The investor who takes a long view of real estate investing is a professional investor. There is no substitute for buying low and selling high but real estate investors know the quick turnover is difficult to accomplish and that every real estate transaction has built-in expenses that cut into that quick profit. Like all forms of investment, your real estate plan will include a description of your risk tolerance and appetite. Making money in real estate involves hard work and discipline. There is no way around those components.
To help analyze each transaction and assure conformity to your overall investment plan, real estate investors build a reliable team of professionals. Your real estate consulting team should include:
· An agent
· An appraiser
· A home inspector
· A closing attorney
· A lender for purchases
· A lender for sales
· A maintenance expert
· A general contractor
The general contractor should have a general knowledge in plumbing, electrical, heating and air-conditioning, roofing, painting and flooring systems. The maintenance expert should be familiar with cleaning costs, lawn services and windows cleaning services.
This team of experts can help in many ways. However, their biggest contributions will help protect the real estate investor from the greatest sin, which is overpaying for real estate.
The reason to build a team of professionals is to heed their advice. Investors must understand the numbers behind the numbers, but they must also respect the input of their chosen professionals. When the numbers do not add up, it is time to move on to the next opportunity.
The evaluation of these numbers is the moment of truth in every real estate transaction. When the transaction does not fit, the professional investor walks away. Follow your plan and the profits will be there.