Archive for Property Management
Good News Friday – Ranking the Cities
Posted by: | CommentsGreetings from New Mexico….
Check out Robert Bach’s latest post on city rankings. Where does your city rank….chances are…you can find it here…..cheers….rob
http://myemail.constantcontact.com/Ranking-Cities.html?soid=1102184413218&aid=h4SPz0bJUfE.
Tips for Choosing a Property Management Company
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Me and Jesus....well...not really...at Compassion International in Colorado Springs
Greetings from Santa Barbra, CA….. rainy and gloomy….but the hope for sun tomorrow.
Anyway….
Here in CA to rub shoulders with the folks of Yardi Software and to checkout the sites. The rain has not stopped me….
Before I arrived in CA….I was in Colorado visiting my mentor Wes Roberts. So….I have been on a mini-travel marathon of sorts….next? ….D.C.
Today’s topic is property management. Specifically, hiring a property management company…..
Over the years, I have learned the hard way about property management. In reality, good property management is difficult to find. More specifically, “okay” property management is a gem if you find it. I know… I know…I may be going a little overboard….but I digress.
So….I was thinking….what makes a good property management company (PM)…for both commercial and residential assets…..and here is my list….very short….but enough to give you some thought….
1) A PM needs to have a solid understanding of the asset being managed. In other words, does the PM know how to manage a retail shopping center, or a large apartment complex, etc. You see, just because a PM has managed an apartment before…does not mean he or she knows how to managed a 100 unit apartment or a 500 unit apartment. Take a look at the portfolio the PM is managing currently and see where the PM’s experience is. If you want a PM to manage your storage units and the PM’s experience is only in residential homes….you have a big red flag
2) A Good software system. If your PM is using Microsoft Excel to manage a portfolio….you should run. MRI, Yardi, etc….are great software programs that offer clients a lot of bells and whistles. Make sure your PM is using solid systems because…PM reporting, accounting, etc…. is depending on it.
3) Turn-around times a.k.a., “make-ready” time is crucial. PM that are slow at turn-around times when a property goes vacant and the time it takes to get ready for the next tenant is crucial. Whether you have a waiting list or no list at all….having units available quickly will help your bottom line. Find out how fast your potential PM is turning things around by asking other clients what the turn-around time is. If you hear ten business days…then that is too long. One week is the most I can deal with. I like to hear three days. Obviously there are other factors that go into turn-around time…but the shorter the better.
Santa Barbra, CA
4) Communication. Another difficult thing I have learned is if you are having a hard time connecting with the PM….you are probably getting screwed. No return phone calls…..reports have not shown up……etc. Especially for long-distance properties. Talk to the PM’s other clients…ask what the communication is like. Knowing the communication process and how others perceive it will save you a lot of headaches.
5) Network. Talk to other owners about which PMs they use. Ask a ton of questions…how long? What types of assets do they manage? etc. I always like to get a perspective from other investors and see who they recommend. Does it always work? No…but….it is better to get a short list from people you know vs. starting cold.
Anyway…I could go on and on….and I am sure I will on another post….
Until next time……rob
Apartment Investing – Closing in on Another One
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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