Assemble Your “Dream Team” to Help You Succeed

To be a successful commercial real estate investor, you need a good team. If you follow basketball, you will see all the great teams of this era made up of great teammates. Some examples are the 95-96 Bulls’ in which they won an NBA record of 72 regular season games. The reason the team won so many games is the collective effort of the team that each individual played. Yes, of course, having Michael Jordan as the best player in the world definitely helped, but even with a Michael Jordan, the Bulls would not have been able to pull off such a successful season. This is the same for any business venture, including real estate investment.

Your dream team will comprise other professionals who are experts in their trades, such as the following:

Real estate agent and brokers
Property managers
Lenders
Lawyer
CPA

Real estate agents and brokers – When choosing an agent or broker, you should know that they have a lot of experience investing in apartments rather than shopping centers or shopping centers. He or she needs to understand financial numbers, why they are making a good investment and they are not selling you offers based on “proforma” numbers. An agent or broker who actually owns investment property is a must.

Property managers – Having an experienced property manager can save you thousands and earn millions over time. Buying an apartment building without a proper property manager is not recommended

Lenders – The credit environment is quite challenging these days, with all the tighter banking consequences and underwriting requirements. I recommend having a few lenders, but also a “go to” lender. Hopefully this lender has earned your trust through many deals and has proven to be trustworthy and can work. Having a few lenders will also give you the ability to close deals when some lenders just can’t. These are lenders who have strengths and connections that your favorite lender does not have.

Lawyer – When selecting an attorney, remember to seek a real estate attorney. Don’t just look in the yellow pages and select one because it will be the quickest and easiest way to get into trouble. This is one area where you don’t want to be stingy either! You need a real estate attorney who not only drafts and reviews your contracts, but is also the one in charge of enforcing your deal and making sure your interests are protected and maximized. Another area this attorney will focus on is the correct use of entities and associations. Never start or participate in an LLC, Corporation or partnership without the proper advice of your attorney. It is always best to prevent than to cure.

Here are some questions to ask when interviewing an attorney. Also use the attached form for your interviews with the attorney

1. Ask other successful apartment and multi-family investors who they used. Go to a local Real Estate Investment Association (REIA) meeting and get referrals and recommendations from group members. Ask about 10 people.

2. When you get a list of attorneys, make an appointment with each one and interview them. Use your attorney interview sheet.

3. Do you own real estate? You are looking to work with an attorney who truly owns and is experienced in investment property. This is a huge difference compared to working with an attorney who does not understand what they are doing.

4. Get a list of three clients for the references they have worked with and who they think would use your services again. Not all lawyers are for everyone, remember that you are building the team of your dreams, so it is very important that you select the people who will play well on your team.

CPA – When selecting your CPA, it is the same process as if you were selecting an attorney. Look for CPAs who are experienced in real estate tax planning and exit planning. You don’t want to select any CPA that doesn’t understand your goals and your business. Selecting the correct CPA can save you thousands of dollars and make you hundreds of thousands now and in the future.