Apartment Investing – Closing in on Another One
By
Who is on your team?
Greetings from the metropolis of Cedar Crest, NM….
Just got off the phone with my mentor, Wes Roberts, and a feeling of “simple direction” has come upon me. It is good to have a mentor. Wes is what I would call a “life coach.” We are all willing to have coaches and mentors for different areas of our life….except for our “core”…why is that? Well…I am thankful for Wes.
By the way….
You can find out more about Wes @ www.WesRoberts.com
Anyway….
So…we are honing in on our next asset acquisition. A small multi-unit apartment complex in Texas. I can’t reveal a whole lot about the deal. But the earnest money goes hard in the next few days and there is not much in the way at this point. But you never now in this game. I guess I am trying to put a hex on the deal by writing about it….. 
So…..
Buying and managing commercial real estate is a team effort. I am not talking about partners although the usually make up part of the team. The post today focuses on key players that are a big part of the transaction. From you mortgage lender to your property manager….to commercial real estate consultants. So….here is my team…..no holding back.
Commercial Mortgage Lender:
Terry Painter @ www.businessloanstore.com is by far the man I go to to my real estate needs. I have had good friends that own mortgage businesses that tell me “straight up” they cannot beat his terms. I do challenge his rates and 9 out of 10 times….Terry is right on the money. Plus I love working with Terry. He is just a great guy….
Honerable mentions:
Karla and Scott @ www.lyngvarfinancial.com are a great team. Karla handles the residential mortgage side and Scott deals with the commercial side of things. I love these two….great people.
Property Management Companies:
Jaxon Texas Property Management – www.JaxonTexas.com: yes…I am bias. I use Jaxon for all my property management in West Texas all the way to Albuquerque, NM. Ask me why I am biased and i will tell you the truth…lol.
Wigland Omega @ www.weigandomega.com. By far the best multi-unit property management company I have ever dealt with. A couple of years ago we were coming off a horrible experience with a property management company that costs us hundreds of thousands of dollars. Weigand Omega, with the help of our asset management company and our consultant (talk about him later), turned the property around and the investment has recovered and doing well. A bad property management company can put you out of business. Be sure to check out our free while paper on how to choose to property management company by registering. Also…If you are getting ready to hire a property management company in Dallas….there is one to stay away from….comment on this post and I will tell you who it is.
Asset Management…and the bookkeeping:
Yes…there is a difference between Property Management and Asset Management. What is the difference? I will take another post to explain…but Rachel Cornella from True North Asset Management is my asset manager. Basically….she manages the property managers and the bookkeepers. Making sure they are hitting their goals and making sure they are doing what they are supposed to do…..as well as reviewing the books for each property. True North offers both asset management and bookkeeping services.
I highly recommend Rachel Cornell @ www.TrueNorthAssetManagement.com
I use YARDI. Yes…there are others….but….YARDI is basically an industry standard. Specifically….I use YARDI voyager. A web-based software which means…I do not have to host it on my own servers. I log on and roll. Yes…it is expensive…but worth it. At least for now.
Real Estate Investment Consulting….
Roger Maupin and I have been partners for a while. One of the things Roger loves, other than sailing and his family, is digging into the details of a real estate asset. I have never met some one who can uncover extra ways to generate cash flow as well as hidden problems with an asset. I also have seen Roger in action when it comes to turning a property around. A couple of years ago, Roger Maupin jumped into the trenches with Rachel of True North and Weigand Omega to turn around a multi-unit investment in North Texas. It was amazing. So….obviously, I highly recommend Roger for your commercial real estate consulting needs. Especially if you are buying or trying to turn your property around.
You can reach Roger at:
roger@rogermaupin.com.
Investment Analysis
Investment analysis is probably the most important skill to have. But most people don’t have the knack for it. But Steve is one of the best. Overall Steve is a solid investor….but his gift is investment analysis. I use Steve every time I am about to buy a property. And every time, he finds something I missed. Steve is great at identifying the real value of an asset based on passed financials as well as uncovering those small items that sellers try to cover up.
You can reach Steve at: steve_maxwell@comcast.com
Due Diligence Company
Per the strong suggestion of a friend of mine, I used Red Advisors (www.RedAdvisors.com) to do some preliminary due diligence on a 400 unit complex I was working on. Not only did the preliminary work blow me away….but also verified Steve Maxwell’s analysis on the property. A one-two punch and that deal died on the table. If you are interested in buying a 4oo unit apartment complex in Dallas Texas….contact me so I can give you the details and prevent you from becoming a victim…..Yes….I am serious.
Well….I will have more recommendations in the future. If, by some chance any of the above let you down…I want to hear about it…but I am sure you will be happy with the service you get from my teammates above.
Until next time……rob