The Ideal Real Estate Team
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The Ideal Real Estate Team

Ideally the best real estate team would be comprised of a combination of eight investors, 2 Realtor, 2 Financier, a Contractor, an Accountant, a Lawyer and a Property Manager. As a group their roles would be both as Buyers and Sellers with a focus on a fiduciary responsibility to the group.

What is the ideal real estate team? The purpose of putting this particular real estate team together would be as an investment group. Ideally the team would be comprised of a combination of eight investors. As a group their roles would be both as Buyers and Sellers with a focus on the following professions as its members:

  1. Realtor-1
  2. Realtor-2
  3. Finance-1
  4. Finance-2
  5. Contractor
  6. Accountant
  7. Lawyer
  8. Property Manager

Two realtors would be helpful. One dedicated or specialized in representing the buy side. The other would represent the sell side. There is no reason why both realtors should not be skilled in negotiating from either perspective. For the sake of specialization the nuance of representing a buyer is different than those representing the seller. In all cases the fiduciary responsibility on how to best serve the group would be tantamount. None the less there is much merit in the distribution of labor being divided between selling the groups property and buying property for the group. This is the point for the division.

A similar rational would be why two financial experts would be needed. One would be for acquiring funding for group purchases while the other would be for finding financing for customers not within the group. Individuals who could use funding to expedite a transaction for property being sold by the group. Keep in mind the group would need to have a self financing model as a part of the operation as well. As providers of investment capital these funds are not profession specific but a matter of personal means. It should be clearly noted such individuals can simply be the group’s source of funding.

Having a good contractor is essential. The ability to take advantage of the full range in real estate inventory on the market where the state of the property is considered in a distressed condition the group would need someone who can assess the restoration cost and complete the work with the profit motive of the group in mind.

The need for a good accountant should be self explanatory because the business of real estate has some very sophisticated tax implication. Having a good tax accountant with a management background such an individual can help the group develop a tax strategy that could greatly contribute to the bottom line.

A successful real estate transaction is heavily dependent on how well the contract is structure. A good lawyer can help navigate the group through contractual pit falls but their legal background should have a strong risk management component in order to minimize potential costly lawsuits. The real estate industry operates in a very litigious climate. A good layer motivated to protect the interest of the group can save money and provide strategic guidance to avoid over speculation and prevent taking on bad risk. At the same time being there in the event a tort crisis arises.

The property manager should hold a real estate license depending on the laws of the state where the group is incorporated and/or doing business. The makeup of the group’s property investment portfolio there should be commercial holdings in the form of office building and various multi unit apartment buildings. Just like the previously named realtors are dedicated to working for the buy side or the sell side the property manager would be dedicated to assuring the group’s investment holdings are being rented and operating at maximum efficiency.

Overall any real estate investment group could take on different members. Of course the choice of players would be heavily dependent on the investment strategy of the group. Ideally an investment group is designed to maximize profit. Therefore some property would be purchased to hold onto while others would have a short term plan for turning a profit. The diversity of the group would allow the team to broaden its approach to taking advantage of the market. Real estate has economic cycles. At any given time the best way to optimize investments may depend on the flexibility of the group. With these eight players involved the groups should be poised to take advantage of most real estate opportunities.

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