In a previous post, I laid out the outline for my Business Plan. The last section of my plan calls for an overview of the team I need to put together before I start doing deals. Because of my short-term desire to define and create my business structures and ensure that I’m prepared to start looking for deals, I wanted to get my list of team members together early, so that I could start looking for them, interviewing them, and getting them on-board with my plan.
Here’s what the Business Plan calls for in terms of building a team:
LISH PROPERTIES BUSINESS PLAN
Investment Team
It is clear that in real estate investment, a key differentiator – and often the difference between success and failure – is the ability to put together a great support team. Using networking contacts, referrals, and detailed research, the company intends to put together a great team prior to making a first investment.
At very minimum, the following team members will be identified and consulted with prior to making a first purchase:
Key Team
Real Estate Attorney
- To define and create an initial business structure and entity for the company
- To help define and create partnership agreements for each investment vehicle
- To create contracts to control property during due diligence
Certified Public Accountant
- To define and create an initial business structure and entity for the company
- To help create methodologies for tracking revenue and expenses
- To help identify tax strategies
- To complete annual taxes
Real Estate Agent
- To provide access to available properties (and MLS, if necessary)
- To provide insight into the local markets
- To identify and analyze available investments
Property Management
- To support due diligence process during acquisition phase
- To provide day-to-day management of investment properties (where desired)
Due Diligence & Acquisition
Property Management
- To support due diligence process during acquisition phase
Property Inspector
- To provide inspection services prior to purchase
- To help define cost of repairs and improvements
- To make strategic recommendations on improvements or repairs
Appraiser
- To help define comps and reasonable market value when dealing with non-typical properties or non-typical investments
Mortgage Broker or Lender
- For all financing needs and future finance planning
Title Company
- To clear title for acquired properties
Insurance Agent
- To provide insurance on investments
- To provide recommendations on insurance strategy for investments and tenants
Improvements & Repairs
The following maintenance and repair companies/people should be identified prior to making a purchase:
- General Contractor
- Landscaping
- Handyman
- Plumber
- Electrician
- Cleaning Services
- Carpenter
Hey, I am really enjoying your site and reading about your trials and tribulations as well as your victories and successes that you and your wife have encountered over the last 3 years. I just have a quick question about how you would utilize a property management company to help you support you during your due diligence process. I recognize that they would be key to sheding light on certain areas but what specifically would you ask them while analyzing a property?
Hey Dennis –
Wow, I’ve forgotten about some of these first posts! Makes me realize how little I knew back then (of course, I’ll probably realize the same thing when I look back on this discussion three years from now :))…
In retrospect, this was written when I planned to be spending most of my time investing in commercial real estate (apartments). With commercial, and especially apartments, property management companies are a wealth of information about area demographics, market rents, turnover time/costs, etc. This isn’t nearly as true on the single family house side of things, and for that reason, I haven’t really dealt with any property management companies during my time in this business.
Great web site. Im really doing the same thing you are doing. I fix up houses to flip and purchase mulitfamily for long term holds. I am a GC so keeping projectes on budget has been our strength. Im going to be running into a cash flow problem in the next year as the banks want there 20% down.. Whats your take on generating money. Im looking at some 15 year fixed no call for the multi family holds. I’m also looking for short term High Yeilds on the flips. Just trying to make the right contacts and plugging in the right numbers to make them attractive enough to bring in the cash i need.
Hi Chuck,
These days, I try to focus on private lenders (people I know who have cash in their retirement plans) — they’ll often lend at rates in the 8-12% range for short periods of time (about 12 months). This is what I’m using for many of my rehabs.
hey j
just getting familiar w your site and really enjoy what you’ve put together. helps me better plan how I will document and track my own progress in rei!
after reading some of your older posts (such as this), I was beginning to wonder how much of it was relevant or used in what you have learned and do/use today! that said, I guess writing your books gives you the opportunity to update some of these posts as you touch upon relevant points and write them into your books.
thx for sharing your journey…it’s been educational and inspirational.