WHY SHOULD YOU HAVE A TEAM IN REAL ESTATE?
The market is not the most important factor, nor is the deal, nor is the cap rate or anything else. The most important aspect of real estate, and in particular apartment syndications, is the ability to execute the business plan. Because, if you can’t execute the business plan, then the best deal and the best market really means nothing.
We said that one way for you to build up your ability to execute the business plan is obviously going to be your education and experience, but the most important piece is going to be your team… Because, when you are first starting out, you’re not going to know how to execute the business plan properly, and that’s kind of the catch-22 because the best way to learn how to do it is to actually do it, but you can’t really do it until you’ve done it before. So the way to get around that is to surround yourself with an incredible, experienced team who has experience executing the business plan in the past successfully.
Who Are Your Team Members?
The four core team members are going be a business partner, a mentor, a property management company, and a real estate broker or brokers. Those are going be the four most important members of your team.
How to Find Syndication Team Members
Through Your Thought Leadership Platform
the importance of building a brand as an apartment syndicator… And one of those benefits was the networking capabilities of having an interview-based thought leadership platform.
At Real Estate Meetups
BiggerPockets
Through a Basic Web Search (I use Google)
Syndication Team Referrals
The Process of Hiring Your Syndication Team
Make of Note of What You’re Lacking
Find People Who Fulfill Specific Roles on Your Syndication Team
What do I mean, What exactly do you need on the general partnership side for the apartment syndication? Because you’ve got your passive investors who are investing in the deal and you’ve got your outside third-party team members who are finding deals for you, they’re managing the deals afterwards, but at the end of the day, apartment syndication is a business and you’re going to need to have a team of people who are actually fulfilling the roles of that business.
Determine Compensation
Qualifying a Potential Partner for Your Syndication Team
like straight-up 50/50, breaking this apart 50/50, or when you are bringing on someone for a particular duty, like investor relations or as a sponsor.
Take Their Track Record Into Account
Find Out How Much Time They Can Devote to Your Partnership
Consider if They Have Complementary Skills to You
Discuss Your Goals
Reaching Out to Potential Partners and Syndication Team Members
Have Experience
Add Value
Connect to Them on a Personal Level
Your Syndication Team Mentor
The mentor is going to be a paid consultant, so I’m not talking about someone who is like a fatherly figure to you who you aren’t paying; this is someone you’re actually paying. A lot of people have different opinions on whether or not you need a mentor, and I’m not going to say whether you do or don’t need a mentor. Instead, I’m going to talk about what to expect or what not to expect from a mentor, and when you are ready to actually hire a mentor… And then the decision is ultimately up to you.
What to Expect From Your Mentor
Whether you need a mentor really comes down to your expectations of what a mentor will do for you, as well as why you’ll want to hire a mentor. The four things that you should expect out of a mentor is:
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An active, successful apartment syndicator; they’re currently doing it, they’ve been doing it in the past, they plan on doing it in the future, and they’ve been successful.
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You should expect a step-by-step system, as well as the personalized help for you to navigate the grey areas. They should have a system for you to plug into to replicate their success, but you actually have to do the work… And things that aren’t covered by that system, you should be able to talk to them about those grey areas.
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A mentor is an ally that you can call on selfishly about anything. Since you’re paying them, you don’t really have to worry about asking them about their day or how things are going for them, because you’re paying them to just talk about yourself.
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And then, four, you should expect connections. Again, since they’re active and since they’re an apartment syndicator, they should have connections to the people that you need to help you create your team.
What You Shouldn’t Expect
Now, the two things that you shouldn’t expect… Number one is a knight in shining armor. Don’t expect to hire a mentor and then magically have a multi-million-dollar apartment syndication business in a couple of years. Expect to go in there and actually have to do the work yourself. They’re just going to give you a leg up. And, lastly, don’t expect that done-for-you system. Again, you’re going to be doing the work yourself; you don’t want them to do everything for you. Number one, they probably won’t be doing anything for you, and two, even if they did, you’re highly dependent on them and they’re never going to be able to break off on your own.
What Should a Syndication Team Mentor Do?
Now, what does a mentor actually do for you, besides those four things to expect… 1) Providing you with a step-by-step system; helping you navigate the grey areas. 2) Being an ally to call upon. 3) Connections. 4) Them being the active, successful apartment syndicator…
You will also have the ability to leverage their credibility when talking to team members and to potentially passive investors, as well… Because you’re going to say, “Hey, on my team there’s a board member who has done multiple millions of dollars in deals; they’ve been doing it for 20 years”, and then, also, you’ve got the potential for alignment of interests. Just the fact that they’re being on your team, you can leverage their credibility, but they also might have some sort of stake in the deal, whether it’s a sweat equity stake of actually working on the deal or they have their own money in the deal. Those are the things that a mentor could do for you.
I’d like to give a special thanks to:
1st my family. They are my everything, and the biggest part of my why.
2nd my residents. Thank you for being awesome, paying rent on time and being a part of our community.
3rd to all my Business Partners. Including our Asset Managers. Guys, I’m looking forward to closing on this 130 Unit Apartment we’re working on.
4th To my Executive Assistants. Especially you Elle. You guys are so awesome at finding these Off-Market Deals. In addition to allowing us to buy, sell, and wholesale smaller Real Estate Deals in between us buying larger Commercial Apartments.
5th To our Awesome Rock Star Property Managers Ron and Keven In addition to all the staff. Thank you guys for all you’ve done.
6th To our Mortgage Brokers. Especial you Dennis.
7th Wouldn’t be able to add value without our top contractors over at Cohen Construction. Thank you Dan.
8th To both of our Accountants and book keepers at Roman CPA. And Brandon Hall.
9th To our Closing Attorney Andrew Hoek.
10th To our SEC Attorney Mauricio Rauld Who has the Rising Star Award for top SEC Attorney in the Country.
11th To my Mentor Vinney Smiles Chopra, and his partner Jon Roosen! Vinney even though we meet on a weekly basis, I still learn something new every time I talk to you. It’s truly an honer to been in the High Net Worth Mastermind. Thank you both for everything.
12th To all our Real Estate Brokers. Thank you for all the hard work to bring us these deals. We also appreciate getting first dibs on the pocket listings.
13th To all our awesome Investors!!! Thank you guys for believing in us for all these years.
Especially those that have Invested with us. You guys rock!
Lastly both myself, my Business Partners, and some sellers we know will each be selling some of our smaller properties, to trade for Larger Commercial Apartments.
So keep your eyes open for opportunities.
TEAM WORK MAKES THE DREAM WORK
“Here at Income Property Solution we buy commercial real estate in Emerging Markets. They produce
good cash flows with a strong back-end.”
Have a great day!
Demetrius Brown, & Team
IncomePropertySolution.com
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