Teamwork Is Key for Residential Real Estate, Part 2

As you continue to build your residential real estate team, there are a couple other key players you are going to want to align yourself with.

Always having a real estate attorney or a real estate CPA in place will save you a lot of time, especially if you are joint-venturing with an investor. If you’re the investor, you still want to have your attorney verify all your contracts and all of your paperwork to make sure that you’re protected.

Additionally, you will need an attorney to draft those documents for you. So having a real estate attorney in place is going to cost you some money, but at the end it will protect you, because those contracts are only in place for one thing and one thing only -- if things go bad.

You do not look at those contracts if everything goes great. If everybody is making money, nobody looks at those contracts. But if a disagreement arises, that’s the number-one thing you have to do: Go back and look at the agreement and make sure that you are protected. So you want to spend the additional money to have those contracts in place and have your attorney review them.

Additionally, the laws can vary from state to state, so if you’re partnering in an out-of-state deal or somewhere where you’ve never done business before, it is imperative that you have someone who understands the laws in that area. Also, some states require an attorney at closing, but many do not. Having an attorney who can advise on these matters is essential.

You will also want to make sure that your attorney is strictly an experienced real estate attorney. Some investors think they can cut corners by hiring an “all-purpose” attorney. This can often end badly. You’ve heard the saying, “You get what you pay for,” and this is particularly true regarding real estate attorneys.

Adding a properly trained CPA to your residential real estate team is a must if you want to maximize your business. Understanding how to protect your money and properly reinvest it cannot be underestimated regardless of whether you’re a new investor or a seasoned pro.

Take the time to make sure you have the right players on your residential real estate team. Sometimes it may take a little work to find the people who understand what you’re trying to accomplish, but it’s worth every minute spent doing so. Investing is not an individual sport; you need all the right players!