As you embark on your South Carolina real estate investing venture, realize that although you’ll be doing most of the work and (hopefully) seeing a nice profit, the entire process is a collaborative effort.
You wouldn’t be able to start a new job without the proper training, and you probably wouldn’t be able to successfully invest in the stock market without the proper guidance. So it is with real estate investing. Gone are the days of quick-and-easy buying and flipping with enormous profits. You need a plan if you’re going to succeed, and you’re also going to need some help.
Investing as a Collaborative Effort
You can know all there is to know about real estate, but there are some things that you absolutely must leave to the professionals. Throughout the investing process – and not just the first one, but with each and every property you purchase, you’ll need the following professionals to aid you:
- An attorney. A lawyer will help you wrangle through any/all legalities of buying real estate. Any contracts that come as a result of the transaction must be written up by a lawyer.
- Title or escrow company. The best ones to go with are the ones that work mostly with investors; they’ll speak your language.
- An insurance agent. Not just any insurance agent, but one that specifically deals with real estate contracts and such.
- A CPA. As investing should be treated as a business, you’ll need an accountant to help you with your finances and profits. The theme here is to find one that understands real estate and investors.
- A mortgage broker. Again, it’s good to stick to one that understands investors and has experience with investors.
A contractor and a plumber. If you’re investing in a fixer-upper, you’ll need to have a contractor come in to determine if there are structural or cosmetic repairs needed. A plumber will be able to tell you if there are any leaks or problems with pipes. Overhauling the plumbing for a house can be an enormous undertaking, just like with making structural repairs. You want to shy away from the structural issues as these tend to kill your profit.
Just as lawyers specialize in an area, so should the pros that you choose to work with. This helps to keep everyone on the same page – and operating in harmony.
The key to fast-track your success lies in your ability to apply the rule of leverage in every aspect of your business. The vast majority of investors believe that leverage only applies to the use of OPM or Other People’s Money. Nothing is further from the truth.
Time leverage and expertise leverage are just as important. For example, you leverage your time by employing contractors to do the renovation work, and you leverage your expertise by assembling a team of experts such as the one mentioned above.
As the old saying goes… you can either do it the easy way or the hard way. Remember that you should always do what you do best, and leave everything else to the rest. It’s your call.