Boots on the ground in Florida - feedback on business plan

[Chris Duffy]

Hello all, 

I was hoping to get some feedback on my business plan/value propositions for a business I recently started. 

I've been getting mentored by a CCIM instructor who has syndicated, JV'd, etc. but is a big proponent of 'strategic partnering' in that he essentially comes in on multi-family deals and assists sponsors/syndicators with things such as market analysis, boots on the ground, asset management, etc. He doesn't take a cut of the GP, just collects a fee and either re-invests it into their deal or takes it and can go buy his own assets with it.

My plan is similar - I'm well located in quick range of some of America's best real estate markets - Tampa/St.Pete, Jacksonville, Orlando, Ocala, Naples, etc. I'm a former construction manager who owns a few rental units here in Tampa and manage them myself. My plan is to provide long-distance or out of state investors/sponsors/syndicators active boots on the ground, due diligence & acquisition assistance, and project & asset management. I've been networking with out of state individuals who see value in this proposition and am aiming to partner with them to help them close more deals. 

In your honest opinion, do you see value in this proposition and second, what would you consider reasonable compensation for something like this? Obviously, it'll range depending on how much assistance the client would need(they may only need boots on the ground and not asset management after the deal has closed, for example) but ballpark.. 

[Khaled Morad]

Hey Chris. I believe a lot of people do property acquisitions as an agent and offer management after purchase already here in Tampa. They work with a lot of out of state clientele and therefore provided boots on the ground as an included service. 

You are essentially asking to bird dog as a separate service. And I don’t think there is much market for that when someone can just get an agent to do it all (without pay until closing).

I think your best bet is to become a one stop shop, full service agency with management and good vendor connections. That’s where the value is to OOS buyers. 

In any out of state forum for Tampa, you’ll see agents chiming in saying they offer all of the above :)

Since you are in Tampa, I’d love it if you joined our RE meetup this Wednesday at Cigar city brewing (spruce street) at 6pm!