For today’s episode, we will be discussing building your team in under 10 minutes.
We will go over who are all needed to surround yourself with if you are looking to passively invest.
What can we do from an investment that typically requires high minimums compared to other vehicles to park money?
We will talk about these things…and more in another episode of Multifamily Investing Made Simple in under 10 minutes.
Tweetable Quotes:
“find somebody who has operated in this space before because they’re going to know a lot more about the nuances and the tips and tricks that can save you a ton of money” – Anthony Vicino
“spending a couple of hundred bucks so that you can sleep at night knowing that you’re in bed with a good operator and things are structured” – Dan Krueger
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Building Your Team in Under 10 Minutes
Anthony Vicino: [00:00:15] Hello and welcome to multifamily investing made simple in under 10 minutes, this is the show where we take the complexity out of real estate investing so that you can start taking action today.
Anthony Vicino: [00:00:24] And this afternoon, we are going to be taking the complexity out of building your team as a passive investor. So, Dan Krueger, we know that real estate is we game, not a game. Who all who are all the weeds I got to surround myself with if I’m looking to passively invest in syndication?
Dan Kreuger: [00:00:43] Yeah, it’s a daunting proposal. If this is a new concept and you just go down that rabbit hole, it could be quite intimidating wading into these waters, because if you’ve listened to these other less under the 10-minute episodes, we’ve alluded to the fact that typically these deals have a fifty thousand dollar minimum. And for a lot of people, you know, that’s right up there with the amount of capital it takes for them to buy their first home. And it’s probably going to be a fairly large investment for most people who are used to just trading in stocks or mutual funds or the minimum to get involved is fairly low. So it’s important to surround ourselves, with people who can assist you in making the right decisions and making sure that you are doing things that are prudent and risk-averse and in the best interest of you and your investment goals and parameters. So let’s say one of the best people to have in your corner right off the bat is a good CPA, somebody who understands these types of investments because not every Joe Schmo that works at an art block is going to have a good understanding of these types of investments. And they won’t be able to adequately provide you with guidance from a tax perspective on how these investments can benefit you and how you can effectively invest in them in the most tax advantageous way. So a good CPA Zeffirelli near the top of the list.
Anthony Vicino: [00:02:03] Yeah, absolutely. And a good CPA is going to save you more than they cost you in the end. But the caveat here is that Dan alluded to is that not all CPAs are created equal. They don’t all have the same focus and real estate and syndications, private placements. It is, I wouldn’t say a new thing, but it is definitely alternative enough that your general CPA is not familiar with it, enough to be able to really understand and maximize your returns. So I would recommend you do a little bit of due diligence and find somebody who has operated in this space before because they’re going to know a lot more about the nuances and the tips and tricks that can save you a ton of money in the end. So maybe the guy that you’ve been using, if it’s your uncle for the last 10 years, might not be the guy to keep moving forward with. So maybe look into that. The next person on the team that I would highly recommend you can’t do without is a good lawyer because there’s going to be a bunch of legally binding contracts that you’re signing. And before you sign anything, it’s really important that you know that there’s nothing in there hiding that’s going to bite you in the butt later.
Anthony Vicino: [00:03:06] And I’m not saying that there are unscrupulous operators out there, but there are definitely unscrupulous operators out there. They will burn you if you are not careful.
Dan Kreuger: [00:03:17] Yeah, I’m going to just double down on that and just say again that it’s money well spent. Even if you just utilize a lawyer to review the P.P.M. on your behalf, might cost you a couple of hundred bucks, which might be a bit of a pinch and might be annoying. But spending a couple of hundred bucks so that you can sleep at night knowing that you’re in bed with a good operator and things are structured in a way that protects you is paramount.
Anthony Vicino: [00:03:40] So in addition to oh, I was going to say, yeah, and if you’re new, the lawyers great, especially again, it’s all about finding a specific lawyer who understands the nuances of what these private placements are because they can guide you through the questions that you might not even know to be asking yourself and saying, hey, I’m not saying there’s anything weird about this in the p.p.m., but maybe let’s sit down with the operator and ask them why they’re structuring it in this way, you know, and you just won’t have that insight. So that’s super helpful.
Dan Kreuger: [00:04:08] Yep, 100 percent. So next one. Well, I should say there’s some kind of an obvious one, but operators, you know, the guys putting these deals together and not just one, you don’t just want to find one guy who you follow around. You want to find at least a handful of good operators that are investing in the types of deals that you’re interested in, that are producing the types of returns that you’re looking for, and that share an investment philosophy and have a similar moral compass as you. So this you know, you could find these people online. But listen to a podcast like ours by going into meet-ups and go into networking events. Once you find a few good operators, you don’t really need to keep looking for anybody else. You find a handful of guys that are operating in the space that you want exposure to. And those are going to be pivotal team members because without those guys, there are no deals for you.
Anthony Vicino: [00:05:02] Yeah, we say this all the time is about the jockey, not the horse because a good jockey is not going to get on a lame horse. So a great operator, they’re not going to bring you a bad deal. So spend the time vet them. Really get. To know the people that you’re going to hop into bed with and make sure that you’re diligent now to find those operators if you’re listening to a podcast like this, you’re already on the right track because you could reach out to people like us, even if you’re not interested in the things that we’re investing in. We have references we can connect with you. If you’re saying, hey, I’m looking to invest in Tennessee, who do you know? Or I’m interested in self-storage, where some good operators might be able to connect you there or just listen to the backlog of episodes that we’ve done with interviews on a bunch of different operators here in the space. So just a ton of information out there. There’s no excuse at this point. That’s not like a black box where you can’t find the people. They’re easily accessible. So so spend the time, make sure that you’re getting into bed with somebody that you’re not going to wake up in the morning and want to tear your arm off.
Anthony Vicino: [00:05:57] Mm-hmm. And then finally, last but not least, unless you have somebody else to add to the team, this person, I think, is very undervalued. And because you can’t really go out there and Google this person, but you do need a mentor or an adviser of some sort of a third party that can look over your shoulder and give you advice and say, hey, are you on the right path? They can save you a lot of time and energy and mistakes.
Dan Kreuger: [00:06:24] Yeah, they even hesitate to use the word mentor, because I feel like that automatically points people towards all those individuals who are out there selling courses and are really just, you know, Internet gurus who are trying to get money out of you, but not really provide a ton of value, tons of good courses and stuff out there. Not saying that the whole industry is bad, but, you know, if you go out there and Google real estate mentor, you’re probably going to find at least a handful of guys who are going to charge you anywhere from two to five thousand dollars to get you into some kind of group and you’re not really going to get a ton out of it. So I’d say, you know, we’ll use the word mentor. But really what I mean is somebody within one or two degrees of separation from you that understands the stuff well enough to take a look at what you’re thinking about doing and say and tell you whether or not you’re headed in the right direction. So ideally, it’s someone that you already know, like and trust, who happens to be well versed in these types of deals, who can kind of look over your shoulder and help to confirm that you’re doing the right thing or say, hey, you know, this is not the type of thing you should be looking at. You should actually be looking over here. You could find this for free. Honestly, there’s probably somebody in your immediate network that would fit this description.
Dan Kreuger: [00:07:36] So it doesn’t necessarily need to be, you know, the biggest, most expensive coach out there. It could just be your cousin, Larry who’s done some of these deals and knows them, knows his stuff. And then there’s also the whole financial adviser thing. If you guys listen to yourself and typically not the biggest fan of financial advisors in their most generic form, most of the guys that carry that title are more or less just salesmen who are selling a product that their firm sells. And ninety-nine point nine percent of the time deals like the ones that we’re talking about are not going to be something that is on their menu. They’re not going to profit from it. They’ll always pooh it and say, oh, that’s risky. That’s real estate. No, by this mutual fund over here. So, again, I’d say someone that you have in your network somewhere that you already kind of know, like and trust and who’s relatively unbiased. Mm-hmm. You know, like the financial advisor, he’s very biased towards his products and maybe not an operator that you invest in because they are very biased towards their deal. So find somebody who’s intelligent and well versed on the topic but doesn’t have any kind of skin in the game on either side besides just wanting to see you succeed and do well in life and not end up as a homeless person.
Anthony Vicino: [00:08:51] But, you know, if you don’t know, if you can’t think of anybody in your network, just go online, go to LinkedIn, go to Facebook, start joining groups, go to networking events and just start having conversations. Don’t go up to people saying, hey, will you be my mentor like that? Never works, but just go and start establishing those relationships that are out there. But this person, can be very helpful because unlike the lawyer, they’re going to tell you one thing, just kind of, you know, they’re looking out to protect you and they’re going to be very risk-averse, typically. Same with the CPA. And that’s their job. That’s what you’re looking for. A good mentor can tell you some more nuanced things that the lawyer, the CPA, they’re probably not as inclined to tell you. So that is going to be, you know, the four people that you need on your team. You’re looking at a lawyer, a CPA. You’ve got to have the operators and an advisor or mentor of some sort.
Anthony Vicino: [00:09:36] So start going looking for those people. If you need help or referrals, reach out to us. We’d love to connect with you and we’ll look forward to seeing you guys next week. And.
