In a past set of articles, I introduced the idea of having a team around you to help build your apartment empire. Since the team is so important to your success as a real estate investor and, more specifically as an apartment owner, I would like to take the opportunity to discuss how to find and use these team members in a little more detail.
Just to recap, some of the essential team members that you’ll want to have in place include:
- Bird dogs
- A real estate agent or agents
- A commercial mortgage broker
- A banker (one or more)
- A title company or closing attorney
- A real estate attorney
- Private lenders
- An SEC attorney (if part of your business includes securing private funding)
- An asset protection attorney
- An accountant or CPA
- Property management companies
- Contractors
The term ‘bird dog’ has taken on a lot of significance in the world of real estate investment. From small residential properties to large commercial buildings, bird dogs in real estate represent the gateway to deals that might not otherwise be as easily found. How you choose to use bird dogs is up to you but they can be a great source when looking for quality apartments to purchase.
Fundamentally, a bird dog is simply someone who locates what they believe to be a good deal and then lets people they know about the deal, instead of pursuing it on their own. Investors have long sought deals through this avenue and it takes on even more importance for you when you pursue larger deals like apartments, which very well may be out of your primary market.
In commercial real estate, a bird dog is more likely to be another investor, and should be someone who is well plugged in to their local market. Most commercial bird dogs invest but may lack the resources to invest in the larger properties themselves so they elect instead to seek referral fees for the larger deals they find. When a bird dog works a particular market themselves, they will meet and know a lot of property owners, some of whom may become motivated and need to sell.
Expect that commercial bird dogs will want to be paid for their insight and pointing you in the right direction, but this is money well spent if the deal is good enough and is only relevant if a deal actually closes. My suggestion is, for every market in which you seek commercial properties, spend some time to locate one or more good bird dogs, let them know what you are looking to do, and then let them do their thing. It’s their time and effort and they only get paid upon successful closings so who could ask for a better deal than that?
Can you see how your empire can be created without you not having to be a jack of all trades? Just about all highly successful business owners respect and implement the power of delegation and it is wise to pattern your own business accordingly. Follow with me through this series and you’ll soon see how your own team can help you acquire the apartments you seek and help build the fortune that is out there for the taking!
