Property investment is not easy – it requires long hours of research and legwork to find the best property for maximum profit.
However, it is not always possible for one person to do everything alone which is why you need to set up a property investment team. This team can consist of a mortgage broker, solicitors, accountants and even other property investors.
We recently interviewed property investment expert Kathryn Sands of the Property Entrepreneurs Network who shared her views on how and why you should set up a property investment team.
Form your investment strategy with a property mentor
When you first decide to invest in property, it can be difficult to know where to start.
A mentor or property coach can point you in the right direction and help you create the foundation of your property investment strategy. They will be able to tell you what kind of property to invest in, help with the financing and purchase processes and explain things to you as you go along.
Finding a coach can be tricky but Sands says you might be able to find mentors if you already know experienced investors. You can attend seminars and other meetings where other investors gather and even get advice from ‘mini’ mentors.
If you do not have a network of investors to call upon, you can find property coaches offering their services. Sands herself feels that it is worth hiring a dedicated property coach as long as you know they are experienced and trustworthy.
Hire an accountant to manage your finances
Sands’ second step is to find a good accountant to manage your finances. She defines a good accountant as someone who can give you options and explain the pros and cons to you.
She adds that your accountant must be able to give you a solution specific to your needs, no matter whether you are self-employed, you have a trust or you already own three properties. Every investor has a different situation so your accountant should not be giving you generic advice.
Sands revealed that in her own investment career she dealt with three bad accountants before finally finding one who she could work with. She explains that her current accountant understands her financial situation and has experience in the types of properties she prefers to invest in. One way to find an experienced accountant, she says, is to ask for referrals from other investors or even other business owners.
If possible, you should find someone who can offer you actual financial advice instead of just preparing your taxes. Poor financial planning will stop you from achieving you investment goals and may even result in bankruptcy and foreclosure.
Appoint a solicitor to take care of the legal matters
A solicitor or conveyancer is an important addition to your property investment team because they can handle all the legal paperwork that comes with the property purchase process. A good solicitor can help you negotiate better terms and conditions for your contract of sale and add clauses to your benefit.
Again, you need to make sure that your solicitor has experience with mortgages and clearly understands your purpose.
Find the right mortgage broker for your home loan
The next person on your list should be a mortgage broker. Sands personally prefers a mortgage broker over a bank explaining that they will offer you better service since a broker can offer you loan products from multiple banks as well as non bank lenders.
Banks on the other hand are stuck with their own products and they may not be able to provide you the best choice for your situation.
Like finding the right accountant, choosing the right mortgage broker can be a challenge. Try to find someone who is experienced, up to date with recent trends and, most importantly, someone who can understand your situation clearly and give you advice based on that.
Sands’ advice for dealing with a mortgage broker is to ask lots of questions. Ideally, your mortgage broker should have experience as a property investor as well.
A good property investment team can help you create and achieve your property investment strategy. It may not be easy to find the right people, however once you find people you trust and can work with, it is very likely that you will succeed.
Do you have any tips or other partners that you work with while investing? If so, please do share with us your thoughts on the topic.