Passive real estate investing might seem "hands-off," but we know better. Part of being a successful investor is surrounding yourself with the right professionals to protect your investments, optimize returns, and ensure everything runs smoothly.
Thankfully, regardless of your experience level, there are countless pros to help you make your investments simple and effective in achieving your wealth-building goals. But who do you need? And when do you need them? Here’s your quick rundown of key advisors worth consulting!
When: At the initial planning stage
What They Do:
Why: First and foremost, they help determine if a real estate investment fits your overall financial strategy. Not everyone is suited for every strategy, and your advisor can help you see what best suits your needs, resources, and personality. They also help strategically diversify your portfolio while aligning your risk tolerance with your long-term goals.
When: During the planning phase and regularly for ongoing tax planning
What They Do:
Why: Real estate investments come with specific tax benefits and obligations (depreciation, deductions, and capital gains, to name a few). A CPA ensures you maximize these benefits, structure your investment tax-efficiently, and comply with tax laws. CPAs keep plenty of us out of trouble with Uncle Sam…so they’re worth keeping close!
When: During the investment structuring phase and when drafting or reviewing contracts
What They Do:
Why: They provide legal protection by ensuring all documents (such as partnership agreements or entity formations like LLCs) are airtight – eliminating exploits, loopholes, or potential legal troubles. They’re there to stop problems before they start, but they also come alongside you to navigate legal issues if they crop up.
When: Before making the property purchase
What They Do:
Why: If financing is part of your strategy (as it is for many real estate investors,) a knowledge broker is indispensable. They help secure the best mortgage terms, guide you through the lending process, and ensure that financing aligns with your investment plan. The more experienced your broker is with investors, the better.
When: Post-purchase, if you’re not managing the property yourself
What They Do:
Why: A property manager handles day-to-day operations such as resident placement, maintenance, and rent collection. They’re essentially the face of your investment business. Their job is to keep your properties profitable and protected without your direct involvement.
Step #6 – Estate Planning Attorney
When: Anytime, once you have secured assets you wish to pass down.
What They Do:
Why: You may not want to think about the end of your life, but planning for the inevitable is necessary…and wise. An estate planning attorney will help ensure that your assets – rental properties and otherwise – go to your heirs as smoothly as possible, providing you with a sense of security about the future. They help protect your assets both for you and the next generation.
When: Before closing on a property, periodically revisiting.
What They Do:
Why: Insurance is one of those things that seems like a big waste of time and money…until we need it! Properly insuring your investment properties is about preparing and protecting your assets from the unexpected. Over time, your insurance needs may change. A knowledgeable insurance broker can help secure the right coverage at the best rates, offering you peace of mind that your investments are protected.
Start investing with REI Nation, where you invest and we handle the rest!