Something to consider--real estate is a team sport

Something to consider--real estate is a team sport

Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes

After investing for 30 years I understand market cycles (of real estate as well as the financing), intrinsic value of property, highest and best use of a property, and the role of technology, good marketing and how a huge Sphere of Influence (SoI) and CRM tool can amplify yields through the roof.  My assumption is that all players know the language of real estate and are transactionally fluent.  If you are not private message me and we can get you there.  Starting from that advanced developmental basis I advance this discussion...

Real estate is a team sport.  It requires agents, brokers, title companies, lenders, inspectors, surveyors, property managers, General Contractors, Repairmen, and a host of others.  So I advance that same thought process...  Real estate is a team sport that is informationally cued where to focus.  I prefer to make my money on the buy.  Most would seem to agree...  

A recoverable down market is this contrarian investors playground.  Don't wanters meet savvy investors and their teams and problems are solved ... money made.  Money is made on the buy when an investor meets a motivated seller and solves the issue at hand for a mutually satisfactory win / win.  Often the seller has deferred maintenance issues, problematic tenant(s), loss of confidence in a property manager or maybe lingering tax liabilities.  That is where problem solving, and teams can meet the opportunity (e.g. the problem).  As an investor you are many things but the first thing you are is a team leader.  You lead a property mgr, tradesmen, and more to create value.  You create value through value assembly.  Values have value...  People want to have confidence in you and your trustworthiness, knowledge, and analysis.  Syncing each team member into their team fit is the art.  We audition for our roles daily on that team.  Property mgrs -- manage, market, maintain..  Tradesmen assess, define the scope of work, execute on a timeline first as well as a budget...  and all goes perfectly every time right? ;)  

Back to what brought this team together in this moment of time...  THE BIG PICTURE OPPORTUNITY.  Most real estate opportunity markets are created by a natural disaster, economic disaster, or local government failing to make their local economy adaptable / marketable on the big stage of competition.  Tools can be and are created to shift the economies towards viability...  Economic Opportunity / Incentive zones for instance.  This represents a macroeconomic policy that enables an economic upward shift....It does not ensure it, it enables it.

I feel we as a country are running towards another Great Depression.  We are tinkering with free market dynamics storing latent defects within it that are not fully understood by the many.  Training in advance of a market meltdown is needed to be able to solve the problems that await us.  Strategically organizing now is needed to better prepare for a faltering market that awaits us.

Challenge, discuss, add to this line of thinking so we can all benefit from the accumulated group think shared.

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  • Suzanne PlayerPro Member
    Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
    5y

    I agree - there is too much to know, we have to work with professionals with skills in their area.   Just a short conversation with a mortgage pro, attorney or insurance broker can be extremely valuable - they will often teach us things we wouldn't know to ask about ("you don't know what you don't know").

    We also have to be careful about "irrational exuberance" and consider the potential downside to the markets.  We could have another 2008 about to happen.  Back then what I couldn't get over was the fact that no one was talking about financial literacy - only 17 states required a course in the high schools at the time.  I don't think it's much higher now.  We have to teach our own kids, because the schools generally won't.  Trigonometry, they teach.  But not how compounding interest works!

  • Real Estate Consultant · San Antonio TX Canyon Lake TX Fort Walton Beach FL Cape Coral FL Clarksville TN Sumter SC and Lawton, OK · Member since 2008 · 138 posts · 128 votes
    5y

    Irrational exuberance and eternal hopefulness have no place in any form of investing.  When seen in quantity they should trigger a classic Warren Buffett'ism "when people get greedy I get scared--when people get scared I get greedy

    "

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