Whether you are experienced or just starting your career in property investment, one of the most invaluable things you will ever come across are property contacts. Slowly but surely you will begin to build a list of those you can call on at short notice for advice, finance and other services. There may be times when you need to be at the end of the phone for them but this relationship could be the best investment you ever made.
We know that estate agents have preferred investment customers who may have access to properties coming to the market before they are promoted more widely. If an estate agent sees you as a regular investor then they will make you aware of properties which fit with your criteria. Obviously they will earn commission on any sales and some investors will also pay commission on any resales. So, while it is good to have estate contacts to acquire assets the same contacts could also be priceless when looking to sell the same asset.
Mortgage brokers, banks, insurance companies, building societies and niche lenders, the more contacts you have in these areas the better for you. There is an argument to suggest that with tax breaks (even if they are being reduced) it is better to acquire property with a degree of debt. As a consequence, if you have trusted financial contacts you can call at relatively short notice for funding this could be the difference between closing a deal and missing out. As you already have a relationship with the financial contacts much of the initial relationship paperwork will already have been done. A win-win as they say!
Whether looking to lay a new floor, renew the electrics, repair the roof, decorate or do the garden, as just a few examples, it pays to have people you can trust. The beauty is that the stronger the trust the more chance they will put your work before that of other customers. After all, they know that further down the line you’ll come back to them time and time again. There is also the trust factor in this scenario, if a contractor does work for you and it doesn’t work out, you don’t go back. So, slowly but surely you will build up a very small core of trusted parties you can call on time and time again.
Concentrate on business
If you have somebody keeping an eye out for properties, financial contacts and trustworthy contractors, this allows you to concentrate on running your property business. You can also do your own work on identifying potential investments as well as having others working for you as well. Even though many people have huge egos which do not allow them to let others get too involved, this is crazy. Stick to what you know, bringing parties to do what you don’t know and everyone is a winner.
Trust, dependency and reliability are three factors that should feature heavily when you are looking to build up your property investment team. It may take some time but planting the seeds of a potential long-term relationship can prove invaluable. Water the seeds with work every now and again, talk to them, keep them onside and the relationship will only grow.