The Pace Morby Method of Structuring Your Real Estate Investing Business
I get a lot of questions about how I’ve structured my businesses, which is great because the best thing you can do is make sure you have an actual business.
Now, I do a lot of creative finance – I’m known as the creative finance guy – however that’s only a portion of my real estate business.
I do just about everything when it comes to real estate, so it was important that we set up our business in the right way.
Check out how I structured my business in the video below:
How to Structure Your Real Estate Investing Business
First things first – before you do anything else, you need to set up your business as an LLC.
An LLC is a limited liability company, which gives owners liability protection, a flexible management structure, and tax advantages.
That’s a definite must before anything else. If you don’t know how to create a business LLC, then head over to our partner Prime Corporate Services and they’ll get you hooked up.
You’ll see in the video that I have three businesses, which each have an LLC attached to it, with my buy and hold business actually having 50 LLCs assigned.
Guys, I can’t stress enough the importance of getting an LLC.
This is your business and you want to ensure that you have a name, bank account, and email that reflects that.
Do not use your personal bank accounts or personal emails!
Once your LLC is set, then you need to start doing business and for us, that means getting leads.
There are a few ways:
Direct to Seller marketing
Joint Venture or brand deals
I talk more about each in the video above, but as a quick summary:
Direct to seller marketing includes talking directly to the seller about a property.
JV or brand deals are where someone brings a deal to me or my team to work with them.
Referrals are when someone we talk to – either another wholesaler, a realtor, or even a seller – refers us to other people.
For each of my businesses, I have a team of people that help with the overall day-to-day activities, so let’s check that out.
Building Up Your Business Team
I have a fantastic team of people that help make each of my LLCs run smoothly and successfully.
While each business is a bit different, I pretty much follow the same structure when it comes to my team:
My business partner, Cody.
My operations manager, Molly
My wife Laura, who is just great at finding a lot of leads
My virtual assistants at Smart Virtual
Acquisition and Disposition team
I also have a project manager – Ana – who has been working with me on my fix and flip business for 8 years. She runs two teams on this particular business.
Lastly, we have a bookkeeper – Tori – who handles all of the accounts, financials, paperwork, and more on the buy and hold side.
Now, one of the basic things I teach in my Subto course is squading up with people; by that, I mean, partnering up with others in the course.
I have real estate beginners, seasoned investors, and those who are in between as student members, meaning that there is a wealth of knowledge in each of these groups.
There’s more information than I could fit into one video, so make sure you’re subscribed to my YouTube channel to get more in this series.