All Forum Posts by: David Elerman

I'm interested in doing a decently sized (80-120 units) deal in Central/North FL. I wanted to know what you guys think would be the best way to source, vet, and ultimately find a good management team. Considering that I'll be living in a different state (I do plan on being on the ground as often as I can), it's important to me that this team is the best that I can find. Any help and tips would be greatly appreciated

I've noticed that many developers/operators who are syndicating their deals and brokers (yes, their numbers are always "optimistic") who put out that their OMs for properties they're offering have ATC/Turnover costs about 300 a unit? This is for MF properties in the 75-120 unit range.

Sounds very low to me...I'd say if you need to repaint and redo carpeting you're at least $800 in when doing it through a property manager. Granted, not every unit will be turned every year and there are renewals (hopefully...) but that number still seems low.

Am I missing something?

I've been trying to look for Property Managers to manage a multi family building online. Anyone have any recommendations on how to better locate a PM company?

I'll be purchasing in FL(Tampa area)

My concern is the property management team not having the proper experience and capacity to oversee and coordinate everything. I'd rather pay an extra 5-10% to make sure things are done right and that the materials/construction/labor is done as efficiently as possible. 

I would say the time frame would be about a year or so of rehabbing all the units as the leases expire?

Let me know if you think my concern is warranted or not?

Hey All - I'm interested in going through with a multifamily value-add project. I've been involved for a few years now on the investing side and have worked with a few developers/owners. However, most of my experience has been within the Acquisitions and Asset Management side of things, with minimal Construction Management experience. I know firsthand how important that skillset is.

I'm planning on purchasing a MF property in the 80-120 unit range with a value-add business plan. In terms of the rehab, I'm shooting for mostly cosmetic rehabs. I won't be splitting up units, moving around plumbing/electric, or anything that is a relatively heavy lift.

However, when dealing with so many units, even on a cosmetic scale, I am fully aware that those mistakes can quickly compound from a cost perspective.

The market I am interested in purchasing is not in my state, and considering that I have limited construction experience, I wanted to explore hiring a construction manager/project manager for a value-add project to handle/oversee everything. What are the costs usually? 5% on total capex/hard costs? How do the terms usually work? Are there better alternatives that may be better? I still plan on coming to visit the property often, but boots on the ground with experience can help dramatically.

Any advice would be greatly appreciated.