How to structure a real estate business

Question

I don't intend on building out my business just yet, but when I get ready to I would like to know beforehand what I'll need it to look like. What kind of/how many team members are needed to create a real estate business that can function without its founder?

Kevin Siedlecki · Answer

@Kevin Bynum - It depends on what you mean by "function," and what kind of activity your business is going to do. Right now, my rental business can function without me - if you consider making money on a current portfolio "functioning." All that takes is paying a property management company to run the day-to-day. If I chose to, I could go months without talking to anyone or thinking about real estate.

That's not my idea of my business functioning, though, because part of my business activity is acquiring more property to grow that portfolio. I don't plan to get big enough to have that part of my business done by someone else, nor would I ever trust anyone besides myself with such big decisions about my money.

Hope that helps. Please follow up and let us know what you're planning to do. I'll be curious to hear what systems other people have in place for getting their business to function as much as possible without them.

Kevin Bynum · Answer

@Tim Puffer funny you should ask. I'm currently reading "The E-Myth" and so while I'm only working on my first property right now, I thought it might be a good idea to have a vision of where I would like my business to be someday. But I understand where your coming from.

@Kevin Siedlecki for me, I would like a company where even acquiring new properties can be a hands off thing. What comes to mind for me is a business owner I used to work for who owned a franchise. He would come in every now and then and work a few shifts or help with training but he always had the option to just never show up and things would still run smoothly. It's not that I don't WANT to be a part of it, I don't want to NEED to be a part of it.

Tim Puffer · Answer

@Kevin Bynum - Do you have any deals yet?? If not, don't worry about a business structure - worry about getting a deal and the rest will follow.