There are many things that can lead to investment property success, but the most successful property investors know the importance of building a team of reliable industry professionals around them, and developing this team over time. When you think of all of the individuals and professionals you’ll enlist in your property investing career – from finding properties, to financing them, managing them, and eventually selling them – the number of collaborators becomes fairly large.
For this reason it is key that you develop relationships to ensure they are mutually beneficial, and that you get the most out of the relationship as possible. Though some investors believe that having paid for some of these services, that should be enough, this in my opinion is a short-sighted view of benefits that can be achieved by building industry relationships.
Here are some of the key dream team members you’ll need to select, if your aim is to become a successful property investor:
Mortgage broker (c)
The captain of the team, if you can’t secure the finance, then you can’t secure the property. By utilising the skills of an experienced mortgage broker to help hunt down the best finance options possible, over time, will save you money and potentially increase your borrowing capacity. Every lender treats the assessment of your investment loan differently, from the percentage of the rent allowed, to either accepting negative gearing or even allowing you to borrow more if choosing a fixed interest rate. A strong and continuing relationship with your broker of choice is key to your success as a property investor.
Many investors buy their property via a buyer’s agent, a professional agent who is highly trained in the delicate art of negotiation. They offer a full search service that has the agent sift through the market, shortlisting any properties that meet your criteria. The shortlisted properties are then evaluated and negotiated via a private treaty or auction bid. Use their experience to your advantage and have them obtain the lowest possible price.
Direct property investment specialists
Different from buyer’s agents, direct property investment specialists deal in land and construction investment properties only, based on your investment goals they offer many services, from doing the due diligence for you, sourcing the land and builder, recommending a local property manager, to arranging for your depreciation schedule once the property has been built. They deal in properties nation wide, so can be of great benefit if you want to broaden the footprint of your property portfolio.
An important relationship to build over time. Even if your strategy is to invest in completely different suburbs or cities; having a great relationship with the managing agent will ensure that any dramas are responded to, and quickly. You can also potentially negotiate multi-property management deals (even if the suburbs are outside of the agency’s traditional territory), if the relationship is sound.
A good conveyancer is vital for the successful investor, someone who is prompt, timely, and explains contractual clauses in the appropriate level of detail is key. Don’t go for the cheap conveyancing ‘chop shops’, if any problems arise, having the services of a reputable law firm is essential.
Find one that is experienced and relies on clients who are property investors. Finding an accountant who understands the constantly changing landscape of taxation law, from an investor perspective, will not only save you time and money; in the form of additional claims you didn’t think could be made, can mean the difference between failure and success. Overall; like the rest of your dream team; you’ll need to find an accountant who can grow with you over time.
Making your goals and ambitions clear in the beginning is the most important thing to do in this relationship, most important is their ability to guide you about risk, you are building wealth through property, by using your income and your ability to borrow, these need to be protected, your advisor will be able to set the appropriate levels of protection and ensure that they remain appropriate as your portfolio grows.
Supporting your investment property dream team:
So you’ve identified the roles you need to find for your investment property dream team, and you’ve gone out and recruited top rated professionals based on the skill sets needed. But the relationship shouldn’t end there.
In reward for good service and maintaining a working relationship that is efficient, mutually rewarding, and one where you can call on an ‘urgent favour’ in a time of need (and have the confidence that your request will be actioned quickly), you need to nurture your team and these relationships.
Here are some key ways to support your dream team members:
Referrals: The most valuable way you can reward great service and strengthen the relationship is to pay it forward. Recommending a dream team member to a friend or colleague based on excellent service will certainly be appreciated and valued.
Linked In Recommendations: Connecting with your dream team on professional networks is also a great way to hear updates from them, even when you aren’t directly speaking. Writing a small recommendation for their profile, based on good service, is a great way to give back.
Communicating your desire to grow with them: Where appropriate, and with your investment property dream team members where an opportunity exists to use their services again and again; let them know this, communicating that you are a professional investor and are looking for partners to ‘grow over time’ with, will strengthen the relationships further.