team member’s hands

What to Include in Real Estate Business Team Interviews

As a real estate investor with an eye on owning apartment communities, you need two things in your arsenal to maximize the returns on your investments. One, you need a solid understanding of how to identify potentially lucrative deals and how to execute them. And two, you need to surround yourself with a winning team of professionals who will support you each step of the way.

So, who exactly do you need to hire to be on your real estate investment team? And how do you know which candidates are truly the best ones to work with as you strive to succeed in apartment syndication?

Here’s a rundown on what to include in real estate business team member interviews as you try to establish an all-star investment team.

How to Choose a Mentor for Your Real Estate Investment Team

A mentor is a core investment team member, meaning that he or she is one of the most critical experts to have on your side before you embark on any deal. An important question to ask a potential mentor is if he or she owns properties, and what the mentor’s net worth is. This can demonstrate his or her success in the biz and prove their experience and expertise. Also, will the mentor want to take part in your real estate deals, or will he or she simply advise you? Establishing the nuances of the relationship right away will make things easier in the future. Finally, make sure that your potential mentor shares your business values and understands your goals.

How to Choose a Property Management Company for Your Real Estate Investment Team

A property manager is yet another core investment team member you’ll need to hire to effectively manage and scale your business. When interviewing real estate managers, be sure to ask them how many rental units they currently manage. Ideally, you want a manager with anywhere from 200 to 600 rentals, as too few units indicates that the company may not have much experience, whereas too many rentals mean you may become a number. Be sure to also ask about the company’s management fees, and choose one whose fees are based only on collected rents, as this will motivate it to constantly fill vacancies.

How to Choose a Real Estate Broker for Your Real Estate Investment Team

Your real estate broker will also play an important role in your investment team, as he or she will help you to buy or sell properties when the time is right. Make sure that you ask potential brokers how much they charge and why they stand out from their competitors. For instance, if you’re big on communication, you may want to go with a broker who prides himself or herself on constantly being available by email or phone. In addition, consider asking brokers if they offer any guarantees, which means they’ll stand behind the service they give you.

How to Choose a Real Estate Attorney for Your Real Estate Investment Team

A real estate attorney may not necessarily be on your core investment team, but he or she is a secondary team member who still plays a valuable role in your real estate investing efforts. A wise question to ask an attorney is what he or she recently did during a transaction that did not occur as planned. In addition, you may want to find out if he or she can recall a time when his or her efforts had a positive impact on the outcome.

How to Choose a Mortgage Broker for Your Real Estate Investment Team

You may also choose to include a mortgage broker as a secondary investment team member. Before you hire a given broker, consider whether other fees exist beyond points and interest. Also, what is the funding timeline? In other words, how quickly can your loan be turned around? Make sure that the mortgage broker you hire also has experience with funding the kinds of real estate projects you are pursuing.

How to Choose an Accountant for Your Real Estate Investment Team

As you seek to build the ultimate team, note that you’ll additionally need to work with an accountant. This individual will make sure that, in all of your revenue generation activities, you don’t end up getting into trouble with Uncle Sam by not paying your taxes or not paying enough taxes based on your earnings.

Ask potential accountants what types of companies they’ve worked with, and check to see how many years of experience they possess. It may also behoove you to ask them if they are Certified Public Accountants (CPAs) or if they have other qualifications. Note that no CPA designation is necessary to fulfill the responsibilities of a real estate accountant.

Another thing to consider when interviewing accountants is if they own any real estate properties of their own. Or, how many of their clients own rental properties that produce income? If they are also real estate investors or at least work regularly with real estate investing clients, they’ll have a better idea of how to help you manage the financial aspect of your own real estate business.

Start Interviewing Experts and Hiring Winning Professionals

No real estate deal is successfully executed in a vacuum. In other words, if you expect to make lucrative deals happen, you’ll have to rely on other people—like a mentor—to pursue, execute, and generate money from these deals.

I could be the mentor you need to get your real estate business off the ground and start experiencing serious gains as an investor. I’ll show you how to successfully fill all of the other openings you have on your investment team as well. In fact, you can check out my three-step approach to hiring brand-new real estate team members with ease.

Contact me today to further discover how to add competent experts to your real estate investment team time and time again.

real estate investment property

How and Why to Diversify Your Real Estate Investment Portfolio?

On the day you purchased your first piece of real estate, you swore to yourself that it would be a day you’d never forget. But then another property came along. And another one. And yet another one. Now, you truly have a robust real estate portfolio at your fingertips, and you couldn’t be prouder.

The question is, are you making the right moves to protect your investments? How sure are you that your real estate investment portfolio will remain intact for years to come, no matter what economic or real estate market changes may come your way?

While there’s no crystal ball that will definitely tell you the future of real estate in the months or years ahead, diversifying your real estate portfolio can increase your chances of staying afloat financially, no matter what the future holds. Here’s a rundown on why and how to diversify your investment portfolio today.

Why Diversify Your Real Estate Investment Portfolio?

Real estate portfolio diversification is where your portfolio’s investments vary in amounts that are relatively equal. Unfortunately, many new investors make the mistake of overlooking the need to diversify their real estate investment portfolios. And this is far from being a minor mistake.

Here’s why.

Remember the Great Recession of 2008, when the United States’ housing market experienced a major collapse? Sadly, many homeowners ended up losing their homes. Also, many homes’ average value decreased drastically. However, your average homeowner wasn’t the only one who suffered.

Real estate investors whose prime focus was to rent out residential homes also suffered a huge blow. In fact, they likely ended up losing their businesses. However, real estate investors who obtained income from sources outside of residential properties had a greater chance of surviving the 2008 collapse.

Let’s take a look at how you can go about diversifying your real estate investment portfolio.

How to Diversify Your Investment Portfolio Tip 1: Invest in Different Areas

Each section of the United States features distinct characteristics that affect the real estate market. Therefore, if you invest in various regions of the country, it’ll be harder for sudden shifts in different geographic parts to detrimentally harm your investment business.

The reality is, the next real estate bubble could easily happen within a decade or so, based on historical trends. Of course, various factors might contain the next bubble to a certain region, delay it, or soften its blow. Nonetheless, a bubble will happen again at some point.

Therefore, it only makes sense to try to buy and hold properties in several markets when building your real estate investment portfolio.

Where to Look

If you’re looking for the top cities for apartment real estate deals, for example, note that many areas in the country’s interior have been promoted as the best for investors to focus on. This is because, in such cities, price cycles tend to be less extreme, and they also don’t happen as often.

Still, cities on the country’s exterior can also be great markets for real estate investors, if they offer strong job and population growth potential. Also, look for cities where civic groups and government officials are forward-thinking in their planning and development, as appreciation opportunities are likely to exist in these areas.

Considerations

Note that, if you do diversify your real estate investment portfolio by investing in different markets, ensuring appropriate property management can quickly become complex. For this reason, it is critical that you look at all of your property management options in various cities prior to deciding to pursue property investments in these cities.

How to Diversify Your Investment Portfolio Tip 2: Invest in Different Types of Properties

In addition to targeting different markets for your real estate investment portfolio, consider buying different types of properties, too. Single-family homes are certainly an excellent way to invest because they don’t present many hurdles for investors, especially for beginning investors. However, if you are focusing on single-family residences, be sure to purchase homes across many price points.

In addition, try to buy apartment communities, commercial properties, and even industrial properties as well. In this way, losses in a certain property category won’t necessarily cause you to lose your business.

Apartment communities, in particular, offer many benefits to investors. For instance, because you own so many units with an apartment deal, you won’t be affected by a single vacancy like you would be with a residential investment property. These properties also offer the benefit of being scalable and generating significant cash flow. The cash flow opportunities that come with these types of properties make them especially valuable for those looking to generate passive income.

Commercial properties are also known for producing strong cash flow. You’ll also face less competition with shopping centers and office buildings than you would with residential properties due to the more complex nature of commercial property investments.

The good news is that many cities where returns are strong for homes also offer great returns for nonresidential properties.

How to Diversify Your Investment Portfolio Tip 3: Make a Variety of Business Connections

Conduct business with various developers and investors. This is a wise move because various experts might specialize in specific property types or markets. The more connections you have in the industry, the more likely you are to make smart investment choices that will lead to a strong, diverse portfolio.

Start Diversifying Your Real Estate Investment Portfolio Today!

Now is an ideal time to begin working on making your real estate investment portfolio more diverse. The great news is that you don’t have to go about managing your real estate investment portfolio on your own. Also, you can make your life easier by becoming a passive real estate investor.

Become a passive investor and master the art and science of diversifying your investment portfolio. Get in touch with me today to learn more about how to shield yourself against future economic downturns and grow your profits with the right real estate diversification strategy today.

Download the FREE Passive Investor Resource GuideSimply provide your information to download