What would you look for in skills for trust building?

[Clayton Collins]

I work as a residential realtor and I've done 4 sfr investments and 1 industrial investment.  My intention is to buy large apartments and I've talked with 3 different groups that do it locally to me.  I would like to run them myself and it seems that joining someone would make it go much faster though.  What skills or certifications would you recommend that I could bring to the table that would help build rapport and get me in the door faster or better?  

[Scott Mac]

Hi Clayton,

If you want to form a new additional group from existing group members 

Find out what are they lacking or could use more of?

There's always the big two:

  1. Liquid Cash Money, which is usually a good starting point.

  2. Net worth to cosign with is another.

Lacking that, (as you said, run them) offering property management might work for some.

But for some that will not work if the lender requires an experienced property manager in order to make the loan.

Skills:

Some of the things you should understand:

  1. underwriting for large complexes to know what's a good deal and if you want to participate in the deal risk wise,

  2. how partnership splits are handled accounting wise so you know what you and they are getting; and

  3. how the IRS looks at transactions and income from group investments so you know what you're getting into and can make intelligent decisions from a tax standpoint. (Basis, 1031's K1's, 1065, Phantom Income, etc...),

  4. that you may need (to pay) a securities attorney,

  5. and a lot lot more. 

 Good Luck!