Your All-Important Team
The following lists include all the people and professionals you will eventually have on your team and how to evaluate and select them. While the lists may appear overwhelming, understand that you will accumulate these contacts over time, and you don’t need all of them at all times. There’s no need to run out and start interviewing paving companies, for example, when you don’t have a parking lot that needs resurfacing. You just need a few key team members to get startedâan attorney, an accountant, a real estate broker, and a property manager. But here are the full lists to get you prepared:1. YOUR BUSINESS TEAMBefore you do anything, even print your business cards and letterhead, get your business set up correctly. To do that you’ll need to talk with an attorney who will advise you about setting up your company. Should you set up a corporation, a limited liability company, or some other business entity? You’ll need to know the pros and cons of each to make that decision. Regardless of which you choose, having a formal company established will protect your personal assets and provide tax advantages to you. If you need more information before choosing your own business team, you should contact:
- Your own attorney. You’ll need this person to file the paperwork with the corporation commission. There are do-it-yourself kits, but unless you know what you’re doing, I advise against them.
- Your own accountant. This person will be able to give you tax advice based on your own personal financial situation.
2. THE PROPERTY SEARCH TEAMThe property search team includes people you will most likely have to find on your own. I recommend interviewing several professionals in each field until you find people you like, who know the market, have your same level of integrity, and who understand they are there to help you achieve your goal. Both of these professionals can also help you establish the rest of your team especially for the property inspections commonly called due diligence once you get into escrow.
- Real estate broker. The real estate broker will help you understand your market and help you find properties.
- Property manager. This person will help you assess the properties you are considering from an operational perspective. They will give you a solid idea of what you are getting into.