First Step in Assembling a Team

[Chris Hines]

So I've been reading through the UBG, specifically section 4.  In this, it talks about assembling your team.

Here's my question.  I've done nothing purchase related yet.  But I'm interested in establishing the framework to start my business.  Is it premature for me to talk with a tax professional and decide on a structure before I start looking to buy?

I know I'm going to target either turnkey properties, either 2 single family or a small multi around the end of the year.  I know I'm planning on doing conventional financing to begin with as my investor profile should allow that.  I also will keep my 9-5 job (15 month triplets are extremely expensive). I've started working on my business plan as well.

Insight appreciated, if I'm missing something please feel free to critique or ask me.

[Bill Gulley]

Saying you need to form a company is a little premature, try the first few individually so you can get better financing. But, before that, hate to mention it every time I post (I really do, but seems many are missing the first step) learn real  estate, not strategies in real estate. You can't really choose the best strategy in a market without understanding real estate. 

Most new to the business elect an LLC. Talk to your tax person before making an election on how the LLC is to be filed.

You need an understanding of real estate to form your business to take various opportunities, you set out your operations in your operating agreement and you can simply get it right the first time when you have a plan that can be flexible.

Needs to be flexible in real estate as market conditions change. 

To my knowledge, it's only in real estate that people without any business awareness decide to go into the real estate business without knowing the industry and understanding real estate, amazing but true. No sane person would go open up a tire store without knowing the tire business, guess there aren't many tire gurus.

As to team selection, picking the right person for your operation, again, how can you select the best available when you can't judge their knowledge because you don't know enough about the business? So, again, folks get the cart before the horse trying to plan empire building based on folklore and dreams. 

You probably don't want to waste your time chasing fairy tales, that should be with your triplets, congrats dad, so take your time, learn, take a business like approach but don't be in a hurry to be the owner of a business, you can still profit in real estate while getting your feet wet. 

Good luck :)