What are the four essential roles every successful multifamily real estate investment team needs to have, and how can you identify which role best suits your strengths?
In this episode,Matt Faircloth breaks down the four critical roles every multifamily real estate investment team must have to achieve success. He explains that these roles are the Hunter, the Analyst, the Money, and the Hammer. Each role plays a vital part in finding, analyzing, financing, and managing deals. Matt emphasizes the importance of self-awareness and understanding your strengths and weaknesses when assembling your team. He also discusses the possibility of having team members wear multiple hats and how these roles can evolve into divisions as your company grows. Additionally, Matt shares his experience with his first 10-unit apartment building and his current 336-unit deal, demonstrating the power of scaling up with the right team in place.
Matt Faircloth has been a full-time investor since 2005. In that time he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings.
He has completed over a Hundred Million in real estate transactions and controls thousands of units of multi family. He is a regular contributor and podcast guest on Bigger Pockets.com, has an active YouTube Channel dedicated to educating investors, and the author of the Amazon Best Seller, Raising Private Capital, how to Build your Real Estate Empire with Other People's Money.
00:00:00 - 00:02:00 The Four Essential Roles of a Multifamily Investment Team
- The Hunter: Finds and secures deals
- The Analyst: Lives in spreadsheets and analyzes deals
- The Money: Attracts investors and assembles financial wherewithal
00:02:00 - 00:04:00 The Money's Role and the Importance of the Hammer
- The Money explains complex concepts simply to investors
- The Hammer drives the business plan and ensures success
- All four roles are necessary for a successful investment
00:04:00 - 00:06:00 Assembling Your Team Based on Strengths and Weaknesses
- Identify which role speaks to you the most
- Find team members who complement your strengths
- Roles can overlap, but separate as the company grows
00:06:00 - 00:09:00 Additional Team Members and Matt's First Apartment Deal
- Other essential team members: brokers, attorneys, property managers, etc.
- Matt's experience with his first 10-unit apartment building
- The importance of disclosing unique property features to tenants
00:09:00 - 00:13:00 Scaling Up to Larger Deals and Increasing Returns
- Matt's current 336-unit apartment complex deal
- Adding amenities and upgrading units to increase rents
- Achieving high cash-on-cash returns through simple improvements
Quotes:
"If you are self aware, if you take personal inventory for yourself, and if you have the courage to look at your strengths and also your weaknesses you can assemble this for yourself and figure out where you sit on this bus." - Matt Faircloth
"As much as your ego may tell you, you can do all this stuff yourself and you're good at everything. You may not be, you might need a team around you that can help you do some of the awesome, some of the awesome stuff that needs to happen in real estate." - Matt Faircloth
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