Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties

Building a Team

Acquiring real estate requires the employment of experts in several areas. The seasoned professional real-estate player assembles his team prior to an acquisition, so when the opportunity arises to acquire the “right” property, he is prepared to execute. For any given acquisition, all of the team players may not be needed, but having them as resources is key, so if and when they are required, you will be prepared to move forward and close the transaction.

The key players on the team consist of investors, lenders, a certified public accountant, and an attorney. These are the core players. The investors bring the equity to the table, the lenders bring the debt, and a CPA and an attorney bring the expertise to assist in structuring and documenting the transaction. On the team in a supportive role might also be a sales agent, a mortgage broker, an appraiser, a due diligence expert, a company that prepares environmental reports (such as a Phase I and Phase II environmental surveys), a structural engineering company that can calculate a seismic study reflecting the maximum probable loss, a title company, a surveyor, an escrow company, and a defeasance firm that can purchase securities as substitute collateral.

A firm that generates a property condition report or a licensed inspector may be helpful in identifying problem areas. Often, if areas of concern are identified, it is necessary to hire a general contractor and/or a specialized subcontractor to address the issue ...