All Forum Posts by: Ivan Barratt

good advice @Nathan Gesner .  I also think IREM is a great resource if you're looking for apartment or other commercial property/asset management.

Hi @Kwame Koom-Dadzie,

I recommend finding a PM who specializes in your type of asset. Alot depends on portfolio size, asset class (A,B,C,D), subsidized or market rate, mfam vs single fam (sometimes that doesn't matter), etc.  Can you provide more details?

@Rick Martin happy to chat sometime. what's your multifamily acquisition criteria (price point, units, return expectations, your financing method, etc)?  Indy is a tale of two cities... it's the best of times and worst of times and that depends 100% on you, your education and YOUR TEAM! :)

Ivan

@Harvey Levin thanks!! You can quote me anytime! ;) 

@Joe Swanson good in theory. bad in practice. most clients only want to pay more when the PM earns it (fix a toilet, lease a unit, etc).  Flat fees lead to lazy managers and cutting corners.

@Joe Swanson great comments. Good managers do charge the above rates (10% for single family through 4 family units + leasing fees, renewal fees, construction/project management fees). Small asset management IS a game of nickels and dimes for the manager. If they don't watch the small change they end up working for free.

As with most things you'll get what you pay for.  The bargain basement guys will fail you in some way sooner or later.  They'll either figure out they have to scale and raise rates (so they can afford to hire a great team... which is what I did) or they'll just work harder (instead of smarter) and end up taking on too many properties.

As your properties get bigger (more apartments under one roof) the economies get way better.

Hope that helps Joe

@Jonathan Johnson make sure you're hiring an apartment manager. they will hire staff for the property.  they will also know the market for cost of staff / pay rates.

At the apartment level PM's do a lot more due diligence (operating budget, capital expense budget, unit walks, etc) for you.

10% fee sounds like a single family manager.

Look me up on my website or linkedIN and I'll drop some knowledge over the phone.

thanks @Meghan McCallum ! It does take some special magic to syndicate real estate deals. The magic is education, lots of reading, curiosity, networking for $$ partners, more reading, a lot of sweat, and sales training.  #totallyworthit

Hire a professional PM co. You get what you pay for. At 100 units it should be 4 to 6% management but remember in commercial/apartments the property pays for the payroll. You'll need one manager and one maintenance guy but make sure the PM co has other assets in the area where they can float extra help when busy or when someone gets sick or goes on vacation.  Also, you're not figuring payroll correctly. Multiply whatever you pay them by 1.15 for taxes, withholding, etc.  Further to get the best employees on your asset they'll want benefits and paid time off.  A legit PM company that knows apartments may be able to spread your costs over another asset as well.

Best of luck

@Lee Smith  @Mia Chatman @Steve Yang

Harvey is the bomb.com for sec 8 single family!! No one does it better!

If you're looking for help on large mfam, team BAM rocks!

Sorry to hear that. IMHO for every one good turn key outfit there are 9 bad ones.

FYI: if you thinks there's fraud or other laws being broken you can file a complaint with the IN Real Estate Commission.