Vital Team Members Every Commercial Real Estate Investor Needs
Investing in real estate is a team sport. Who do you need on your side if you hope to win it?
A whole team and companies is involved in every real estate transaction. This is true of residential home sales, and commercial real estate sales. There are appraisers, financiers, underwriters, and more, who all work together to make the deal happen.
Experts to Have in Your Corner
Some professional and vendor choices may be out of your control in certain transactions, or may come and go as you invest in different deals. Others will be consistent experts you work with on a regular basis for arranging acquisitions and sales, as well as handling property management.
Your core team may include:
- A commercial real estate broker
- Real estate attorney
- Insurance agent
- Title company
- Commercial mortgage broker
- Property management company
As in any team sport the quality of your team members will make all the difference in how you perform. Fees are often covered by the other party, and there is typically little difference in costs between the best and the amateur service providers. So, look to recruit the best you possibly can.
The Risks of Going without Pro Help
Commercial real estate investment can be highly profitable. We also know that it is a substantial investment, in a litigious environment. Brokers carry errors and omissions insure which can provide great protection and savings when selling a commercial property. Without it investors can be tangled up in costly legal battles for years. The experts and specialist attorneys can ensure contracts, disclosures, and other agreements are structured well to minimize liability, and maximize profit potential. It’s amazing how a few check marks and lines of text can make the difference of tens of thousands of dollars, if not a lot more.
It’s worth noting that the most knowledgeable, experienced and wealthy commercial real estate investors in the world continue to use Realtors and attorneys to represent them. If they still find there services invaluable, then no one else should be going without them either.
Quick Tips for Finding the Best Team
- Ask for referrals
- Research them online
- Look for specialists in your type of deals
- Interview multiple options
- Continue to build the relationship