I have just finished reading about how to recruit the different professionals that real estate investors should have on their team: accountant, attorney, finance professional, title agent, insurance agent, property manager, real estate agent, mentor, and partners.
To my understanding, it is most important that the professional is knowledgeable in their field, their personality jives with yours, and that they are licensed. Bonus if they already own investment properties. For the MHP space, is it better if these professionals are from the same area (city/state) where the deal is being done or is it better if they work with deals across the nation? Is it different for each profession? My impression is that it depends on the focus area of the investor - if investing only in NC, better to have NC based professionals, if working nationally better to have folks that operate in all states.
As you stated, it depends on the preference and needs of the investor. Here’s my take on the roles you mentioned:
Attorney - depending on the type, you may use them once or ongoing. You will want an evictions attorney in the county of your property. You don’t have to jive with this guy. In fact one of our attorneys in a small market required us to pay a $95 consultation fee just to speak to him. After that, we simply email cases and never speak. If you are larger and have general counsel, then you want to jive. Other attorneys (contracts, acquisitions, environmental, municipal, litigation) are brought in as needed and the most important considerations are 1) being licensed in the jurisdiction and 2) having expertise in the matter.
Financial advisor - good to have good relationship as this is ongoing. Mine is based 3 states away.
Title agent - no need to Jive. You may meet him for 1 hour in your lifetime. Needs to be licensed in the state of the property.
Insurance agent - often licensed by state, so go to somebody who handles your area. No particular need to jive with the guy.
Property manager - take what you can find depending on your talent pool. Jiving is good.
Real Estate Agent - depends. Some agents are representing the seller and you are the buyer. Thus, if you want to buy the property, you are forced to deal with the agent no matter where he lives or if you jive or not.
Mentor - you should have a good relationship to make this work an being local is helpful but not necessary.
Partners - good relationship is helpful but depending on the type of partner location is not important.
Thank you for the input, all super helpful. To sum it up, key considerations in general are:
Licensed in the jurisdiction of interest
Have expertise in the field
Personality is compatible with yours
And this varies according to the role.
Granted that this is not legal advice and is intended for discussion purposes only. Any readers, please consult with your attorney as to your specific needs and circumstances. That being said:
So, let’s say in theory you are based in NC and interested in purchasing an MHP out of state. If I understand the above correctly, I would want to hold on to my mentor and financial advisor, maybe partners. In the state of interest, I would want to look for attorneys in the fields of interest, a title agent, and an insurance agent. Then on the ground would interact with the real estate agent if necessary, and try to find a property manager I would get along with. Sound good?