11 Players You Need on Your Multifamily TeamPaul Winterowd
As any owner of a professional sports franchise could tell you: there’s value in a team. Beyond the support and camaraderie that exists within a team, there is also inherent value in a system that uses players with different strengths to achieve one common goal.
A skilled team with an effective coach can create winning opportunities through synergy. Synergy and success go hand-in-hand when everyone’s a team player. The lone wolf—the person who only wants to play “hero ball”—creates an achievement ceiling for themselves. We like to glorify champions, but what’s true in sports is just as true in business: solid teams that work together to achieve a singular goal find more success (and less stress!) on the court.
Multifamily real estate investing is a team sport—as an investor, you are the head coach of your real estate team. Your job is to get your players to work together effectively so you can create winning opportunities.
We’ve broken down your dream team into 11 skilled positions. Use this guide to help build your roster. Each skilled team member you recruit will put you well on your way to winning championships in the real estate world—whether that means reducing risk, reaping rewards, increasing efficiency, or alleviating stress.
If you’re the coach of your real estate team, the broker is your agent. A broker works for you to source the best deals from various sellers and make sure you get what you’re looking for. A broker will vet opportunities and bring the best deals you to the table. They can also be invaluable in the negotiation process when acquiring properties.
Further, a broker helps with asset disposition, or the selling of properties or assets to help create greater real estate investment opportunities for you.
The lender is the captain of your team—well-connected with good rapport with the rest of the players on your team. Your lender should have access to many different loan programs and solutions to help you find the best loan for your deal.
A lender can (and should) bring you more than loan options. Your lender helps connect you with other players as you build the right real estate team for you and your goals—this is one of our priorities at Bonneville.
3. Title and Escrow Company
When choosing the right title and escrow company, you want a firm that will be efficient. Efficiency is key—it will help the transaction progress quickly, and most importantly, ensure your closing goes smoothly. Your lender can be a great resource in finding a good title and escrow company for your team because they will have worked with many and know who will perform well for you.
Paperwork and contracts are an inevitable and essential part of real estate. You need someone who can administer the legal aspects of your investments and protect you and your assets. A real estate attorney will set up the necessary legal entities and documents so you can manage and protect your business.
Specialized attorneys have deep knowledge in their legal area that you might not possess. Remember, an ounce of prevention is worth a pound of cure. You may even want a couple different attorneys with different disciplines depending on your needs. Specialists will be a shortcut to getting what you need and will probably save you money too.
5. Property Manager
Many real estate investors begin by self-managing their own properties. Ambitious investors learn you can’t scale or grow nearly as fast without outsourcing property management.
Beyond monitoring your property and insulating you from your tenants, using a property manager eliminates inefficiencies. Property management should provide you monthly reporting, which gives you anecdotal and factual data to aid in growing your real estate portfolio.
The right property manager can make all the difference in the world and they aren’t all created equal. Make sure they are good record keepers, transparent in their operations and they send you good, easy to understand monthly reporting.
An accountant can do more than simply file your taxes. Accountants help investors maximize returns, primarily through minimizing tax obligation. There are firms and CPAs who specialize in real estate. This is player on your team can add real, monetized value to your business. Real Estate offers a lot of tax benefits so be sure to find a CPA that is well versed on how take advantage of everything you can.
7. General Contractor
Along with an accountant, a general contractor (GC) can be a huge resource in helping you add tangible value to your real estate portfolio. A good contractor knows where you can save money in rehabbing your properties and what adds the most value to your properties for the lowest cost in time and resources.
Multifamily investors know building permits can be a headache, but a GC knows how to navigate obtaining those permits. Having a good working relationship with your builder will pay off in spades.
8. Insurance Broker
When looking for an insurance broker for your real estate team, find one who has access to multiple insurance carriers. You want a true broker—not a captive agent who works for one specific insurance company. Additionally, find one that knows your space and has a track record insuring your asset class. Each class of commercial real estate has its nuances so find someone familiar with yours. A good insurance broker will help you get the best coverage at the lowest price because they can shop multiple policies and coverages.
Surprised by number nine? We live in a digital world, and when marketing properties to prospective buyers and tenants, great photos can make all the difference. Think about how a good photographer and a social media account can work together to build your business. Building a relationship with a photographer can be relatively inexpensive and bring big returns because good photos will attract higher paying tenants and buyers.
10. Your Network
Not many people think of their network as a team member, but lots of deals get done through your greater network of connections. It’s through your network that you meet the best players for your team. Always remember to nurture your connections through social media, events, associations, and other industry groups. Once you have you team in place, their network will become your network as well.
Your network is a living breathing entity and never stays stagnant. It is either growing or shrinking. It is up to you to ensure it is growing and even though intimidating to some, it can be a lot of fun. At the end of the day real estate is a relationship business, so the more relationships you have the more successful you’ll be!
11. Your Personal Library
Your own personal library is an enormous resource to you. Books, websites, podcasts, and blogs contain the best ideas, summarized from lifetimes and careers of work. Being able to draw upon this fountain of ideas and knowledge will be enormously beneficial to you.
A few great books or tried-and-true websites can be a well to go back to often to remind yourself of the best ideas and strategies for building your portfolio as a multifamily investor.
A Solid Team is the Key to Your Success
Building your real estate team isn’t a one-time event – it’s an ongoing process. Being a successful manager means seeing what works best and how your players work together so together, you can be as efficient as possible. As you network and learn more, you can see what personalities work best with you and your trusted team members and make decisions based on that knowledge and experience.
The better you are at coaching and leading the players on your real estate team, the more synergy and success you will see as a professional multifamily investor.