In this episode of Get Real Wealthy Season 2, Quentin talks about the importance of building a real estate power team.
Quentin says that it’s important to build the best power team possible based on your current position, and there are seven members you need to have on your team. The first ones are realtors and brokers. The second ones are lawyers and paralegals, and the third ones are bankers and mortgage brokers. The fourth ones are home inspectors. the fifth ones are appraisers and the sixth one are the environmental companies for phase one and phase two. Lastly, there are insurance brokers. Quentin adds that realtors and brokers change depending on the type of properties you’re buying. He adds “I don’t suggest that you use a real estate broker who does one to four-unit properties in the five plus unit range. Because the type of contracts they use, and the due diligence that you do is very different.”
Secondly, we have lawyers. Quentin says that you need to do is find lawyers that will work with you on your level. Furthermore, the lawyers dealing with residential are going to be different from the lawyers who are dealing with commercial properties. As for mortgage brokers, the same rule is valid. In the residential space, there are mobile mortgage specialists who work specifically at a bank. For commercial, you want to find a firm that specifically works on commercial properties. The next ones are the home inspectors. They are people that will help you identify issues with the property, in one to four-unit spaces. As for commercial properties, you need a building condition report, which requires an inspection company. The next member of your power team is an appraiser. Similarly, they vary depending on the residential or commercial space. Oftentimes, the process in commercial is longer than an appraisal in residential, so you need a company that can quickly carry out the project.
The next power team member is an environmental company that can do a Phase I Environmental Site Assessment, to see if there are any environmental conditions in the property that will require you to do some remediation. Lastly, we have the insurance broker or insurance agent, who is going to help you reduce your net operating income and give you the best coverage possible for your apartment buildings. You want to work with somebody who has specific experience doing rental properties. In conclusion, he says that having these power members on your team can greatly help you in your real estate investing career.
Important Links and Resources
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Action Taker's Real Estate Investing Planner, The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate, and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.