Industry Professionals that Can Accelerate Your Investment Career
General Contractors, Property Managers, Real Estate Brokers, Mentors
By Nate Zielinski
Any savvy investor who has been in the real estate investment space will tell you that it is a hard industry to navigate alone. At the onset of a new investor’s career as well as along the way, there are industry professionals that can offer guidance and bring skill sets to the table that the investor may not have themselves.
The onus is on an investor to network, find these relationships, and then develop them over time. There are many facets to real estate investing and it is crucial for investors to open up and accept the help and expertise that is available to them. Some of these professions in the investment industry include general contractors, property managers, real estate brokers, and mentors.
General Contractors
It is typical for new investors in the real estate investment industry to start with fix-and-flip properties. They are usually easier to find and cost less than a rental property in stable condition that can cash flow instantly. While some renovations are minor in nature and can be handled by the investor themselves, some rehab efforts need to be much more thorough and are simply impossible to do alone.
With access to more materials and connections that could save the investor money, general contractors are a must-have to accelerate your investment portfolio. They can complete larger projects such as additions to a house, installing new flooring and carpet, and even expedite painting the interior or exterior of a property. Once an investor has a reliable general contractor, they can be more aggressive when pursuing additional properties.
General contractors are happiest when they have a steady flow of work. As an investor scales their business, so too will the general contractor. Once an investor can fully trust a GC to complete their renovation projects, they can expand their business and seek out other investment opportunities outside of the narrow fix and flip scope.
Property Managers
As an investor maneuvers from fix-and-flip loans to long-term rentals, there will be similar challenges when trying to scale. With most investors being ambitious by nature, they will not want to stop at just one rental property. This is where hiring the right property manager or management company comes into play.
Property managers manage tenant rent collection, property maintenance and upkeep and relay any major issues that tenants are having to the investor. This level of assistance and communication can make a huge difference for an investor who is looking to expand their portfolio. An investor can now schedule their day more efficiently knowing they have help with their rental properties.
Property managers will also allow investors to take on properties at a nationwide level. Investors are no longer restricted to local investments if they have a trusted property manager. This enables investors to achieve their goal of generational wealth from real estate investment properties.
Real Estate Brokers
While general contractors and property managers are there to help investors after a property is secured, real estate brokers can help during the transactional phase of the investment. Brokers can sometimes be overlooked by investors, but their impact can be immense, especially for investors who are already established. Think of brokers as your own personal loan processor throughout the life of the loan.
Finding experienced brokers that take their profession seriously can be an asset for any real estate investor. They will know where to send certain deals that investors may have depending on the scenario. Some lenders specialize in fix-and-flip or short-term loans while others have stronger long-term rental loan offerings.
As an investor, it is a detriment to your business if you spend too much time shopping around for a loan, going over every little detail, and haggling terms with an account executive at a lender. With a broker working with you on every transaction, they can handle the busy work while you focus on finding properties and managing your portfolio wherever you see fit. It is in the broker’s best interest to get an investor the best deal possible to earn more of their business, so an investor should have confidence in partnering up with one.
Mentors
An investor can accelerate their career by finding a trusted and experienced investor who can serve as a mentor as they break into the industry. Mentors serve many different purposes for up-and-coming investors, but the biggest benefits they offer include instilling confidence in investors and reassuring them through inevitable rough patches. Having a mentor in your corner who has seen just about everything in the industry can make a difference when a new investor hits a low point.
Another benefit a mentor can bring to the table is being a partner on the first few deals for brand-new investors. Not only can their expertise put an investor’s mind at ease, but they can also help an investor get better loan terms early on in their career. Due to these partnerships with mentors, investors can qualify for better interest rates, pay less of a down payment and close loans faster.
One of the best parts about mentoring is that it is something that can be paid forward. As investors get to a certain point in their career, they can turn around and be a mentor for new investors. This cycle is important in keeping the investor community strong.
It is worth reiterating that any investor trying to take on this career path individually is leaving a lot of time and money on the table. Forming a team consisting of one or more of these industry professionals is a step in the right direction for all investors.
At the next networking event, trade show, or even the next time you are scrolling on various social media sites, keep an eye out for these types of individuals to help accelerate your investment career.
