I believe it was writer John Donne who years ago wrote that “No man is an island”. That is certainly true in real estate and note investing. Most of us do not have the time, skills, license, or knowledge to know everything or do everything about real estate and real estate notes. You cannot do it alone. You need help and a good team to help you accomplish your business goals. Years ago, there was a radio show and television show about a western character called “The Lone Ranger”. While that was his name, he was not alone as even the Lone Ranger has his trusty sidekick, Tonto, to help him. If you are to successful as a real estate and note investor, you need a team to assist you. Here are a few persons that you will want to have on your team as a note and real estate investor:
1. Attorney and/or title company- There will be legal issues that you will encounter. In most states I work with, you will need an attorney or title company to close your purchase or sell of real estate and prepare the closing documents. While every attorney might be have graduated from law school and passed the bar, not all attorneys are the same. Find an attorney who understands real estate investing and note investing.
2. Tax professional- Whether your tax professional is an accountant or CPA, work with someone who understands not only the tax laws but your specific tax situation.
3. Title company- They can be helpful with doing a title search and other issues like insurance.
4. Real estate agent- If you are working to sell or buy a property, you might want to use a real estate agent. Like attorneys, not all real estate agents are the same. Make sure you work with an agent who understands your goals as a note investor and real estate investor.
5. Mortgage loan originator- If you are creating real estate notes, you will want to work closely with a registered mortgage loan originator in the state where you are creating a note. While there are instances where that might not be necessary, they can help you create a note that is worth more and keep you from being featured on the evening news for doing shady real estate deals. They will help keep your loan compliant and avoid regulatory headaches if you are owner financing.
6. Insurance professional- Whether you are buying a note or buying a home, you want your asset protected in case of fire, theft, hurricaine, or the like. Make sure you have a good insurance professional on your side.
7. Servicing agent- You will want to have your real estate note serviced by a company licensed to do business in the state where the property is located. This will not only make your note more valuable, but it also will insure that it is being done according to law.
8. Self Directed IRA custodian- If you are using retirement monies in a self directed IRA, please consult them BEFORE you finalize your investing steps. It is important that you know all the do’s and don’ts in your steps before you do that to keep your investing steps compliant with current tax laws.
These are a few parties that you will want on your team. There will be others depending on your circumstance and what are your goals. Best wishes in your real estate pursuits.- RLW