SS284: How to Build a Multifamily Investment Team

SS284: How to Build a Multifamily Investment Team

Building a high-performing multifamily investment team is the difference between owning a job and owning an asset. In this episode, Charles discusses how to assemble an apartment investment team.

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Talking Points:

  • No matter how small or large your apartment portfolio is, there are certain people that every multifamily investor is going to need on their team.
  • When I began investing in multifamily, I self-managed my properties, but as I grew, I hired a property manager, along with other team members, to offload tasks as we purchased properties, and that is what we are going to discuss today.
  • The foundation of your team is going to include:
    • Real estate brokers and agents who specialize in multifamily properties, along with a residential agent who can send any multifamily deals they find on the MLS to you.
    • Lenders and mortgage brokers. I would search out small local banks and credit unions that lend on multifamily properties, and open accounts there to start building relationships. Also, find a broker who regularly works with multiple investors.
    • Real estate attorney. They will be reviewing contracts for you, closings, entity structuring, and evictions. If you ever need another attorney, such as a litigation attorney, they can refer you.
    • CPA. Having an accountant with investment real estate experience from the beginning will be very helpful for tax planning and tax return preparation.
    • Property manager. If you are hiring a property manager from the beginning, or if you start growing, you will need to hire one at some point. They will be your most important team member. You can add and remove some of your foundational team members with relative ease, but changing your property manager will be a very in-depth process.
    • Bookkeeper. Bookkeepers are inexpensive, and I would hire one during your first year as a real estate investor, especially if you do not have a property manager.
  • The next level of your team is going to be important once you’re actively buying properties.
    • Contractors and Handymen. These will be among your most important team members, right up there with the property manager. If you are self-managing, having a smart, capable handyman will make your life as a landlord a lot easier. Your contractors will also be available during due diligence and after you purchase the property. This includes contractors for: inspections, HVAC, plumbing, construction, and renovations.
    • Insurance Brokers. Having a capable, independent insurance agent who can offer insurance from many carriers is the best way to handle your property insurance needs as a real estate investor.
    • Virtual Assistants. Consistently audit your daily tasks and see what you can offload to a virtual assistant. Little by little, you can start saving hours each week by passing these tasks off.
  • Your level three team is required when you want to turn your business into a true real estate investment firm. 
    • Asset manager. Oversees your property managers and regularly visits your properties.
    • Investor relations and capital raising. If you are syndicating deals, they will help raise capital and manage your investments.
    • Marketing. Putting together a marketing plan and team for finding investors and finding deals.
    • Underwriter. Reviewing deals, speaking with brokers, and sourcing new opportunities.
    • Admin. For general office tasks and transaction coordination.
  • When to hire.
    • When we have hired for our real estate or payment processing business, it has been when we needed a role filled, usually bringing on the person part-time first, when possible, before transitioning to a more permanent role.
    • Find people who already have experience in working with real estate investors. If it is multifamily experience, that is even better.
    • Like screening tenants, you don’t want to hire right away because you have to. You want to wait and find the right person for the role, even if it takes longer.
  • Multifamily investing is a team sport, and as you grow, you are going to need more people on your team. Having specialized team members working with you means you do not need to be an expert in these parts of your business, freeing up your time to find and buy more properties.
  • If you would like to learn more about how to build a real estate team, check out episode SS44.

Transcript:

Charles:
I’ve been a multifamily investor since 2006, and in that time, one of the main things I have realized is that multifamily investing is not a solo game. Having a strong team helps with everything from managing day-to-day activities to acquiring new properties. Welcome to Strategy Saturday! I’m Charles Carillo, and today, we’re discussing how to build a multifamily investment team the right way. Let’s get started. No matter how small or large your apartment portfolio is, there are certain people that every multifamily investor is gonna need on their team. When I began investing in multifamily, I self-managed my properties, but as I grew, I hired a property manager along with other team members to offload tasks as we purchased properties, and that is what we’re gonna be discussing today. The foundation of your team is going to include real estate brokers and agents who specialize in multifamily properties along with a residential agent who can send any multifamily deals they find on the MLS deal, lenders and mortgage brokers.

Charles:
So I would search up small local banks and credit unions that lend on multifamily properties and open accounts there to start building relationships. Also, find a broker who regularly works with multiple investors. Next is a real estate attorney, and they will be reviewing contracts for you, handling closings, entity structuring, and evictions. If you ever need another attorney, such as a litigation attorney, they can refer you. CPA, have an accountant with investment real estate experience from the beginning, will be very helpful for tax planning and for tax return preparation. Property manager, if you’re hiring a property manager from the beginning, or if you start growing, you’ll need to hire one at some point, and they’ll be your most important team member. You can add or remove some of your foundational team members with relative ease, but changing your property manager will be a very in-depth process.

Charles:
Bookkeeper. Bookkeepers are inexpensive, and hire one during your first year as a real estate investor, especially if you do not have a property manager, because your property manager’s gonna handling a lot of bookkeeping for you. If you’re self-managing, make sure you hire a bookkeeper from the beginning. The next level of your team is going to be important once you’re actively buying properties, contractors and handymen. These will be among your most important team members right up there with property manager. If you’re self-managing, having a smart, capable handyman will make your life as a landlord a lot easier. Your contractors will also be available during due diligence and after you purchase the property. This includes contractors for inspections, HVAC, plumbing, construction, and renovations. Insurance brokers, having a capable, independent insurance agent who can offer insurance from many carriers is the best way to handle your property insurance needs as a real estate investor.

Charles:
Virtual assistants, consistently audit your daily tasks, and see what you can offload to a virtual assistant. Little by little, you can start saving hours each week by passing these tasks off. Your level three team is required when and if you wanna turn your business into a true real estate investment firm. This is gonna include an asset manager who oversees your property managers and regularly visits your properties, investor relations and capital raising. If you’re syndicating deals, they will help raise capital and manage your investments. Marketing, putting together a marketing plan and team for finding investors and finding deals. Underwriter, reviewing deals, speaking with brokers, and sourcing new opportunities. Admin for general office tasks and transaction coordination. When to hire. When we have hired for our real estate or payment processing business, it has been when we needed a role filled, usually bringing on a person part-time first when possible before transitioning to a more permanent role.

Charles:
And when you bring them on, we usually would do like a 90-days test type situation. So see if they fit the role and then make the decision whether they’re staying after 90 days. Find people who already have experience in working with real estate investors. If it is multifamily experience, that is even better. Like screening tenants, you don’t wanna hire right away because you have to. You wanna wait and find the right person for the role, even if it takes longer. Multifamily investing is a team sport. And as you grow, you’re going to need more people on your team. Having specialized team members working with you means you do not need to be an expert in these parts of your business, freeing up your time to find and buy more properties. If you’d like to learn more about how to build a real estate team, check out episode SS44.

Charles:
That’s SS44. I hope you enjoyed. Please remember to rate, review, subscribe, submit comments and potential show topics at globalinvestorspodcast.com. If you’re interested in actively investing in real estate, please check out our mentoring programs at syndicationsuperstars.com. That is syndicationsuperstars.com. Look forward to another episode next week. See you then.

Speaker 2:
Have you always wanted to invest in real estate but didn’t have the time, didn’t know where to find the deals, couldn’t get the funding, and didn’t want tenants calling you? Since 2006, I’ve been buying income-producing properties in great locations that provide us with consistent passive income while we wait for appreciation in the future and take advantage of tax laws while we’re waiting. And unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out investwithharborside.com. If you like the idea of investing in real estate, if you like the idea of passive income, partner with us at investwithharborside.com. That’s investwithharborside.com.

 

Links Mentioned In The Episode:

  • SS44: How Do You Build A Real Estate Team?

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