Real Estate Investor Emergency Plan

[James Orr]

I care about my wife and best friend and should something happen to me, I want them have all the information they need to step in and run my real estate investing (mostly rental properties) and real estate brokerage businesses.

I am going to create a list of important instructions, resources about where stuff is and how I typically operate my business to make the transition easier for them should I get sick, injured or even die.

I've got a decent list of things I'm going to provide to them (via my attorney who will hold it in trust for me) and of course I'll let them know they should contact my attorney for this should something happen.

My list is pretty long already, but some examples for me are:

1. Bank accounts and what I usually deposit and pay out of each one.

2. List of houses I own, mortgages on them, insurance companies, tenants, leases, LLC/trust names.

3. What partnerships, LLCs I am a member of (and whether I am active or passive).

4. My preferred contractors and vendors and where I'd recommend they get advice from on key areas of my business.

5. Cell phone password, email login and password, dropbox login password, bank account logins and passwords.

6. Family/friends I am giving money to and how much and family/friends that should never receive money from me (under any circumstances).

My questions for you all are:

1. What things would you need to know to step in and operate another landlords business?

2. What things would you want to tell someone who was going to step in and take over your business?

Thanks!

[Shane Baganz]

I've run businesses for others and I've grown and run my own highly successful business. (Not real estate involved) Either way we've created SOPS (standard operating procedures)
Every employee detailed what they did, how they did it, in writing, and if needs be, with diagrams.
(This was huge when we sold to investors)
It takes time. But, this will answer what needs to be done in case of emergency. Someone picks up your manual and it's all the way you would do it.
At first, it's a mountain to tackle.
Be methodical and detailed. Date each page for when you write it.
Each time you make a change, it's an update. Change the page(s) detail and re-date the page.
It's not simple. But, once you have this binder in place you will sleep well.