If you’ll think back to our article on the first commandment of real estate investment, you’ll remember that Mark Twain’s self-education failed him when it came time for application. While we hope this doesn’t happen to you, it is certainly a possibility if you’re new to investing. The great news is this—enlisting the help of a professional is easy and can make all the difference.
A history of experience, daily research, and a network of individuals operating within your desired market are things only a professional investment counselor can provide, and will make your experience better (and ultimately more profitable).
Perhaps you’ve heard the story of the “Spruce Goose”, an airplane designed by the Hughes Aircraft company in 1947, flown only once. Thanks to wartime restrictions on aluminum, the plane consisted (not of Spruce as it is so named) but of birch and had the longest wingspan of any aircraft before or since. Designed to help in war efforts, the plane was capable of holding a tank.
But it was big. And slow. And expensive, lacking in stability, heavy and made of wood. After the initial flight, the plane was sent to live in a warehouse where it was maintained by a large crew of workers sworn to secrecy at a cost that was undoubtedly outrageous.
All of this to say that it looked good on paper and failed in practice. The same is true in real estate investment. A property can be made to look great when you’re staring at that bright white printer paper but could ultimately be a bad investment. Professional investment counselors know things that you might not—a seller known for shady dealings, a neighborhood whose crime rates are on the rise, the nearby building being a waste treatment plant—and can help make these major life decisions because they’re dealing in this very specific market every day.
To choose an advisor, look for someone willing to go the distance—an investment advisor who is really ready to commit, someone who won’t just leave you for the next shiny object that wanders past. Focus on finding someone who practices what they preach.
Think of it this way—you wouldn’t trust a writer who is against publishing or a veterinarian who hates animals. Similarly, an investment advisor who isn’t investing in the area is unlikely to provide you with the best advice.
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The Jason Hartman Team