All Forum Posts by: Khaled Seirafi

Quote from @Shiloh Lundahl:

Hi @Khaled Seirafi. I'm in Arizona. Why have you decided on multifamily versus other real estate strategies?

I've always been in the multifamily space and so it's what I know best. I do have some very limited experience with commercial, but I've found it to be risky when retail vacancies come up, at least in the Bay Area. Multifamily gives me more economy of scale and more flexibility to do more than having condo units spread out or SFHs. Yes, residential does give me a lower cap rate, but it's more stable. 

Would you mind sharing what spaces you've invested in AZ? And what your experience has been?

Quote from @Ken M.:

Quote from @Khaled Seirafi:

Hi to all the Phoenix folks! I'd like to introduce myself. My name is Khaled Seirafi based in California and I'm looking at potentially investing in a multifamily property in Phoenix. Would love to network with some people to get to know the area and the market a little better, as well as to hear about your experiences. Also, can any investors recommend a reputable property management firm? Many thanks!

The real question is: "What do you want to accomplish?"

I'm somewhat unusual in that I don't take on any debt. The property I'm selling is free and clear and any property I purchase will be the same. My goal is to convert at least 1/4 of the units in a multifamily I buy into medium term furnished rentals (gradually) to bring in more cash flow. And then to eventually save up to purchase either condos or SFHs, one at a time. 

Quote from @Allan C.:

What type of returns  are you looking for? I think you're going to have a hard time finding MF properties that give you positive CF using a PM in most of Phoenix. 

Around a cap rate of 5%. Do you own in Phoenix? Would you mind if I pm you? 

Quote from @Drew Sygit:

@Khaled Seirafi

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

https://www.biggerpockets.com/member-blogs/3094/91878-how-to-screen-a-pmc-better-than-a-tenant-part-2-communication-and-docum

https://www.biggerpockets.com/member-blogs/3094/91879-how-to-screen-a-pmc-better-than-a-tenant-part-3-the-management-contr

Hi Drew. 

That is all excellent advice and all very true. I've been fortunate enough to work with a few different property managers, but mostly people my family chose to work with. I was never involved with the selection process. 

Would you recommend that PMC offer references? Ideally, I'd create a shortlist of PMCs that other investors have recommended, and then put them through that selection process that you've mentioned. Doing research on essential services that a PMC must provide and ensuring that all those items are put down in writing is great advice! Yes fees matter. But at the end of the day, the quality of services provided and how well you'll get along with a PMC is what it comes down to IMHO. 

Hi to all the Phoenix folks! I'd like to introduce myself. My name is Khaled Seirafi based in California and I'm looking at potentially investing in a multifamily property in Phoenix. Would love to network with some people to get to know the area and the market a little better, as well as to hear about your experiences. Also, can any investors recommend a reputable property management firm? Many thanks!

Hi all. I'm looking to exchange a multi-use property I own in the Bay Area for a multifamily property in Phoenix (looking at 15-19 units). I would definitely start off renting most units as LTR and slowly renovate and furnish units to do MTR, having a mix of both. Do you think this would be feasible in Phoenix and if so, which areas? Any pointers or advice on doing it in the area? 

I would want to target corporate rentals, travelers, students. Traveling nurses would be nice, but not trying to rely on those. 

Hi all. I'm looking to exchange a multi-use property I own in the Bay Area for a multifamily property (expected sales price $3 million) that I could potentially convert to MTR. Do you think this would be feasible in OC and if so, which areas? Any pointers or advice on doing it in the area? 

@Bradley Buxton This is very helpful. I guess I'm trying to figure out what would maximizing the return on investment look like. 

@Michael K Gallagher Thanks for your 2 cents. This has led me to reach out to some boutique firms. But what would you consider high level of service? 

And can you elaborate some more about what would be considered good value?