Before You Purchase MN Investment Property

December 13, 2007

Plenty of books exist that try to teach the potential investor that there is nothing magical about investing, and that you can understand how to do it.

Robert Kiyosaki’s Rich Dad book series ( written by Robert Kiyosaki) represents many of those books. Though he started the series, by introducing the concept in “Rich Dad, Poor Dad,” that wealth is influenced by a person’s philosophy on money, he is not the only writer working on his books. He introduces the reader to the concept of advisers, or specialists, that distribute their expertise with regard to investment properties in Minnesota with the investor. One of his advisers is Ken McElroy. Kiyosaki appreciates Ken McElroy’s expertise so much, that he invited McElroy to work write his series.

McElroy points out (in “The ABC’s of Real Estate Investing”) the complete necessity of employing specialists to help you with your investment properties. There are quite a few reasons to hire experts to help, but the two most important ones are knowledge & time. Those two reasons feed into each.

For example, though the investor must have a basic knowledge of construction, law, financing, accounting, the market, etc., there is no way she will ever be able to become an expert in every one of these fields. He needs to become a specialist in the markets that interest him. That alone will use up most of his/her time and energy.

Therefore, if he attempts to purchase a property using this basic knowledge of construction, for example, he will be more likely to make better decisions than the typical citizen who is trying to do the same. However, there’s a significant probability that she will fail to notice something that a professional building engineer will spot right off. bringing your expert along on his\her building inspection is as vital as an amateur adventurer having a tour guide with him on a trek through the jungle.

Now, consider this. Even if an investor were able to establish expertise in all these areas, you still probably shouldn’t spend all your effort managing them on your own. When there are accounting issues to deal with and legal issues to deal with, there just isn’t enough time in the day to manage it all. The investor ought to be out making contacts and staying up with the markets. It’s more cost-efficient for you to just pay the expert to do it, so you can go out and do what you do best. (Or at least what you are endeavoring to learn).

And all this is before the investor purchases the property.

Once you buy a Minnesota investment property, you will have many new “problems” to solve. There are as many things to think about after purchase as before. That is the reason the savvy investor has a team ready with professional advice for every step along the way. This is the step in which an investment property consultant’s insight becomes invaluable.