Real Estate Investing - Minnesota

When you start putting your team together, remember that you are starting a business and your team members, although you are not "paying" them a salary, they are your employees. Be sure that your team members are people that you would hire and are comfortable working with.

Some of the professionals you will want on your team include: Accountants, Attorneys, Realtors, Loan Officers, Handyman, Landscaper, Appraiser, Title Company, Property Manager, Rental Service Providers.

You should have at least one of each of all of the professionals listed above. You can have more than one of each.

For example, if you only have one Realtor on your team, or if you sign an exclusive agreement with one Realtor, you could end up drastically limiting yourself. If another Realtor#1 brings you a deal, and you are under exclusive contract with Realtor#2, you could end up paying Realtor#2 for doing nothing. This applies specifically for purchasing properties, if you are selling a property, use one specific Realtor. You do however, want to have one "go-to" Realtor, but do not limit yourself. The same applies to most of the professionals listed above, all with different caveats.

Now, you may have a partner on yours team. It is important to document the relationship with your partner and for each partner to know their roles. For example, Partner#1 has no money to invest but has the time to manage the property, do the yardwork, handle the tenants, etc. and Partner#2 has the money to invest. Each Partner has the right to know what is going on with the Property, and where and how the money is being spent. Everything should always be documented, which helps avoid conflict and keeps everyone happy.