find great real estate operators is the focus of this guide for passive real estate investors. First, it highlights the main idea behind the topic. It also outlines the risks and questions worth reviewing. As a result, you can approach the discussion with a clearer framework.
What to know about find great real estate operators
In today’s economic environment, it can be overwhelming to find high-quality seasoned operators to invest your hard-earned money with.
And if you are just starting out as a passive investor, the issue is compounded since you are also learning how to set your investing goals, vet operators, vet markets and underwrite deals.
At PassiveInvesting.com, we strive to be your one-stop shop for real estate assets. We also know that diversification of your operators is a must as you scale your passive portfolio. Therefore, no matter if you are starting out or a seasoned investor, you must have a system in place to find high-quality operators.
Where to Find High-Quality Operators to Interview
There are many ways to find an operator, but there are only a few ways to sort out the high-quality operators that you really want to (let’s admit, should) partner with.
My favorite way to connect with operators (as well as like-minded investors) is to attend high-quality, in-person real estate conferences. Look for real estate conferences that have over 500+ attendees and (to be blunt) have a higher entrance fee to attend. A couple of my favorite conferences to attend are MFINCON (Multifamily Investor Nation Convention), and Best Ever Conference. At conferences like these, you get to shake hands with high-level operators, learn new skills and investing strategies, and build new relationships with like-minded investors!
This leads to my next favorite way to build my investor network: connect with other successful investors who are willing to share their expertise and investor network with you. This not only helps you build community, but you also get direct investor feedback on operator performance and potential access to operators who are more on the institutional level. While referrals are powerful, keep in mind that a referral should never replace proper due diligence on the operator or the deal.
Another way to build an investor network is to join a third-party passive investing group. Like conferences, there are many investor groups out there, but only a few are high level and drive results. There are several groups available where investors gather, like CrowdFund DD, Left Field Investors, and For Investors/By Investors (FIBI). These groups generally have an application process to join and an annual subscription fee.
Another strategy is to simply conduct an online search for syndication groups. While this could yield a plethora of operators to sift through, it can be hard to discern the quality of the group, the quality of the deal, and even the true relationship that the operator has in the deal (maybe they are just stellar marketers). This is where you must have a comprehensive operator vetting process, which includes interviewing the operations team directly before investing. Otherwise, you will have a very crowded inbox of deals that may not meet your investing goals. (Check out my Passive Investing Made Simple Masterclass on How to Vet an Operator on YouTube).
Lastly, scout out online real estate forums and meetups. This is my least favorite way to find high-quality operators, as they rarely spend much time in these smaller groups. However, online forums and meetups could be a decent way to find like-minded investors to surround yourself with, such as our MFIN Meetups and Passive Investing Made Simple Masterclasses and Happy Hour Events.
Wrapping Up
One of the biggest mistakes I see passive investors make (especially newer investors to the space) is that they are looking for a shortcut to finding a deal they skip the most vital step in mitigating any investment risk and that is investing with the right TEAM. In short, you are betting on the jockey, not the horse, and taking care to find the best operators to invest with is the number one way to protect your capital and generate long-term wealth.
Key takeaways for find great real estate operators
- Start with the goal and timeline that fit your wider financial plan.
- Next, review the assumptions, risks, fees, and possible outcomes.
- Finally, compare the opportunity with other ways to use your capital.
Put find great real estate operators in context
Key considerations
Every investment decision depends on the investor, the deal, and the market. Therefore, use the ideas above as a starting point for deeper due diligence. Review source documents, ask direct questions, and seek qualified advice when needed. For more guidance, explore our passive real estate investing education.
A concise decision checklist
- Start with a clear goal.
- Review the main risks.
- Check each assumption.
- Compare the likely outcomes.
- Ask direct questions.
- Confirm the key facts.
- Start with a clear goal.
- Review the main risks.
- Check each assumption.
- Compare the likely outcomes.
- Ask direct questions.
- Confirm the key facts.
- Start with a clear goal.
- Review the main risks.
- Check each assumption.
- Compare the likely outcomes.
- Ask direct questions.
- Confirm the key facts.
- Start with a clear goal.
- Review the main risks.
- Check each assumption.
- Compare the likely outcomes.
- Ask direct questions.
- Confirm the key facts.
- Start with a clear goal.
- Review the main risks.
- Check each assumption.
- Compare the likely outcomes.
- Ask direct questions.
- Confirm the key facts.