All Forum Posts by: Nathan Faselt

@Conrad Martin

The big short comes to mind great movie more about options trading and betting against the real estate mark in the 08 crash

If you haven’t seen. It’s a must watch

@Brente Hurt. Glad you are interested in investing in the area. We Currently manage 42 units in the cedar rapids area and about 250 in the Iowa City area.   We would love to help you out if you are looking to review property or looking for a bid on what it would take to manage your investment.   

@Patti Robertson

Very interesting you say that. It makes sense to keep cost down for owners at PM company keep your owners happy don’t lose business.

But seems like a risky and behind the sense way to really end up costing the owner more money because you may scare off renewals which always cost the owner much more.

But I guess that is a gamble and would the owner see it that way.

If you are a owner manager I would say it’s not worth risking the turnover cost.

We manage 350 units in iowa city and do not charge as of now but have started but we own 200 of them first and never considered charging in hopes to keep renewal rate high.

Now that we serves at 3rd party manger to 150 unit and growing we have considered ways to increase our profitability for the management company , or at least stay competitive. That’s how I stubbled on this forum.

Very insightful and interesting to see range of thoughts on this topic.

@Richard Shahnazi is absolutely right I run a property management company in Iowa City as well as own property. Would also love to help you along the way as well as give you some insight from the management side. Also, Iowa city has much more than just student housing that is so often assumed, the multi-family market is strong and has surrounding suburbs that are some of the fastest growing towns in Iowa.  

Thanks for the in-site @Luke Trovinger & @Pat L.  so you guys like the glue-down over clip together?

@Jennifer Ruelens  So looking at the agreement It is not in there is just says that the PMC will do the lawn care. That's probably more the issue, as you said. I can see what @David Avery is saying about a flat 10% or something along those lines for subing out. As I said, totally okay with paying maintenance.

@Drew Sygit & @Evan Polaski I don't think property Mangers should be GC's when they have in-house services. like I said if the PMC employees on payroll like maintenance, cleaning, landscaping, even some admin time for court or appraisals Ect. I absolutely understand paying for, they should as Business people make a margin on that time.  Saying you will do it and then vending out and making a margin on that work seems wrong.

It would have been good to know upfront or in the contract, is what seems to be the big take away. 

1. -It appears based on titles many of my Property Management friends on here believe it to be okay and my Investor friends lean towards not okay. 
2. Investors read your contracts closely and ask good questions.
3. -PMC being up front and clear about this will earn trust and understanding. 

@Jeffrey Donis

I am looking for some insight to everyone’s experience with vinyl planking flooring

-What lasts the longest ?

-Pricing

- brands

-

@David Avery

Thanks for the response good to know

What about products at the store?

Would you say it is okay for the Managment company to add 10% that items?

I already pay for the time of the maintenance guy to go to the store.

So if he shows up on site, needs a $100 Item say a door, then I am now billed $110 door plus the whole time spend on the door from showing up until leaving after the install so including the shopping time.

I am looking for some feedback

If you have a management company working for you and they bill you $500 a month to mow your property. But then they turn around and get a landscaping company to do it for $350 pocketing the $150.

The management company has in-house mowers but they are not the ones mowing each week. Management is subbing the work out. I don’t think the management does anything on the property for landscaping.

I understand that you need to make a profit but isn’t that what the Managment fee is for?

They have in-house maintenance too and I pay $50 per hour but I’m sure it’s costing them maybe $35/hr. I’m okay with the management making a margin on maintenace because it is their employee.

Are they breaking there fiduciary responsibility by not doing landscaping themselves?

Should I have just been given 3 bids?

.

It seems like a lot of banks like to stick to their 80/20 rule how can you negotiate a better down or creative ways to get a property for cheaper?