I am thinking about making my first property purchase (live in one unit, rent the others), looked at a few videos on youtube and they all seem to say the same thing. Don't go at it alone when first starting out.
Depending on which video you watch they all have different list of people you should have "on your team"?
- what would you say are "must have" people and those "nice to have"?
- how should an investor (me) look at estimating the costs of hiring or consulting with these people?
- what is the common factors that define a fair compensation for their services (e.g: a phone call with a silly question, vs. them going onsite and doing XYZ for me)
Noob wants to buy a multi-family building. What experts "must" you have at your side and what is a fair compensation for their time – how to account for these when looking at deals?
byu/Intelg inrealestateinvesting
Posted by Intelg
2 Comments
According to the devil (BiggerPockets) you need a lender, realtor, contractor, property manager. That’s where you got that idea from.
Lender: they will love you already just for existing and wanting a loan.
Realtor: Doesn’t matter, they aren’t going to bring some new guy deals so just find one that is competent and can take you to showings.
Contractor: Most important for some, I do all the work myself so I only hire for specialized stuff like HVAC.
PM: Do what you would do with any other service provider. They charge a clear rate. Look up reviews.
You don’t need any of these people because you aren’t about to be Warren Buffet buying 20+ properties every year. Don’t rely on a “team” that only makes money when they take it from you. Rely on yourself & learn everything they know.
Good cpa pay for themselves times over
Handyman or turn contractor that’s cheap and trustworthy. 80 % of your turns will be floors and paint.
Probably need a mechanical guy for boilers/plumbing
Grounds contractor
A lawyer if you are not comfortable with legal documents.
A great relationship with a local banker. My banker literally made me millions. Being able to borrow when you need to is priceless