Leverage the Knowledge of Professionals to Maximize Your Investing Capabilities

"If I have seen farther than others, it is because I have stood on the shoulders of giants."
- Sir Isaac Newton

Sir Isaac Newton was a physicist, mathematician, astronomer, natural philosopher, alchemist, and theologian. He is probably best known for his work with gravity, but in addition to gravity he described the three laws of motion, invented the reflecting telescope, developed a theory of color, developed a branch of mathematics, calculus, and even invented the ridges on the edges of some coins (reeds) to hinder attempts at counterfeiting. He was clearly a brilliant mind, yet even someone of his caliber recognized the need to leverage the assistance of others. He understood the simple yet profound principle that we can make greater accomplishments with the help of others than we can on our own.

Real estate investing can be a time consuming and laborious task. You need to educate yourself on investing, the markets, contract law, taxation, real estate maintenance and repair, tenant relations, financial planning, lending guidelines...the list is endless. Then you need to find and analyze a number of projects and markets to determine where you should invest and what type of investment you should make. How can a passive investor accomplish all of these tasks while still living their daily life? The only way to be a truly successful investor and still maintain time to lead a normal life is to leverage the assistance of professionals.

If you feel the need to tackle every task yourself in real estate investing, you are destined to be overworked and underpaid, and it is likely that you will become fed up with the investing process before you have the opportunity to meet your goals. You need to surround yourself with successful professionals in specialized areas of expertise...you need a "Dream Team." You need highly trained specialists in a variety of areas, such as legal (possibly multiple attorneys), accounting/taxation, financial planning, insurance, mortgage/lending, self-directed IRA specialist, 1031 specialist, and an investment/project coordinator.

Financial Planning - A financial planner is a great team member because they have the opportunity to understand your full financial picture and your future goals. They look at the "big picture" of your investing capabilities and needs. Some accountants may double as financial planners, but there are many financial planners that specialize strictly with the planning aspect and do not spread their time and abilities between two specialties. Financial planners understand the full scope of your financial capabilities and your goals, and they create a plan to help you accomplish those goals. They do not tell you specifically what to invest in (i.e. Microsoft, a condo in Miami, etc.), but they do lay out a plan for the type of investments you should consider. Ultimately, it is up to you to decide how to utilize your money. There are different types of financial planners to consider as well. Some work for institutions that sell the institution's products as investment tools, and others work independently and have the ability to consider and sell any type of investment tool. Be sure to understand the full capabilities of the financial planner you are working with.

Legal - Aligning yourself with at least one strong attorney is an absolute necessity. There are a tremendous amount of legal issues concerning real estate investing. Every project you are involved with will have detailed contracts, and these contracts can be very difficult to read and fully understand. It is always wise to have a trusted attorney review your contracts. In addition to something as straightforward as contracts, there are business structure concerns, estate planning, title searches, partnerships, closings, tax law, liabilities...the list goes on. Attorneys are a necessity. You may even consider multiple attorneys depending on what their specialties are, but at the very least one attorney you can consult with and trust can add tremendous value to your team and your investments.

Accountant/taxation - The two absolutes are death and taxes. I am not sure how to prepare for death, but I do know that having a trusted accountant that specializes in taxation is a must. The tax code and regulations are obscenely long. Title 26 (the IRS section) is TWENTY VOLUMES! It is clear that taxation is extremely complicated, and when you have multiple investments, perhaps in a number of states, with a variety of business entities, it can become very overwhelming and mistakes can be very costly. Leveraging the expertise of a tax specialist can save you tens of thousands of dollars per year, and help you avoid mistakes that could cost you large sums of money or worse. It is imperative that you have an expert that you can trust and count on to advise you with your investing decisions.

Insurance - Insurance is a must in today's investing climate. Accidents and natural disasters happen, and you must protect yourself, your family, and your assets. Insurance can be a complicated topic. There are a wide variety of types of insurance and multiple insurance strategies to consider. In addition, every investment is unique, and the insurance needs will adjust from investment to investment. You need an insurance specialist that you can consult and trust to point you in the best direction regarding your insurance needs. It could be a national company with representatives across the country, or it could be a local insurance company with the capabilities of consulting on a national basis or at least pointing you in the right direction. You need to ensure that your investments are protected.

Mortgage/Lending - I have spent time in past articles discussing the tumultuous times that the mortgage industry is currently experiencing, and these times should clearly demonstrate how complicated the mortgage industry can be. It is always wise to use other people's money to invest when you have the opportunity...this way you leverage their money to increase your investing capabilities. With that in mind, it is clear that the majority of real estate investments that you undertake will require you to obtain some form of lending, be in private or institutional lending. It is crucial that you have experts you can trust that are advising you on your lending choices. There are an amazing amount of variables to consider with regards to lending. Every investment is unique and every borrower has a unique financial picture. Your lending options can cost or save you thousands of dollars on the life of an investment. It is wise to be sure you are making the best financial decisions, and a trusted mortgage specialist can be a great guide when it is time for you to borrow money.

Self-directed IRA Specialist - Self-directed IRA's are growing in popularity and are a great tool to use to maximize tax benefits with your real estate investments. However, they can be complicated. If you plan on using a self-directed IRA for a real estate investment, it is imperative that you educate yourself on the process and select a company that specializes in self-directed IRA's that can lead you through the complicated process. The PropertyVestors team highly recommends considering the use of a self-directed IRA to maximize your investment, but you need to make sure you follow all of the guidelines for the investment. A self-directed IRA specialist can help you understand if your investment can qualify and guide you through the process.

1031 Specialist - A 1031 Exchange is taxation tool used to defer taxes when purchasing a like-kind property. Similar to utilizing a self-directed IRA, a 1031 specialist is not needed for every investor or every investment, but having a trusted consultant to turn to when you need them can save you time, money, and complications. A 1031 Exchange can be a very powerful tool, but there are strict guidelines that need to be met and the process can be complicated. It is imperative that you have a trusted source of information that you can count on.

Investment/project coordinator - Do you have time to research every real estate market? Once you find a strong market, do you have time to discuss projects with developers in those markets? Do you have the time and know how to analyze those projects? Do you have the contacts to find those projects? PropertyVestors specializes in doing just that. We research markets across the US to find the most promising markets. We leverage our group's buying power and marketing presence to gain contact with developers in the strongest markets with innovative investment strategies to capitalize on today's market trends. We do this so you do not have to. It is our goal to be your trusted source for real estate investment projects and strategies. We want you to leverage our experience and expertise so you can maximize your investing potential.

PropertyVestors is an investment group of CEOs, entrepreneurs and savvy real estate investors that are taking active steps to maximize their profits, while minimizing their risk by creating a diversified real estate portfolio. Investors are able to easily apply diversity in real estate geographically and by asset class through its various investment strategies and types of inventory.

Furthermore, PropertyVestors enables investors to capitalize on different market conditions. The strategies include conservative, private lending options; moderate with preconstruction syndication; and aggressive with partner deals in emerging markets, coastal regions and waterfront properties. With PropertyVestors, you can take advantage of a new investment model and innovative real estate strategies. PropertyVestors' real estate strategies and ongoing education can position you build your net wealth, while minimizing risk.

For general information about PropertyVestors or its offerings, email invest@propertyvestors.com or call 1-877-90-BUYER.

About the Author

Real Estate Investment Group

Sarah Barry is the founder of PropertyVestors (www.propertyvestors.com). PropertyVestors is a successful real estate investment group that creates above-market returns at below-market risk. Access to PropertyVestors' three smart real estate strategies enables investors to achieve double- to triple-digit returns on their real estate investments.