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
{ 2 comments… read them below or add one }
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.