Your Real Estate Team
Real Estate Broker: A good broker should be the main point of contact in your team. They need to know market trends and have a solid understanding of the continual changes in contracts, lending, disclosures, and types of inspections. When selling, your agent should have a current track record of success and use the latest tools and technology. To market my listings, I use HD video tours, a professional photographer and a listing syndicator which ensures that my listings are on nearly every website that deals in real estate. A good broker will help you sell quicker and identify good deals when buying. Real estate brokers charge a commission when selling but typically there is no fee when you buy a property.
Lender: If you want to use leverage you need a lender or banker that can give you access to all the different lending programs. The speed at which these loan programs change is unbelievable so it is imperative that your lender be up to date on a weekly basis. Lender charge “points” which is a percentage of the loan amount.
Real Estate Attorney: A good attorney can help with contracts but also with the more difficult processes like easements, partnerships, LLC, syndicates, tenants in common and more. The more complicated and large the deals get the more you’ll need a great attorney. Attorneys are paid hourly unless they are on a retainer.
CPA: Since there are huge tax benefits to owning real estate having a CPA that can help you take advantage of all of them will increase your ROI. CPA’s typically charge a flat fee or hourly rate.
Title Company: These companies insure the title to real estate and offer escrow services. Escrow services are typically a flat fee and insurance is based on the value of the property that is being insured.
Property Management: Many investors love the idea of real estate but don’t want to deal with calls from tenants and leasing properties. This is where a property manager can take a lot of the headaches out of owning real estate. Managers typically get paid a percentage of gross rents.
Contractor: If you plan to buy a value add property you will need a good contractor to give you a realistic expectation on how much money and time it will take to get the property rentable. This knowledge is essential if you want to compare a fixer to a well maintained investment.
To download and view the entire 2014 Portland Real Estate Market Report, click here.