All Forum Posts by: Benjamin Latusek

A ton of great stuff here! I recently came across the idea of a "Resident Success Coordinator" role, and I think it makes a huge difference! Maintaining that relationship beyond just the lease up process and whenever the tenant has a maintenance issue or lease expiration completely changes the dynamic of the relationship.

I believe it all comes down to this: Does your client feel like the value they are getting from the property manager worth more than they are actually paying? 

In a simple way: you wouldn't go to the store and buy $100 in cash for $150. In a service business like property management, your contributions can go unseen at times - so I feel as though value is harder to recognize, so you need to really exceed expectation in order to prove this value!

If you can prove this value and maintain high levels of communication - you will be a very valuable 'who' is someone's investing journey. Then the tradeoff between price and level of service will not be questioned.

Clare, thanks for the warm welcome. What are some key selling points for investors and tenants that you communicate to differentiate your property management business from the competition?

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $925,000
Cash invested: $200,000

13 Unit Multifamily property in the Waveland neighborhood of Des Moines, Iowa. pre-acquisition: 7% under MR and 15% vacancy/bad debt. Now leased to market, under 4% vacancy/bad debt, and RUBS implementation. Updates of heating, adding cooling, and electrical. This building was built and 1924 and has a lot of old character. We hope to own this building for a long time as we enjoy taking care of it and continuing to make it a staple of the neighborhood.

What made you interested in investing in this type of deal?

We loved the old charm of the building. I wanted to get started in investing in multifamily real estate in 2022 to take advantage of low interest rates and rising rents. We wanted to improve this building and make for a long-term hold that improves the community.

How did you find this deal and how did you negotiate it?

Found on Crexi. Negotiated with a residential agent and purchased from a large capital group in the Des Moines, IA metro.

How did you finance this deal?

Financed by securing debt on a different asset in our portfolio where we could get the best terms given the rising rate environment.

How did you add value to the deal?

Lease to market rent. RUBS Implementation. Reduce Vacancy and Bad Debt. Improve building heating/cooling and electrical systems.

What was the outcome?

We still own this property, but we have: 1) leased to market rent, 2) successfully implemented RUBS to save roughly $3,000/year, 3) Reduced vacancy/bad debt from pre-acquisition T-12 of 15% to less than 4%.

Lessons learned? Challenges?

Pay yourself near market rates for management efforts to avoid burnout. Analyze and submit offer based on if you would have a 3rd party property manager. Always account for the costs of upcoming capital expenditure items in your purchase price. Action will always trump inaction - I have made mistakes, but this deal has taught me a ton, AND we are making money on the deal.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $925,000
Cash invested: $200,000

13 Unit Multifamily property in the Waveland neighborhood of Des Moines, Iowa. Property was about 7% under market rent and has a T-12 vacancy of 12% before acquisition. Since then, property has been brought to market rent and vacancy was held under 4% in the last year. We have also completed some exciting improvements including retyring a boiler for heat/cool ductless mini-splits and 9 units being electrically updates. This building was built and 1924 and has a lot of old character. We hope to own this building for a long time as we enjoy taking care of it and continuing to make it a staple of the neighborhood.

What made you interested in investing in this type of deal?

We loved the old charm of the building. I wanted to get started in investing in multifamily real estate in 2022 to take advantage of low interest rates and rising rents. We wanted to improve this building and make for a long-term hold that improves the community.

How did you find this deal and how did you negotiate it?

Found on Crexi. Negotiated with a residential agent and purchased from a large capital group in the Des Moines, IA metro.

How did you finance this deal?

Financed by securing debt on a different asset in our portfolio where we could get the best terms given the rising rate environment.

How did you add value to the deal?

Lease to market rent. RUBS Implementation. Reduce Vacancy and Bad Debt. Improve building heating/cooling and electrical systems.

What was the outcome?

We still own this property, but we have: 1) leased to market rent, 2) successfully implemented RUBS to save roughly $3,000/year, 3) Reduced vacancy/bad debt from pre-acquisition T-12 of 15% to less than 4%.

Lessons learned? Challenges?

Pay yourself near market rates for management efforts to avoid burnout. Analyze and submit offer based on if you would have a 3rd party property manager. Always account for the costs of upcoming capital expenditure items in your purchase price. Action will always trump inaction - I have made mistakes, but this deal has taught me a ton, AND we are making money on the deal.

Hello Savannah, thank you for the warm welcome. Property management is the foundation of successful real estate investment - so it has been a great way to grow my real estate career. As far as my personal investments, I have mainly focused on multifamily - but I do have commercial retail and office investments. I have found a profitable niche between 8-50 units where larger investors do not focus and there is great upside that is addressable with the property management business capabilities. As far as investors, mostly this has been family at this point. I would like to bring in more external investors in the future to fuel growth and form strong partnerships. 

What about yourself?

I also don’t have a percentage, but in general - I have found Facebook Marketplace to have the “coldest” leads. However, it is a must to utilize Facebook Marketplace for rentals in the Des Moines, IA market. 

With that being said, there are a few tactics that I use to boost my success rates with marketing in Facebook Marketplace:

1) post on Facebook groups. Larger cities always have “for rent” pages. These will allow you to advertise in an area where viewers are actually looking for a new home or apartment.

2) boost your listing with a small daily budget. Even $2-$5/day makes a big difference in my experience

3) Follow up and ask engaging questions to the prospects. A staple of Facebook Marketplace is getting the “is this available?” Automated message. I have found the greatest success by responding to this to get the conversation some momentum. Answers such as “yes it is. When are you looking to move?” Or “yes it is. Would you like to schedule a showing?” Have gone a long ways for me.

If a tenant wants to break a lease, there should always be something stating how this is handled in your lease agreement. I would use this as a starting point of these negotiations if you do choose to “bend” in any way from the legally binding agreement. After all, you do not want a tenant living in your property who does not want to be there, or cannot financially support the monthly payments.

With all of that said, my greatest advice is to get a lease termination agreement in writing. Additionally, I prefer to receive the termination amount BEFORE the tenant breaks the lease and moves out. Attempting to collect from someone who has no incentive to pay will drastically lower your chances to actually get the agreed upon money. 

Hello all, my name is Ben Latusek and I am a real estate investor and owner of Synergy Property Management. I own, manage, and operate out of the Des Moines, Iowa metropolitan area. I have a real passion for real estate due to the difference that it can make in the community, people’s lives, and the wealth generation possibilities that it creates. During my investing career, I have found a great ability to manage all types of properties at a high level. I heard a repeated need for quality property management in the area so I started by property management business to partner with clients and provide a better experience to all. I am excited to be a part of the Bigger Pockets community and I am eager to connect with and help. Please reach out if you would like to connect more!