Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How not to build your team

3 Oct 2021 · 2 min

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1:49

Christian Osgood and Cody bought a 38-unit apartment building in Moses Lake, but the closing got delayed six hours when the seller's lawyers found gaps in their LLC agreement. They learned two things: hire attorneys and accountants who actually invest in multifamily real estate, not friends-of-friends, and never schedule closings on Fridays.

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Hey YouTube, this is Cody. I'm back with Christian. We are not doing corporate versus entrepreneur today, but we're gonna be going over a lesson that we learned. And well, it's really a couple lessons. We were supposed to be in Moses Lake today with our name on title for a 38-unit apartment building. That got pushed to Monday. Closing got pushed for a couple reasons. We're gonna take responsibility for it and share with you today why we are in fact not in Moses Lake. And we are at Christian's house building a shed.
Yeah, unfortunately we got to title and we had the lawyers at the last minute reviewing docs, which was unfortunate in and of itself. However, they—
Seller's lawyers.
Seller's lawyers, yes, of course. For us, we had a couple of holes in our LLC agreement that they were not able to work with. So instead of getting a sign, we had to go all the way back and wasted about 6 hours of driving.
That said, we're creating this video to say be willing to spend the money up front to be with the people who actually own the real estate. We ended up going with an attorney who doesn't own any multifamily real estate. He used to. He was a mutual contact to someone, and so while it's fun to use friends of friends that are in the business, make sure you're using the folks that actually do this every single day. Don't just go off of a recommendation. Make sure you're talking with the people that own the type of buildings or own the type of business that you want to be operating in.
Yeah, exactly. I think the two lessons there are: don't use a friend of a friend just because you know them. Work with the best. And if you're investing in multifamily real estate, your accountant, your lawyer, your team, they should all be fellow people who invest in multifamily real estate.
Also, don't set your closing for a Friday.
Oh my gosh, we have learned that. Give yourself time. Put your closing in the midweek. Wednesdays are great.
That said, today is a very informal video. We're just doing a one-shot, one-take. But let us know if you learned anything from this, and don't make the same mistakes we did. Bye.