How To: Acquisition Manager

[Jessey Kwong]

Hi BP Community.

I've been hearing the term "acquisition manager" a lot lately. 
And I am an out-of-state investor and this sounds like something that will help me scale my REI.

So for those who have knowledge about "acquisition managers":

1) How did you meet and approach them about becoming your acquisition manager?

2) How do you make it worthwhile for them to become your acquisition manager (compensation)?

3) What is your process like working with you acquisition manager?

4) How has your acquisition manager changed your investing goals?

Thank you and wishing you all to stay focused and crush your goals!

[Dave Passey]

Acquisition manager is a broad term and they could have very different roles depending on your investing style and goals. I work as an Acquisition manager for a company. It is owned by a friend and we have worked together for a long time so I don't know if I am the best example, but since I have been with the company we have hired on 5 other acquisition managers. 

1) A couple of them contacted us and were put through rigorous interviewing and questioning about personality and goals. We did put up an ad and got one guy from that. We had many applicants and only chose the best one and he has been awesome. One was referred by a colleague and unfortunately did not work out in the long run. 

2) There are many ways to compensate an acquisition manager which all usually boil down to some cut of the proceeds from the property. Percentages are based off of how much the acquisition manager has to do in the entire process. Some AMs only acquire the property. Some acquire the property and get it through the title work process. Some acquire the property, get it through the title work process, and sell to an end investor (if you are a wholesaler). All of these would have a different compensation structure that should be discussed with your AM and see what they want their role to be. 

3) I can't really answer this one because I am the AM, but I know that the business has certainly increased its profits significantly since hiring on AMs because the one hiring is able to focus on other important parts of the business. 

4) Once again, I am the AM, but I know the owner of our company has been able to step out of the company more and allow it to run independently and focus on other revenue creating opportunities. Basically it has allowed him to have fully functioning company without being present so he can go and make more money. 

Good luck and happy investing!!