Who Do I Ask When I Have a Problem – Greatest Fear #14
The next obvious choice is other local investors and people you meet at a local real estate investment association (REIA). While I am sure that most of these people have good intentions, you may get someone with an ulterior motive. It could be to eliminate you as competition or to actually get the specific property you are looking at.
I am not paranoid but the most successful investors do not come to REIA meetings in many cases and the person you may be asking may not know what he is talking about. There are better alternatives.
Most investors have seen or heard a national guru talk about real estate investing. They often are not in the state you may be working but they profess to know about all types of transactions. If they have students in various states, they will have some knowledge of various laws. They may make suggestions but you will find that many times they will tell you to get local legal advice.
The other group that you should be talking to is local professionals who are actually in the business – this is your so-called Dream Team. Even if you get answers from the above individuals including the REIA attendees, you should double-check the responses you get.
Who makes up a Dream Team? First and foremost is a closing agent. The best way to check them out is by referral from investors who are actually closing deals with them. Except in a few states, you do not need an attorney to do your closings – a licensed agent is fine. The key is to work with people doing deals – not ones who do closings as a sideline.
You’ll also need a contractor for cost estimates to use to get price reductions and possibly do rehabbing, an appraiser to do FMV appraisals, an accountant or bookkeeper or CPA for accounting,
I purposely did not mention real estate agents since they can be helpful but they want to be paid and that likely means buying their or other agents’ listings at or near full market value – not really workable for us as wholesalers. We need to buy properties at 70% of after-repaired value (ARV) minus the repair costs.
Your entire Dream Team can be assembled in a matter of minutes once you find out who is actually doing deals in your area. Ask for referrals, interview the “pros” you’ll be using and ask them about their experience working with investors. Choose the ones you want to use and go to them as often as you need to so you have a comfort level doing your deals and asking informed people who know what is happening.