I had the pleasure of spending some time with Real Estate veteran John Brauc last week in Chicago.
John has been featured on my blog before and has built his business around property management and acquisition of multi family units in Chicago. Today he has acquired 500 doors and counting and he has no sign of slowing down. One thing that I found to be very impressive with John's 23 years of experience is his extensive and detailed knowledge of the key players of a real estate power team.
Most investor's power teams are 8-9 members max and John's is very large (13-25) and keeps specific people for specific tasks. Below is an outline of the members of John's power team that he has built over his 23 year career.
Please notice that he does not keep one person for each category, he'll have multiple power team members who are highly specialized and I identify with John's strategy because you can diversify your team risk and also have a highly specialized team.
Please take a few moments to review John's power team members and ask yourself - who am I missing?
John Brauc's Power team players:
1) Multiple Real Estate Brokers
a. Multi family brokers are different than residential
2) Lawyers – fire them if they don’t call you back the same day. John uses about 5 different types of lawyers:
a. Different lawyers for different tax laws
b. Do not mix commercial and residential lawyers
c. Eviction lawyers
d. Lawyer versed in foreclosures.
e. Syndication Lawyers.
3) Deal Analyzers - People who analyze deals for you.
a. Single family analyzer - These are different than multi family.
b. Multi family analyzer different person who understands the business.
c. Have other investors or associates take a ‘second look’ at your deals and always double check
5) Book keepers
6) Insurance agents
7) Bankers, different bankers for different deals
8) Mortgage brokers
9) Funding partners
10) Mezzanine Lenders, banks only give 70%, you have 20% They will bridge the last 10%
11) Hard Money Lenders
12) Property Management Team
a. Property manager
b. Assistant property manager
c. Leasing Agent
13) Maintenance Team
a. Maintenance supervisor
b. Maintenance personnel
e. Plumbing and electrical
As I grow my business, I begin to see the effects of the 80/20 rule. 20% of your actions produce 80% of your results. Having the proper power team in place helps any investor leverage their time to maximize their efforts.
Another principal of having a great power team is to "Do what you do best, delegate everything else." Find your strength, be the "quarterback" of the team and let everyone else do the other jobs.
Real Estate is a relationship business and you must create reciprocal relationships with everyone on the team to have long term success in the business - especially with high unit counts like multi family.
The team is like a chain, each and every Team member is important and you are only as good as the weakest link. Treat the team well and they will bring you success. Invest in your people.
Set up the proper communication systems within the team and supply the right tools for them to make things work. Too often I see investors with weak teams that fall apart because of poor communication. Even in my own power team, I often have to step in when communication fails.
Real Estate is a team sport and you cannot do everything yourself. Acquiring a great team is essential to success, start building this team now, sub out the weak members and make sure your bases are covered.
Thanks for reading,
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