The economy is enabling many opportunistic people to partake in the role of investor/landlords. Loaded with cash, low interest rates, and inventory that is reasonably priced, these new investors are buying up homes quickly. In the six part series we will discuss your INVESTMENT TEAM, KNOWLEDGE, PLANNING, FORMULAS, THEORIES, AND CREDIT. Each item is for the preparation of becoming an investor, later we will discuss how to begin. As you read keep in mind there are exemptions to every rule and in order to keep this article short and to the point, I have cut out a lot of examples. Today's focus:

INVESTMENT TEAM

If you read about wealthy real estate moguls, they tend to have a team of individuals they can rely on for help. Here are some of the individuals that you should hire, befriend, socialize, or network with to prepare for your success.

Real Estate Lawyer: No need to hire one, just have contact info (i.e. name, number, email) handy in case you need counsel. They are good leverage with legal letters that can give you the edge in resolving issues.

Realtor: You need someone that can help you choose the right home. He/she should be able, but no limited to; finding good deals in neighborhoods, properties that net you the most rent or that will have the most equity increase over a period of time, also have a keen eye for repairs, knowledge of upgrades or interior design to increase worth or equity. Your realtor needs to be your right hand person. You should be able to do the 3 t's with this person. . .Talk . .Trust. . & Triumph

Loan Agent: This is a very important piece of the puzzle. You should have a loan agent that understands your overall goals in real estate. Having a close relationship with this individual can be very fruitful for you in many aspects of your loan. They can reduce cost, waive fees, reduce the number of credit checks, and can recommend changes to help you get better loan terms. Your agent should also understand that you have chosen him to be your go to person for your real estate loans.

Maintenance Person: From gardeners to pool guys, being loyal to an individual or a company can net you reductions for every account you have with them. Make it a point to have someone dependable with good knowledge. I have had situations where we called a clients gardener to bid on a job before we even bought the property in order to account for the costs of the landscaping. The savings you net by being loyal can help you reduce overhead on your investment.

Contractors: Just like lawyers and realtors there are thousands of these individuals. You should look for one that is honest, has good references, has a background in interior design, has advanced knowledge in building materials, and most of all knows how to cut the waste out of a project without cutting corners. This person should be able to complete your work up to city code without charging you an arm and a leg. The contractor I use brings design books to the job site and explains in detail (both in the contract and verbally) what costs I will incur and some of the unforeseeable (to me) things that may occur.

Architect: If you plan any additions or anything that changes your structure, do it with a permit. A permit will require blueprints that an architect can create.

Debris removal: if you buy a foreclosed home or a home with a lot to discard, its normally cheaper to pay a separate company to remove everything. Some companies will even come over to see if they can salvage any items and will remove them for free.

Property Management: if you do not want to deal with the property then hire a property management company. You should ask for a fee schedule (a fee schedule will tell you what you will pay to fill a vacancy, applications, monthly fees, and the prices for all the tasks they will be responsible for).

Accountant / bookkeeper / Tax person: Very important to have someone that will help you navigate thru the IRS rules. They should be able to tell you what you can write off in your investment. Always remember to ask for a fee schedule first. You want a person with at least 5-10 years of experience in investment property.

These are some of the most important people you will need in order to succeed. Remember 2 things, it's business not personal. Select individuals you can communicate, direct, and confront. Be careful if you use friends or family. Secondly, don't put all your eggs in one basket.

Furthermore, YOU are very knowledgeable, but YOU don't know everything. This is why choosing the right professional is the key to your success. A good investor understands the importance and savings a team can have on the end result. "Invest often, but do it wisely".