Prop Managers W/ Repositioning Experience

[Tj Hines]

I wanted to know if anyone in hear can provide some tips on how to get in contact with property managers that have repositioning experience in a specific market you're targeting?

[Matt Clark]

I'd suggest Craigslist and also going to a few local apartment association meetings.

[James Kojo]

When I’m starting in a new market, I call up all of the major PMs I can find, and I have a list of questions to ask them. 

One thIng I ask about is their biggest rehab that they've done on a MFR and how they go about doing it.

Many will have in house teams that they use for medium sized rehabs (counters, cabinets, floors etc) and they will contract out for specialties. Some go All contractors and mark up the price for their project management.  Some just charge an hourly rate for project management. 

Once you show them that you plan to stick with them after the acquisition, they are usually happy to provide you with initial guidance on the property. Though many will ask to represent you in the acquisition. I think that’s fair if they find you the deal. 

Hope that helps. 

James

[Andrew Campbell]

I have found the local business journal will usually have a list of the top property managers (based on volume).  I usually buy that report as use it as a starting point, then start to do research on the companies and start calling/interviewing them as @James Kojo suggests. 

Good luck!

[Tj Hines]

@Matt Clark Will look into these Apartment Association Meetings. 

@Andrew Campbell Local Business Journal ... Is this something that I can pick up for free or do I have to subscribe to it?

Thanks

[Account Closed]

I don't think that handing over all aspects of re-positioning to a management company is a good idea.

1. Most management companies have make ready crews, and those do par workmanship at best. (unless an A+ property and even then...)

2. As mentioned above most will just get quotes from outside contractors (whoever they find on C.L.) and then give you the most expensive ones, and add a fee. You lose control over the material and trade selection in doing it that way. 

3. Most management companies do not keep up with current codes, or materials that will best serve your needs long term and save you in differed maintenance, as well as turn arounds i.e. make readies.

4. Any snags or interruptions in the planning or execution of a project like this could ultimately cost you tens if not hundreds of thousands of dollars. "Management" companies are not set up to problem solve on construction projects dealing with trades that they don't understand doing a process they are unfamiliar with.

My suggestion is to hire a local consultant who you can pay a flat fee to analyze the project, meet with designers, trades, inspectors, engineers, etc, in order to put together a package for you that will detail; budgets, material grades, scope of work, timelines, trade suggestions, sample paperwork to ensure no liens or permit issues occur, etc. 

This does cost money, and I know most don't really wanna invest in their investments. BUT, the ROI is insane if you really take the time to crunch the numbers in having that kind of knowledge going into a project and allowing you to have full control.