Buying an Owner-Managed Property

Nothing can replace just reaching out to brokers and we set quite a high activity for reaching out to new brokers about a year ago. And this deal came across, but it was marketed by an out of state broker, at the point when we first identified and engaged on the property, we had just had an L.O.I. excepted on our first property and the L.O.I. that we had accepted was in the Tulsa MSI as well. We've got updated numbers and the seller was self-managing, so that was also part of the issue, the accounts under managed, so a lot of spreadsheets and I'm still about probably three inches of utility bills stacked up on the desk behind me, so a lot of manual work went into it, but it was on market and just got in touch with the deal through reaching out to brokers and letting them know what we're up to. 

I think that one of the things that can be a kind of a value play in these types of assets is the fact that as you probably noticed, not a lot of people were bidding on that property or wanting that property because it was self-managed. I've looked at some deals before where they're self-managed and we've decided not to move forward because it is an uphill battle to try to pull information out of some of these property owners that aren't usually managing their books properly. But it can also be kind of a diamond in the rough if you can get a good price on that particular acquisition as well.

From day one we evaluated what variables and what risks were in it for us and that's where we shot them a number and we sai this is where we would be and went back and forth for a long time and as we extracted more and more information, a lot of it manually and onsite, we kind of built up to the point where we're able to get the deal done. 

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