Hey guys, I’m just wondering which team members are absolutely neccessary before doing a deal and which ones can wait until you find a deal? I’m thinking a few financial sources, RE lawyer, buyers/sellers agent if needed, appraiser, and an inspector are needed before finding a deal. What do you guys think?
Also, do the sellers draw up all the forms and you and your lawyer review them, or does the buyer also come up with some of the forms?
bankers and appraisers are key players. a poor appraisal can really screw up a nice deal.
We bought a distressed property in Jan for rehab. Worked with a new appraiser who didn’t understand the concept of “rehab”. He put some notes in the appraisal that got the bank all worked up, they required some repars to be completed within 5 days of closing, and almost tanked the deal. I’m glad he didn’t go INSIDE.
My regular appraiser who knows us and how we work would have avoided a lot of headache.
my banker is who saved that deal. having a track record of success with someone who knows how you work can get you deals that a “regular” banker will pass on.
attys serve their purpose, but I hate them. they’re like nuclear weapons. You have yours so I have to have mine and if either of us actually use them it screws up everything for everybody. except the lawyers.
once you know enough yourself, inspectors are a waste.
I totally disagree. You need have a GOOD inspector who can find little detail wrong. I had a deal last month where the Seller got all bent out of shape over who I used as my inspector as the guy has a real reputation for finding everything wrong with a place. The same guy save my butt back in Dec as he discovered that the brickwork on the back of this aprtment building was being pulled away form the building; even the current owner did not know about it. Its probably a $30k repair bill that someone is going to have to digest (not me).
I have hit plenty of unknowing Sellers with huge request for repairs based on detailed inspections. You can NOT figure out everything wrong with a place by just walking around and doing a visual inspection. I can walk through a house and cite National Electric Code for obviously violations, but you have to get on you hands and knees, crawl around and test stuff to really know what is going on.
Banker is probably the key person; lending is always a pain in the butt so you need a good loan officer/broker who can solve problems and a deal closed. Agent and closing person are also important.
Finding the right people to work with is trial and error to some extent. I’ve worked with plenty of people who claimed to have lots of experience in real estate, but did not work to my satisfaction.
Don’t forget your CPA. They should let you know what records and receipts are critical. Legal tax avoidance is essential to bigger profits 
I think your team also depends on what you plan to do. If you flip, then a top notch realtor is key. If you hold and rent them, then maybe a property manager is key.
There has been a lot of beating on Realtors but I will stand behind the good ones. They are not always the top producers either.
Good Luck!
NDI
Thanks guys. The reason I want to get a realtor is because I am looking for my first purchase and figure paying a bit more will save me headaches for any huge mistakes I would, and i know i will make them, on my own. I am in the process of speaking to lenders, appraisers, etc at the moment so just wanted to make sure I wasnt missing anyone. Then its onto the unenviable task of looking for a good deal in my neck of the woods.
If you user ID there is an indicator of your area, then I hope you do find something. I live in the same area and REI in this area is tough at best. I think things are finally starting to turn toward the investor.
Hey Marcus,
Yep I do live in that area. Things are definitely tough but I just saw a news report that foreclosures were up around 25% for the month of April. Looks like all those interest only loans are finally catching up to some people. If you dont mind me asking, how have you been doing with your deals? Have you been able to find anything within the area, or did you have to go out of it to find a decent deal? Anyway good luck to you too.