Growing a Team to Reach $3 Billion in Real Estate with Keith Wasserman

Passive Wealth Strategy Show - Real Estate for Busy Pros

From starting with equity over cash to scaling a $3 billion real estate empire, Keith Wasserman reveals the art of team-building and the seismic shifts in the property market since 2008. Join us as he discusses his journey from starting with just his cousin and business partner to now having a fully staffed team. Keith shares his approach to hiring and compensating staff, which was focused on giving personnel equity rather than cash due to a lack of funds in the early days. He also talks about the current real estate market since 2008, with values dropping drastically in the apartment space and even more in specific office spaces.

[00:00 - 07:03] Building a Successful Real Estate Team

• Introducing Keith to the show
• He built a team, scaled it up, and thought about compensating all the different team members to incentivize them to stay and perform
• The team identified the right people to put in the right places as they continue to grow the team

[07:04 - 15:17] Hiring, Firing, and Identifying Gaps in the Team

• Pay people based on how invaluable they are to the organization
• Give equity to employees once they prove themselves and earn it
• Rely on a team to know who is needed to get the job done as best possible
• Aim to stay lean and scrappy

[15:18 - 23:16] How Investing in Apartments Changed During Turmoil in the Markets

• Suburban office values have been "torched," and CBD office values have seen "value destruction"
• Rents are still seeing growth, but it has slowed down in specific markets
• Long-term rates are declining, and inflation is under control

[23:17 - 28:39] Closing Segment

• Best investment: Keith's wife
• Worst investment: buying a portfolio of mobile home parks
• The most important lesson learned: building a reputation and having the right partners

Quotes:

"We realized we needed to bring on some more 'the gray hairs'; someone with experience, someone that had a bigger balance sheet that could sign on loans." - Keith Wasserman

"It's tough to delay gratification, but we try to keep it lean and mean for the most part. That's the way we're going to be very wealthy is just holding these things long term." - Keith Wasserman

Connect with Keith!

Twitter: www.twitter.com/Keith_Wasserman

LinkedIn: https://www.linkedin.com/in/kewasserman/

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

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