn it from two perspectives. One is through a mortgage, and the other is through real estate profession. Mortgage for me was the most fundamental in learning what it takes to acquire real estate. Unless you’re rich and money is not a problem, more than likely you will need a mortgage to buy real estate. In 2002, I got a job as a loan officer and within a year I was already promoted to a supervisor, training new loan officers. When I felt that I’ve learned all I can from the mortgage industry, I switched over to real estate. I got my real estate license in 2005. The real estate profession, I believe, was the ultimate key to learning about real estate investment. It gave me access to the knowledge available only to real estate professionals. Equipped with the knowledge of mortgage and the real estate profession, I now have the keys to aggressively compete and find the right real estate investments.
Extensive Knowledge in Real Estate is Not Required
In hindsight, after a few years of helping my clients and myself personally over the years when it comes to real estate investment, the saying that “Real estate is not for everyone” is completely false. Anyone can be a real estate investor! It’s just a matter of finding the right people and building the right team that you can trust. It’s not about doing everything yourself; you can’t do everything. You have to delegate every specific task to the corresponding team member within that profession. Extensive knowledge in real estate is not required, this is why you create a team of various expertise as your advisers and who will help close a successful transaction after transactions.
What does the team look like?
The most important member of the team is yourself. You will be overseeing and making sure everything is running smoothly. The second member is the loan officer. Your loan officer will be fighting for you to get you qualified to purchase real estate. Once you have the loan in place, you’re ready to buy. The third member is the real estate agent. Your agent will find and locate your investment property. The fourth member is your escrow officer. The escrow officer will ensure all parties follow all instructions set forth in the contract. The fifth member is the title company. The title company will ensure no clouds on the title that will affect the ownership of the property. The sixth member is the general contractor who will repair and remodel, if needed, to increase the value of your investment. The seventh member is your CPA. Your certified public accountant will act as your financial adviser. And last, if you decide to hold on to some of your investment properties you will need to have a property management company that will manage your rental properties. Rental properties are great for monthly passive income from the cash flow or you can aggressively flip properties for an instant lump sum of money. The lump sum of money earned can then be used to purchase another property, fix it up and sell it. Then you can do the whole process over again.
Choose Your Team Players Well
It’s not important to learn every aspect of what goes on in the process of how to invest in real estate. What is important is finding the right team you can trust that can help achieve your goal. As Elliot (2012) quoted Steve Jobs in his article, “Make sure you’re hiring only A-players.” Your success as a real estate investor heavily depends on the quality of players you select in your team. Your job is to run the show, and trust every professional in your team to do their job at the highest level.
Elliot, J. (2012, November 28). Steve Jobs’s Tips for Hiring Your A-Team. Retrieved from https://www.entrepreneur.com/article/225093