the-abcs-of-real-estate-investing-ken LifeFeeling

setting up your company. Should you set up a corporation, a limited liability company, or
some other business entity? You’ll need to know the pros and cons of each to make that
decision. Regardless of which you choose, having a formal company established will
protect your personal assets and provide tax advantages to you. If you need more
information before choosing your own business team, you should contact:
• Your own attorney. You’ll need this person to file the paper work with the corporation
commission. There are do-it-yourself kits, but unless you know what you’re doing, I advise
against them.
• Your own accountant. This person will be able to give you tax advice based on your
own personal financial situation.
THE PROPERTY SEARCH TEAM
The property search team includes people you will most likely have to find on your
own. I recommend interviewing several professionals in each field until you find people you
like, who know the market, have your same level of integrity, and who understand they are
there to help you achieve your goal. Both of these professionals can also help you establish
the rest of your team especially for the property inspections commonly called due diligence
once you get into escrow.
• Real estate broker. The real estate broker will help you understand your market and
help you find properties.
• Property manager. This person will help you assess the properties you are considering
from an operational perspective. They will give you a solid idea of what you are getting
into.
THE OFFER TEAM
Your property search team will most likely refer some or all of these professionals to
you as you need them. That’s another reason why who you choose as your real estate broker
and your property management contacts are so critical. They set the tone for your entire
team and therefore your entire work experience. Choose wisely!
• Attorney. Your attorney will certainly help you set up your business, but he or she will
also help you wade through letters of intent and purchase and sale agreements.
• Lender or mortgage broker. Find a lender or broker who understands the business of
property investing. Not only will they lend you money, but they will also provide you with
leads on other properties that are ripe for sale.
• Investors. By communicating your goals and doing the work of building your team,
you should find several sources of equity who will entertain investing in rental property.
• Contractor/Rehab specialist. Contractors see things you and I don’t when it comes to
walking a property. Before I sign any deal, I have a contractor perform a detailed inspection
and file a report of all critical and noncritical repairs.
OTHER TEAM MEMBERS
From time to time, you may find you need these professionals to assist with projects that
arise when either considering a property or once you own it. As with the professionals on
the previous list, these team members will come to you through referrals.