Structuring Your Real Estate Team and Offering Incentives
Structuring Your Real Estate Team & Benefits of Offering Incentives
Building and managing a successful team is crucial for any real estate investor looking to scale their business. In this blog post, we learn about the team structure and compensation plan of an experienced investor who recently closed a deal in Indiana.
The investor explains that their team consists of three members:
- A lead manager in the Philippines
- A project manager in California
- A local acquisition manager in Indiana
They recently downsized their team to focus on what’s working, which has resulted in a more efficient operation.
The lead manager is responsible for following up with leads, setting up campaigns, making outbound calls, and taking inbound calls. In addition, they work with a VA company called Rocket Station to build out their system, which includes ringless voicemail and other features. The lead manager receives $50 for every contract that the team closes, and they are paid $5 per hour for full-time work.
The acquisition person, who is also an agent, makes good money on the listing side of deals. The project manager manages most of the rehabs, and their first exit priority is to turnkey the properties. After factoring in interest costs, the project manager receives 10% of the net profit. They only receive a commission if the profit is more than $15,000.
This compensation structure incentivizes everyone on the team to do as many deals as possible and to maximize profit. The investor has set up a separate bank account for the team, and the project manager makes all the payments. The investor’s bank account is linked with REsimpli, a real estate investment management platform, which enables them to monitor the financials of their operation.
This team structure and compensation plan provide a great framework for any real estate investor who wants to build a successful team. By incentivizing the team to maximize profits and streamlining operations, this investor has been able to focus on what’s working and scale their business. As a result, they closed a recent deal in Indiana, which is a testament to their success.
Finally, building and managing a successful team is crucial for any real estate investor who wants to scale their business. The investor’s team structure and compensation plan in this transcription provide a great framework for any investor who wants to do the same. By focusing on what’s working, incentivizing the team to maximize profits, and streamlining operations, the investor has been able to build a thriving business.