How to Structure a Real Estate Investment Company So You Can Scale Your Business

With Ed Rogan, Co-Founder

So we basically structured our business in two tiers. You have the fun management business and then you have the asset management business and we break those up in order to segregate the different activities and to differentiate the different processes involved, because they are two different sets of responsibilities, sets of activities and performance metrics we need to track.

So the fun level or the corporate level is basically everything from the partnership work or fund level up. It's where we kind of have all of our admin processes set up to where we track all of our KPI's. It's where we hire our staff, things like that. Then you have the property manager, the asset level management, which consists of their property management teams, the construction management teams and basically the construction we have a hierarchy of management where we have an asset manager that oversees all property and construction related operations. So the property team that works on the site and the construction team that works on the ground reports to her. She is the head of the portfolio management, and then she reports up to the principal owners at the corporate level. And, you know, we. So there's only three levels there. The corporate level principal owners, the property or portfolio manager, and then the individual property and construction managers. But it's just it's been a way for us to keep organized with regard to how we file documents, how we manage are accounting systems, how we manage because the accounting systems need to be separate.

You can't have the same accounting system that you're using to track your transactions at an individual property has to be separate from the accounts of the portfolio or a fund or partnership. It has to be an account that's separate from the accounts of the investment advisory side of the business. So.

It's able it's able to create organization that without it would be much harder to scale. And it allows us to actually set up an organization built for scale.

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