Legacy Capital Co-Founders, Doug Fath and Jeff Greco, discuss the 3 pillars of a real estate business owner. Click the video below to watch now.
|Hi, so in this video we’re going to be talking about the three pillars for a real estate business owner. And this is something that we talked about often with our clients in terms of really how to view the real estate business and review it in three parts. I’ll draw a little triangle here.
|Exactly, so we’ve got deal flow, capacity, and then capital. And so our clients are primarily coming to us for capital. That’s where we initially start the conversation, funding deals for our clients. But what it usually ends up developing into is a much larger conversation about the business, because they come to us thinking they need capital, which is one piece of what they need, but they also need to take into account deal flow and capacity.
|And that comes into consideration when we start to have conversations with our clients about what are their goals for the year, what do they want to accomplish. And usually, what people always say is, as long as I had the money, I would be good. And what we know to be true is that money is really the easy part to solve for, right? So if you hypothetically had a blank check for a million dollars, how many deals could you do? But more importantly, how many houses can your team handle at one time? How are you sourcing deals to make sure that you have enough deals? Capital is pretty black and white as long as you’re finding good deals and you’re team can manage them. But really, without one part of the triangle things don’t work and they fall apart.
|So really, for a successful real estate business, you need to have all three things covered; deal flow, capacity, as well as the capital.