MET GARY LIPSKY LAST NIGHT

Last night was an extraordinary evening for me as I had the privilege of attending a meetup where I met the renowned author of "Best In Class" and the esteemed Syndicator Of The Year, Gary Lipsky. His insights into real estate asset management during a recession were nothing short of eye-opening. I couldn't help but take notes as Gary shared invaluable wisdom that I believe every investor should be aware of.

1. Knowing Your Debt Terms: Gary emphasized the critical importance of understanding your debt terms during a recession. In times of economic downturn, lenders can call the loan due if you violate even a single line of the loan terms. This sobering reminder serves as a wake-up call to meticulously review and comprehend every detail of your debt agreements.
3. Crucial Role of Asset Management: Gary highlighted how asset management becomes even more crucial in a recession. With economic uncertainties abound, astute asset management practices can make or break your investments. Monitoring and maximizing the performance of your assets should be a top priority, ensuring that they remain resilient and profitable during challenging times.
5. Debt Service Coverage Ratio: During a recession, maintaining a healthy debt service coverage ratio becomes paramount. Lenders become less accommodating, and meeting the requirements for this ratio becomes essential. Vigilantly monitoring and optimizing your cash flow to ensure it adequately covers your debt obligations can safeguard your investments and strengthen your relationship with lenders.
7. Vacancy per Unit Type: A novel perspective shared by Gary was to focus on vacancy per unit type rather than evaluating the building as a whole. By scrutinizing each unit type's vacancy rate, you can identify areas of opportunity. Gary suggested that if you need to increase net operating income (NOI), consider raising the rent by $15 for the unit type performing exceptionally well.
9. Increasing Occupancy: In cases where increasing occupancy is the priority, Gary suggested concentrating on the unit type with the highest vacancy rate. By temporarily reducing the rent by $15 for that specific unit type, you can attract tenants and boost occupancy. This strategic approach helps strike a balance between maximizing revenue and filling vacancies efficiently.
11. Valuing Employee Input: Gary emphasized the importance of fostering a collaborative and inclusive work environment. He encouraged making team members feel heard, valuing their opinions, and actively involving them in decision-making processes. This approach fosters a sense of ownership, boosts morale, and leads to better outcomes for everyone involved.
13. Scalability and Team Management: Gary emphasized that regardless of the property size, asset management requires a similar amount of effort. However, scalability introduces the need for adequate payroll and staffing. Recognizing the significance of investing in the right team to support your asset management endeavors is crucial for long-term success.

Conclusion: Meeting Gary Lipsky was an enlightening experience that has undoubtedly broadened my understanding of real estate asset management, particularly during a recession. I am excited about the prospect of having Gary as a guest speaker at our meetup. The insights he shared last night have the potential to provide immense value to our audience. With Gary's expertise, we can learn how to navigate the challenges of asset management during uncertain times and emerge stronger and more resilient as investors.