Once you have decided that you want to be an investor in real estate and you are in it for the long haul, you need to assemble your team of experts.
Depending on how conscientious you were in the past about guarding your credit, this process can take up to one year. You will need to interview the members of your team because you will be working with them continuously.
Here are the steps that you have to do.
1. Visit your local banker and speak with the person who deals with all loans. If the bank is small enough, this person will handle all loan inquiries in that particular branch.
2. Assemble your papers. This means bank statements, pay stubs, cds, titles to properties you already own.
3. Find the addresses of the three major credit bureaus. Ask for your most recent credit report (you may or may not have to pay for this service).
4. Begin interviewing mortgage brokers. You do not need to send in paperwork to all the mortgage brokers that you know, as every time they access your credit report there is a corresponding decrease in your credit score.
5. Work with a real estate agent who has done the same thing you are going to do. Someone who sold you your million dollar home may or may not have had experience in investing, very simply because they have different focus and have defined niches.
6. Your real estate agent should have a list of everyone that can help you manage and or keep up your investment. This list will include appraisers, inspectors, plumbers, electricians, cleaning ladies, carpenters, painters, landscape or yard maintenance person. If you decide to have someone manage the property for you, interview not 3 but 5. This is a crucial choice. It can save you a lot of frustration, not to mention lost income.
7. You will need an attorney that will do the legal work for you and it has to be a real estate attorney.
8. Once you have assembled your team, set up a meeting with your finance team (banker/mortgage broker/accountant) and tell them what you intend to do.
9. Set up a meeting with your real estate agent, the one who is going to find you the properties. Be specific in your criteria when defining what you want to invest with (is it location? type of construction? undeveloped land? a new construction? is it a single family home? is it a multifamily home?). Those are the questions that only you can answer.
10. Know the area you want to invest in like the palm of your hand. Where are the grocery stores? Where is the nearest bus stop? Is there a laundromat close by? How are the buildings in that area? Do the owners maintain them? The most important criteria: Will you live there?
You have assembled a team of experts and your task is almost done. That is just the preparation for your buying process. You have to be doing all of this in addition to your family/social obligations and your career. Give yourself some time
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