Playing to my strengths

[Ryan Burton]

Hi all!

I am new to real estate investing and looking to gain as much knowledge as I can. In addition to listening to the BP podcast and doing a lot of reading, I would like to learn from those who are further along than me.

I know that in order to build solid relationships, I need to show the value that I can bring to the table. After giving this some thought, I know that I can bring value through some of my biggest strengths: accounting and finance knowledge, along with the ability to learn whatever else comes my way. I am the head of the accounting and finance team at my company, and I know what it takes to build an efficient operation from the ground up. I am still learning the financial metrics and accounting principals of real estate, but I have found what I have come across so far to be interesting and easy to pick up.

So that being said, I have a few questions for those willing to give their input:

1. Have you found that having a stronger than average knowledge of real-estate specific accounting/tax is a valuable trait for someone in this industry? And if so, what are some of the best ways to learn that you've come across? Recommendations for books/courses/articles?
2. If you are an experienced investor, how does your accounting get done? It seems that most investors are knowledgeable about financial metrics, but I haven't heard much about the accounting side.

Thanks!

[Jim Goebel]

@Ryan Burton

Hey Ryan

My inclination is to say that sometimes using our strengths is our best bet.  With RE investing, I think the finance and accounting can certainly help, however I'd advise that it's not the 'core' of a successful RE venture.  I'm biased but I believe the 'core' and transferable skills for RE investing include:

• Extreme problem solving, building, and project management skills
• time management skills
• Managing people skills, sometimes people that are extremely rough around the edges
• Yes, the high level finance intuition to help make decisions however I believe it to be extremely important to not get lost in too many details

If any of the first 3 you feel you are weak on, I'd think you'd want to shore those up quickly.  There are strategic directions you can go where you can cater to your professional background more directly - however I think 'building value' is what business and RE is all about - so if you can use your financial background to 'build value' -say with technology to provide more useful tools or insight, great.  In actual RE world, in terms of acquiring and improving assets that produce income, the first 3 bullets would be where I'd focus.