A team is critical to the success of your foreclosure investing business. Even if you\'re working by yourself and you say, \I can\'t build a team. I can\'t even afford to pay my electric bill right now!\--you\'ll still need to have professionals who can help you!
You need a team: people you trust to help with your business. This article is about one of the types of teams you will need as a foreclosure investor: the external team.
Mortgage Broker--If you have to interview 20 brokers to get three you can count on, then do that. A mortgage broker is important because you can refer your distressed homeowner to them. This is good for two reasons:
- Maybe your mortgage broker can pull a rabbit out of their hat and save the distressed homeowner\'s home.
- If the mortgage broker tells your client that it can\'t be done it gives you credibility and smooths the path for you to work a deal with your client.
Title Company--A competent title company will allow you to pull O&E\'s (Owners and Encumbrances) and will do title work for you. A good title company will make a huge difference in the success of your foreclosure investing business. Try one title company. If they don\'t work, try another.
Lawyer--In this business, it\'s usually not a matter of if you\'re going to get sued, but when you\'re going to get sued. You need somebody who\'s going to protect you from getting hauled into court. Make sure your real estate lawyer has experience with foreclosures.
Tax accountant--If your accountant has real estate experience they can save you thousands of dollars. Find somebody who comes recommended. My suggestion is not to use the accountants from your local real estate club. Generally, they are overwhelmed with people asking them a lot of questions. I would look around and use other contacts to find an accountant that has a focus on real estate.
Real estate agent--I have a real estate agent who I\'ve done business with for 13 years. We\'ve probably done 20 transactions.
A good real estate agent will help you:
- Pull comps--In the beginning of my foreclosure career, I would have my real estate agent pull my comps (comparable sales) for me. So when I had a house that was possibly of interest to me, I could see what the house was worth. And that would give me an idea of whether or not I was going to work the deal.
- Get MLS access--The second thing that the real estate agent has done has allowed me access to the multiple listing service of my particular town. Access to the multiple listing services is critical for someone in the foreclosure business. Instead of having to call my real estate agent and ask him all the time, I offset his cost for his MLS service, and I have direct access to the MLS, without being a real estate agent. This is a critical juncture in your business. Be creative and do what you can to get it.
About the Author:
Paul Wells has been investing in foreclosures full-time for more than 5 years. To ask Paul a question, go to his Foreclosure Investing blog here: http://www.AskPaulWells.com
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