Realty Investment Advisors

How to Choose the Best Realty Investment Advisors?

Investing in real estate does not necessarily require you to be a real estate expert. However, if you’re going to be involved in realty investment in Dallas for the long term – and you should – it pays to have some expert advice and sound recommendations. Even if you are only interested in investing in REITs or real estate investment club offerings, you should know about the markets you’re investing in, or you should have someone on your team who does.

As an investor, you’ve no doubt enlisted the aid of savvy advisors, accountants, and other experts to help you make the best decisions for your portfolio, but when it comes to adding new properties and managing your real estate investment portfolio, it really pays to speak with someone who is specifically experienced with realty. All too often, accountants and other advisors will not treat real estate the same way they do other passive and active portfolio assets, which is why it makes sense to look for realty investment advisors who know what to do with your residential and/or commercial assets to ensure the most growth for your portfolio.

So, how can you find an individual or team of realty investment advisors to meet your needs as you delve deeper into the world of realty investment in Dallas? Follow these tips and ask a few important questions, and you’ll be on the right track.

Network with Other Investors

First of all, if you want to find the best advisors, you’ll want to look to the most successful investors. Go to networking events and/or join a good real estate investing club, and get to know some of the more successful real estate investors in your area. As you get to know and build relationships with these people, don’t be afraid to ask them about who they have managing their funds and who they trust with real estate investment advice. You’ll get the best references from the best investors.

Of course, there are multiple quality advisors and asset managers out there, and you won’t necessarily want to go with the first recommendation. So, as you interview potential advisors, don’t hesitate to ask these questions.

Will You Be Managing My Investments Personally?

A true asset manager will have access to your capital through a discretionary account and won’t need to get approval from you on each and every trade. Some investment advisors claim to be asset managers, but they really just collect a fee from you and then hire someone else to do the actual transfers and legwork that a real asset manager would do.

How Much Experience Do You Have with Real Estate Investments?

Ask them about how they manage real estate assets and if they have a different strategy for managing shares in REITs versus held rental properties. This is a big giveaway. If your potential advisor doesn’t have a compelling answer for this, walk away because they do not have the industry experience you need to manage and maximize your real estate investment portfolio.

While you’re on the subject, go ahead and ask for their Form ADV, which will tell you a lot about their track record as an asset manager. They should also have a risk-adjusted performance record that they can show you, as well, to give you a much better idea of how successful they’ve been with their past clients.

Are You Bound by Law to Always Act in My Best Interest?

Finally, this may actually be the most important question of all as you select an asset manager for your realty investment in Dallas. Some “advisors” will say things like, “You’re the boss!” Then they won’t hesitate to carry out orders that you make that may actually be bad for your portfolio.

To avoid this, ask your potential advisor or asset manager if they are willing to sign a contract that legally binds them to acting in your best interest at all times. This contract will protect both you and them by preventing them from making transactions or giving advice that is bad for your portfolio.

With these tips and questions, you should be armed with the knowledge you need to find a great financial advisor for your real estate investments in Dallas.