If you’re looking to get started in real estate, the first few steps are going to be organizational. Long before you put money down on a property, you’ll need to gather the right tools to understand the marketplace and to assess the risks of any particular deal in detail. As you put together the contacts and team members you’ll need to rely on when you’re making deals and researching properties, there are a few key roles you’ll want to make sure you fill right away. There’s a lot you can learn through doing in this kind of market, but there are some core services you’ll need at your fingertips from day one.
Choose Your Accountant Wisely
Taxes are a big part of your overhead when you invest in properties. If you choose to hold a real estate investment for rental income, you’ll need someone to help you prepare your quarterly taxes and figure out how much to set aside along the way so they don’t cause a cash crunch. If you’re buying to resell, taxes become even more important, and there are key strategies for reducing your tax footprint by streamlining your business model in the direction the tax laws currently lay down the right incentives. Since the tax laws change every year, it’s not a process of just learning it and moving on, either. Before you start buying and selling, make sure you have someone in your corner to do the specialized part of your tax work. Established firms like Taylor Equities operate this way because good accountants often save you more than they cost.
Meet With Mentors
If you’re just starting out in the market, research can be difficult. That’s because often, you don’t know quite where to start or what you need to be checking out when comparing properties. Even the simplest deals require you to learn several factors including the market cap in the neighborhood where you’re buying, and working with a mentor who understands the industry is a good way to learn what you should be looking for as you search for each new deal. Sometimes, established investors like Steven Taylor, Taylor Equities will take new investors under their wing. Other times, you’ll find an experienced investor who is looking for a few quiet sponsorship candidates, and they can often be a source of information about how to navigate the industry.
Make Friends With Service Providers
From appraisals to construction to interior design, it takes a lot of work to get your return on a real estate investment. Of course, that work doesn’t have to be a DIY project if you know who to call and you plan your finances right. Make sure you spend some time getting to know your choices when it comes to contractors and other service providers you’ll need to call for everything from building inspections to renovations to the property management people and real estate brokers who will put your property out on the market as either an open rental or a listing for sale after renovation. It’s not an absolute necessity because you can get industry referrals as you navigate your first couple deals, but you can streamline your process if you know exactly who to call in a given situation.