Gunnar Phillips, the personal trainer for Chris Hemsworth and Billy Dee Williams (At 82 years old, yes. Talk about goals!) says success is a "joint effort." He continues on the topic by saying doing a workout with a partner "can help motivate you to reach your goals."
His philosophy applies to real estate investing as well: having the right partner can make all the difference. And just like when you're hitting the gym, it's not only about fostering the next deal—the right partner can also help motivate you to reach your long-term goals. Here are some partners every investor in Ann Arbor real estate needs.
A Property Management Company
Even if you have the most brilliant strategies and thoughtful tenant retention plans, you're only one person. You may have thought, "If only I could clone myself, I would be able to do so much more." If so, you're right: the best way to transition from episode one to episode two of your real estate venture is to hire a local property management company.
Not only do property management companies help you fill vacancies, but they can also help manage tenants—new and old—and handle much of the infrastructure of your rental business. The work of an Ann Arbor property management team can free you up to find, evaluate, and close more deals. As most successful investors know, passing off the menial tasks lets you focus on what you do best.
A Real Estate Accountant
The uneasy feeling you get in the pit of your stomach as you submit your tax returns, knowing you could have saved more money, can be erased with an accountant that specializes in real estate. Many real estate accountants have cut their teeth learning how to squeeze the tax code for every lawful dime they can—all to benefit your bottom line.
The benefits of a real estate accountant are compounded by how they can help you strategize with respect to your finances for future deals, joint ventures, or the next few fiscal quarters. Proactively structuring the flow of your capital can help you save—and earn—thousands. The best way to access these earnings is with the guidance of a local Ann Arbor real estate accountant who specializes in your specialty: investment properties.
If you prefer to keep at least some of your accounting in-house, you're going to need software that can back you up. With the right app, you can compare properties to see how each is performing. You can also aggregate data, grouping it to generate reports about your overhead, monthly expenses, revenue flows, and even seasonal income trends. If you're not sure where to start, a property management company in Ann Arbor can recommend a few useful apps to get you on your way.
The Right Lenders
While all lenders provide capital, you need to focus on those that specialize in the kinds of investment in which your company is involved. Sit down and talk with lenders who have a provable track record of financing multi-family or single-family homes—depending on your focus. Come to the meeting prepared with specific questions regarding common obstacles and opportunities encountered during the lending process. Talk to each one about the time required for closing and how they deal with hold-ups.
Most importantly, ask for a few references: these could be other realtors, borrowers, or attorneys. Beware of lenders or brokers who are trying to diversify by adding new types of properties to their portfolio. Even if they offer discounted rates, the savings may not make up for their lack of experience.
Insurance Companies Experienced with Real Estate Investors
Insurance companies—like lenders—may appear to be one-size-fits-all on the outside, but when you scratch beneath the surface, you will quickly see that's not the case. There are several things to keep in mind while partnering with an insurance company. Your insurance company of choice should:
- Specialize in working with real estate investors.
- Offer policies where a new home can be added and one that has been sold can be easily removed.
- Provide financial protection from the most common—and some of the outlying—issues that arise in the Detroit area.
- Cover homes that are vacant or under renovation.
- Be ready and willing to explain their policies—particularly exclusions that could present issues.
- Cover homes that are titled under the name of a corporation or LLC if that's how your business is structured.
A Real Estate Attorney
An attorney that specializes in real estate is often an undervalued asset. A qualified real estate attorney can help you to:
- Negotiate a better deal: This can result in more than just a juicier closing; it could mean a considerably higher profit margin in the long run.
- Protect you from crafty buyers and sellers: When times get tough, even well-meaning people may try to sneak something into the contract language to help sweeten their side of the deal. An experienced real estate attorney can help protect you.
- Craft contingencies that benefit your interests: In every deal—regardless of which side you're on as an investor—you have some leverage. A good real estate attorney knows how to use this to insert contingencies that help secure your side of the deal.
- Make sure you are compliant with the laws of Ann Arbor and Michigan: You don't want to be caught with your palms up—and empty—by a local or state laws. With a real estate attorney in Ann Arbor, you're more likely to be safe than sorry.
Which Partner Can Help You Find the Best Properties?
To locate the best properties, you have to know the lay of the land: this is where a property management company in Ann Arbor can really help give you an edge on the competition.
With an in-depth knowledge of the Ann Arbor and Detroit area, and years of experience helping clients find the best deals, JMZ Management can help strengthen your position and your investment portfolio in Ann Arbor.
Whether you need a full-time lifting partner or just an occasional spotter, JMZ Management can help you get financially fit and ready to flex on the competition! Get started with our free guide, "Real Estate Investing: Grow Your Portfolio!"