All Forum Posts by: Michael Tempel

Tom - PM me, I have a large network of brokers that work in this range of properties.    I have a hand full I think will be very helpful and some off market properties owners are selling direct in this size range.

Congrats!   I love NE, you will do well.  We own a few apartment buildings there and are renovating a 17 unit this month.   

Feel free to connect if you want any advice.  

Here is an example of the renovation we are doing in NE.  

https://my.matterport.com/show/?m=e3yeE4umqtR&brand=0

Great list. Dave Lindahl is another must read.

Simplest answer is it always the notice period you require that is written in the lease. If the resident is required to give you a 60 day notice, you will need to do the same. With the crazy market we are in we normally give notices out 15 days prior to our notice period. The goal is to show good will to residents we hope to keep in a market where high rent increases are the norm. One technique we use is to invite residents to come in for a lease renewal meeting, offer incentives and unit maintenance such as carpet cleaning, paint touch ups and sometimes anniversary gifts. A turn will cost around $1000.00 be the time everything is completed, so spending extra time and offering additional services/anniversary gifts has been money well spent. Our goal to to average 1.5 plus years on average even though rents truly are rising 8-30% at times depending on the local market and property. You have to show the value otherwise residents will be quick to leave and even worse leave bad reviews in the process.

Originally posted by @Anthony Chara:

Generally, you'll put in an on-site manager when you get around 60-70 units. However, it does depend on the classification and condition of the building and residents. The older the building and the lower income the residents are, usually the more hand holding/supervision the property will need. My general rule of thumb is 1 FT manager and 1 FT maintenance person for every 100 units.

I would have to agree with Anthony, but if you are growing your portfolio my suggestion is to look at how you can include smaller buildings in the area using your larger properties as a hub or staging area for management/maintenance. In Minnesota we have used this technique to manage a diverse portfolio of large MF, Commercial, HOA and SF (800 units currently).

In some cases we have had one PM manage up to 200 units simply by using this structure.   We push performance and rents to usually exceed market comps, so finding great employees and paying them well is key to making this structure work.

We use Appfolio, Yardi and sometimes Real Page depending on the property or portfolio of properties.   You should be able to get detailed reporting that includes a monthly income statement, rent roll and expense register along with many other reports if needed.   Really shouldn't be a need to do the math for your PM.   

John, feel free to reach out.   We are extremely active as a management company, but have lots of off market opportunities available that we had to pass on.  We focus on larger MF, but also look at 5-20 unit deals all the time.

Asset prices, 1031 money overflowing the market, market cycle changes, sell off, rising construction cost.   I look at 2017 as the year to hold tight and hopefully watch some of the larger players exit our market that have pushed prices way up on buildings we normally could buy for 25% less a few years ago.

Justin, We work with buildings like this. Currently 540 units from Edina to Buffalo MN. Please reach out anytime.

I recently have been looking at crowd funding and other sources for real estate and signed up with Reality Shares as an investor, but really want to use them for a future acquisition as a borrower.

Does anyone have any experience with them?  

We would want to fund a 1-5 million property, so my hope was we could have 20% covered and possibly have assistance in obtaining a sponsorship position.