Building your Property Power Team
Everyone watches in awe (with more than a slight tinge of envy) as Mpumi grows her property portfolio from scratch to SPECTACULAR in just a few years.
How DOES she do it? Seriously though. She has a full-time job, two young kids AND a husband. Is she some kind of Superwoman?!
Mpumi is smart. Mpumi has a secret weapon. A POWER TEAM!
Mpumi knows that one of the best kept secrets to successful property investing is having a strong team of people around you who can help you achieve far more than you could possibly do on your own, commonly known as a Power Team.
Mpumi built her Power Team before she even started looking for investment opportunities. She knows that it's no good finding an amazing deal and then missing out on it, just because you can't move quickly enough.
Go Mpmui Go!
If you are thinking well that’s cool for Mpumi, but how do I start? Who Should Be In my Power Team? keep on reading…
Initially, you will start with a core power team consisting of the essential people you need to make deals happen. With time, you will probably develop an extended power team who will help you systematise the process.
Your Core Power Team
This will include a property specialist tax accountant, a bond originator and solicitors. Let’s consider each of these in turn.
Your Property Specialist Tax Accountant
When it comes to property investing, most accountants will understand the basics but may not have the specialist property tax knowledge required. Everyone is different and so you need to get specialist advice tailored to your specific requirements and needs.
Your property specialist tax accountant will be able to help advise you in the setup of your property business(s). They should also be consulted on all major transactions such as disposal of property or structuring of joint ventures, etc. The correct advice could save you a fortune, so it is well worth paying for some quality personal advice to minimise the amount of tax you pay.
My criteria for selecting a property tax accountant are as follows. They need to be:
A property tax specialist
A property investor themselves
Your Bond Originator
Probably one of the most important people in your property power team, your bond originator is your access to the MONEY honey! Your bond originator needs to understand explicitly what you are doing. Don’t assume that all bond originators are the same!
My criteria for selecting a bond originator is as follows. They need to be:
Dealing regularly with bonds, access bonds and refinancing of properties
Respond quickly to your needs
Invest in property themselves
The best way to find a good bond originator, as with most members of your power team, is through personal recommendation from other investors who use their services.
You will need two different solicitors to complete your property purchase. One solicitor will represent you in the purchase and a second, separate solicitor will represent the seller in the sale. If you have applied for a bond in order to purchase the property, the bank will appoint the solicitor for the purchase. It is important to note that you can request to use your own solicitor. This allows you to leverage your good working relationship and ensure the transaction happens in the required time, which benefits everyone.
My criteria for selecting solicitors are as follows. They need to be:
Friendly and contactable with a good response rate
Proactive, rather than reactive which is what most solicitors are
Able to carry out all transactions over the phone and by email for speed
Able to work with the other solicitors in an efficient manner
Cost-effective for the service they provide
Now that we have considered core people you need in your property power team, you may want to think about the gaps in your current team. Who else do you need in your team? How are you going to find them?
Tune in next week to discover the answer to all these questions, and more!