July 7, 2021

The 5 Things You Need to Build a $1,000,000+ Rental Portfolio (Ep: 483) | BiggerPockets Real Estate Podcast with David Greene & Brandon Turner

“Divided 5-ed” strategy – To grow your rental property portfolio you need five team members: a lead generator, underwriter, money raiser, asset manager, and a bookkeeper
- If you can’t be a team leader, be a team member
- “If you’re going to start your own Apple, you probably need to work for an IBM first” – David Greene
- Don’t assume people hate the same tasks that you do
LAPS funnel – leads, analyze, pursuit, success
- Lead generation is the most important as growth can’t happen without new deals
Underwriters match opportunities to your portfolio’s growth and investment strategies
- “Take chaos and create order” – David Greene
Relationships between bookkeepers and asset managers can be vital to connect the numbers to action items
An asset manager is different from a property manager. An asset focuses on maintaining the wealth of the property rather than the daily operations

Co-hosts of the BiggerPockets Real Estate Podcast David Greene (@DavidGreene24) & Brandon Turner (@BrandonAtBP) follow up their discussion on the “Core 4” of starting your solo real estate portfolio with an episode on the “Divided 5-ed” strategy based around the five team members you’ll need to scale your rental property portfolio to new new heights: lead generator, underwriter, money raiser, asset manager, and a bookkeeper
- For more about BiggerPockets Real Estate Investment (@BiggerPockets) community and process, check out their website

Start with your end goal in mind: apartment complex, mobile home parks, vacation rentals, etc.
You have to buy a product big enough to support your “divided 5-ed” team
- Scaling is hard when dealing with individual properties. Multi-unit deals are necessary for scaling.
Bigger deals help you get more leverage in all areas of business operations
Scaling allows you to focus on the aspects of real estate that you enjoy and outsource the rest
- Don’t assume people hate the same tasks that you do
- Some people love working with numbers (bookkeeper), while some people like working with people (lead generator and money raiser)

LAPS funnel – leads, analyze, pursuit, success
- The top of the funnel is very important
Deal with commercial brokers rather than real estate agents for large scale opportunities
- Reputation matters a lot more with these deals, money doesn’t talk as much
Lead generator characteristics:
- Highly motivated and extroverted
- Good understanding of human nature. They know what makes people respond and adjust to personalities
- Person of influence, large network
  - “most popular person in high school”
- Process-oriented- ensures completion of the grunt-work and action oriented tasks

Underwriters analyze the numbers to see how much you can pay on a property
Functions as a filter: eliminate properties that don’t work and highlight the details of the properties that could work
- “Take chaos and create order” – David Greene
Have a system on how to identify a good deal for your portfolio
Due diligence person – reviews all documents, leases, taxes

Also known as Investor Relations
- Needs to be comfortable with phone calls and stay in constant contact with investors
- A large amount of capital is necessary to obtain a commercial rental portfolio of scale
Bank person: someone who has the patience and knowledge to deal with the slow and technical processes involved with banks

Handles the finance and accounting of properties
Protects the investment and investors. Checks and balances are important for consistent communication and thorough investment updates

Maintains the asset after the deal is closed
Thinks more bigger picture than a property management: makes sure growth and returns are maintained on property
- Calls for action: advertising campaign, find new property managers, etc.
- Partners with bookkeeper to compares numbers to market trends