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Want to build your own RE Investment platform?
The blueprint: @fortworthchris on episode RE #106 of @theFORTpodcast.
Here's what you need to know
The blueprint: @fortworthchris on episode RE #106 of @theFORTpodcast.
Here's what you need to know
1a/ The Early Stage - Seasoned Vets
Main Goal: Buy that first deal!
Challenges:
1. How much skin will you put in the game?
2. Are you able to raise debt? Under what terms?
3. Do you have a track record in the market?
Main Goal: Buy that first deal!
Challenges:
1. How much skin will you put in the game?
2. Are you able to raise debt? Under what terms?
3. Do you have a track record in the market?
1b/ The Early Stage - Newcomers
Main Goal: Still buy that first deal!
But different challenges:
1. No one knows you
2. No track record
3. May be challenging to raise money
Main Goal: Still buy that first deal!
But different challenges:
1. No one knows you
2. No track record
3. May be challenging to raise money
2/ Setting Up Your HQ
*assumes not working remote*
You have to set up a ton of things which have nothing to do with real estate.
Even better, they're very costly.
Potential items:
- Computers
- Maps
- Software
- Servers
- Printers
*assumes not working remote*
You have to set up a ton of things which have nothing to do with real estate.
Even better, they're very costly.
Potential items:
- Computers
- Maps
- Software
- Servers
- Printers
3/ Inflection Point
Once you get a few deals under your belt, you have a decision to make:
Will your company continue at ~1-2 deals per year?
Or will you take it up to 10, 20, 30+ deals a year?
Said differently: do you want to do deals, or build a company?
Once you get a few deals under your belt, you have a decision to make:
Will your company continue at ~1-2 deals per year?
Or will you take it up to 10, 20, 30+ deals a year?
Said differently: do you want to do deals, or build a company?
4/ ~1-2 Deals Per Year
At this size you are likely a one or two-man band.
You'll be:
- Sourcing
- Underwriting
- Putting out fires
- Fundraising
- Much more
TL;DR You have a finite amount of time.
Every minute you're doing one thing, you're not doing something else.
At this size you are likely a one or two-man band.
You'll be:
- Sourcing
- Underwriting
- Putting out fires
- Fundraising
- Much more
TL;DR You have a finite amount of time.
Every minute you're doing one thing, you're not doing something else.
5/ Silver Bullet First Hires
One Chris's best and first hires was Shana, a Commercial Loan Assistant from a local bank.
Delegation-wise, hiring a bank-experienced CLA is one best first hires you can make.
Typically have great training and soup to nuts transaction experience.
One Chris's best and first hires was Shana, a Commercial Loan Assistant from a local bank.
Delegation-wise, hiring a bank-experienced CLA is one best first hires you can make.
Typically have great training and soup to nuts transaction experience.
6/ Company Size: ~6 Deals
At this point you need to hire trained Asset Managers.
"Somebody who wakes up and shows up to that office everyday with the mission of improving the assets inside of the portfolio"
At this point you need to hire trained Asset Managers.
"Somebody who wakes up and shows up to that office everyday with the mission of improving the assets inside of the portfolio"
7/ More People, More Processes
As you keep adding people to your journey your process changes.
Every time you double in size your processes have to be improved on.
How are you going become more efficient?
Someone must own this or things will slip through the cracks.
As you keep adding people to your journey your process changes.
Every time you double in size your processes have to be improved on.
How are you going become more efficient?
Someone must own this or things will slip through the cracks.
8/ How To Fuel Your Growth
You must increase your fees to fuel your growth.
Delivering consistent value to your investors merits higher fees.
You can't scale a business without increasing revenue.
You must increase your fees to fuel your growth.
Delivering consistent value to your investors merits higher fees.
You can't scale a business without increasing revenue.
9a/ The Leap From ~5-6 to 25 People
Here's what Chris's team currently looks like:
Asset Management:
- Involved in initial DD and acquisition process.
- Dealing with leasing brokers and implementing business plan.
- Quarterly reforecasting
Here's what Chris's team currently looks like:
Asset Management:
- Involved in initial DD and acquisition process.
- Dealing with leasing brokers and implementing business plan.
- Quarterly reforecasting
9b/ Cont.
Acquisitions:
- Hunting for deals all day.
- Quarterbacking the Acq. process.
- Educating the team on the deal
- Rinse and repeat
Analysts:
- Helping U/W deals they already own and prospective acquisitions.
Acquisitions:
- Hunting for deals all day.
- Quarterbacking the Acq. process.
- Educating the team on the deal
- Rinse and repeat
Analysts:
- Helping U/W deals they already own and prospective acquisitions.
9c/ Cont.
Finance:
- Sourcing new loans and maintaining current ones.
- With ~42 current deals, they are constantly dealing with banks.
Accounting:
- One of the fastest growing teams in any RE Investment platform.
- RE takes a ton of accounting.
Finance:
- Sourcing new loans and maintaining current ones.
- With ~42 current deals, they are constantly dealing with banks.
Accounting:
- One of the fastest growing teams in any RE Investment platform.
- RE takes a ton of accounting.
9d/ Cont.
Property/Construction Management:
- Managing all property-level aspects and value-add projects.
Marketing:
- Market the company.
- Market the available space/assets.
- Fundraising decks and internal presentations.
Property/Construction Management:
- Managing all property-level aspects and value-add projects.
Marketing:
- Market the company.
- Market the available space/assets.
- Fundraising decks and internal presentations.
10/ Insights From 5 Years Down The Road
- Chris's job is completely different than it was on Day 1
- You job is straight improvisation building from 6 to 25 people.
- It's almost impossible to be both the deal person and company builder.
- Chris's job is completely different than it was on Day 1
- You job is straight improvisation building from 6 to 25 people.
- It's almost impossible to be both the deal person and company builder.
11/ Listen To The Full Episode
If you enjoyed this thread, you'll love the full episode.
Listen to the latest episode of @theFORTpodcast here: https://open.spotify.com/episode/6bh4jT8lyemKTKITPJsbHf?si=8sMBIEQNRi-9iKSmDoFZIg
If you enjoyed this thread, you'll love the full episode.
Listen to the latest episode of @theFORTpodcast here: https://open.spotify.com/episode/6bh4jT8lyemKTKITPJsbHf?si=8sMBIEQNRi-9iKSmDoFZIg
12/ More Threads
If you learned something from this thread, check out my best ones here: https://twitter.com/ChandlerReedRE/status/1350832192348446722?s=20
If you learned something from this thread, check out my best ones here: https://twitter.com/ChandlerReedRE/status/1350832192348446722?s=20
