Assistance to get the deal done

[Fok Ming]

I am an international investor and find that Commercial real estate is very attractive. However, after doing some research, I found the purchasing procedure is very complicated. For example, when performing due diligence, it needs to have title check, physical/ financial/ legal inspections, appraisal, paperwork, constant communications with the seller and the list goes forever. So, I am wondering if there is any help available to get all these done, like if hiring a broker or agent, can he helps? Or is there any companies out there that can address all these problems?

[Chris Levarek]

@Fok Ming Yes, there are a lot of roles to be played in commercial real estate. To be effective, you must analyze which role you want to play and which others you are not so good at. Build the team around to support your efforts in those weaker areas. 

Here are some example roles on many commercial real estate deals :

1. Lawyer/Title Company
2. Real Estate Broker/Agent
3. Accountant
4. Mortgage Broker
5. Insurance Broker
6. Handymen
7. Property Inspector
8. Construction Contractors
9. Property Management
10. Coach/Mentor

The list above is not exhaustive and the bigger the property type, the more additional team players would or could be involved such as a Securities Attorney, RUBS company, Cost Segregation Consultant, Renters Insurance company, Website Specialist / Photographer, etc.

Focusing specifically on real estate syndication, here are some common General Partner roles :

Deal Acquisitions

Financing

Underwriting Analyst

Capital Raising

Investor Relations

Asset Management

Marketing

Understanding first if you want to play a role or even have the time to actively manage the deal in some of the above are important. Investing passively as a limited partner in such opportunities is a significant role as well and can align with your interests or goals. 

Investing passively or actively is always a choice of personal preference dependent on your time, capital, acceptable risk/responsibility, experience, location and desired passions/purpose.