There are several different parts that make up a successful operation for a real estate investment trust (REIT). As firm believers in enhancing the communities we live in and offering our investors attractive, stable returns, we know that the team we work with on each property acquisition and renovation have to be the right fit for our ethos.
It helps to think of a REIT team as the team that helps get a plane off the ground; it’s not just the pilot who gets you where you need to go; it’s the flight attendants, the aircraft engineers, the passengers, and all the other assorted professionals who come together to ensure that the flight takes off and makes it to the final destination.
In our REIT, think of the pilots as the management team, and the passengers as the passive investors. They’re all going to the same place, but they have very different roles in the process. If there is an unexpected emergency, if a bird flies into the engine or the landing gear gets stuck, the whole team trusts in the pilot to take charge.
If you can remember the last time you were on an airplane, you’ll probably also recall those in-flight updates you’d get from the cockpit . Something like, “This is your Captain speaking, we’re skirting the edge of a storm so it may get a little bumpy …”. Thankfully the pilot isn’t expecting the passengers to jump up and take any action, they just have to put their faith in him or her and trust in their knowledge, skills, and experience to manage the situation.
PPT works by deploying investor capital into new projects that continue to build on its portfolio returns, and our whole team — passive investors, management, brokers, and property managers — pull together to achieve a shared goal.
In this article, we walk you through who makes up the team behind our REIT and share details about each of their roles in the process.
Real Estate Investment Trust Team Members
Here are the key roles that come together to make our real estate investment trust successful:
- Real Estate Brokers – Premium Property Realty
- Property Management – Premium Property Management
- Construction Management – Blackstone Construction
- Architecture & Design – Christopher Architecture & Interiors
- Passive Investors – PPT Partners Shareholders
- Real Estate Investment Fund – Premium Property Real Estate (PPT)
The Real Estate Broker
The real estate broker is the person or team who surfaces the property for sale, either as a listing or as an off-market opportunity (i.e., not publicly listed).
Having a strong real estate broker is crucial, as they are the main liaison between the buyer and the seller throughout the acquisition process.
Once the property has been acquired, the property manager becomes arguably the most important partner in the project because they are the “boots on the ground” who execute maintenance or one off renovation projects according to the business plan.
The property manager works closely with the operator (i.e. the asset manager) to ensure the business plan is being followed and that any unexpected surprises are addressed properly. Property management is also responsible for marketing, tenant services, and building management.
Whether we’re designing and building from the ground up or renovating a property in decline, the construction management team is on site managing every stage of the project.
They build trusted relationships with city planners, inspectors, subcontractors, and vendors while ensuring each aspect of our sustainable design is properly executed at the appropriate time.
Architecture and Design
With an award-winning design team (Christopher Architecture and Interiors) built into our vertical integration model, we have a trust efficiency that reduces both costs and delays throughout each project. We experience reduced revisions, realistic design intentions, and ease of communication between the architects with the vision and the contractors tasked with making that vision come to life.
Our trust-based approach develops longstanding relationships throughout each vertically integrated partner, reduces unnecessary errors, and helps all parties respond to challenges with a singular goal.
A real estate investment trust’s passive investors have no active role in the project. They simply invest their money in exchange for a share of the returns. Like the passengers on an airplane, they get to put their money in, sit back, and enjoy the ride.
Premium Property Trust
As the asset manager of the fund, our role is raising the necessary capital, analysis and acquisition of each deal, working with the property manager on each property, and distributing fund income to investors in the form of a dividend.
We also serve as an advocate for investors by ensuring that the projections are conservative, deals are structured favorably for investors, and that investor capital will be grown for both the benefit of investors and fund managers.
Building a Successful Group Investment
A real estate investment trust is set up as a group investment, which is its beauty and strength. When the whole vertically integrated team works together and has a shared goal and mission, they’re more likely to make the trust (and every property inside) profitable and successful.
Above we’ve detailed the most visible team players, but there are several more people involved in the process of setting up and managing a fund. On our real estate trust team, we also have inspectors, appraisers, cost segregation specialists, CPAs, a legal team, and insurance agents who all play a huge part in bringing a property’s vision to fruition.
There are many professionals involved to execute on our vision and each and every one plays a vital role in the journey.