All Forum Posts by: Michael Tempel

Sounds about right.   

Brandon,

I would love to show you at least one of our properties.   Feel free to contact me using this or my info in the signature.  We are in Minnesota and have properties in 5 cities in the area.

I might still be interested :-).  

I agree, I have investors I haven't even met or spoken to at all that receive a check from our properties.  I prefer to have any property work as a turnkey solution whenever possible.  If we had to receive input from over 80 investors, it simply wouldn't work.  We do everything and only need input on major decisions or issues that come up.

In turn, I only invest in similar projects whenever possible in other industries and RE.  The only exception is a major renovation project that we are managing, with all the time and effort it takes, we like to have some equity long term.

Thanks Trevor.   Those are very good ideas!

We have had a good year and have had unsolicited testimonials from residents, commercial tenants and PM clients.  

Here are a few questions I have related to this:

1.  What is the best way to ask or receive testimonials from happy customers in general?   Many times people are excited to write a testimonial, but not sure what to write for example. 

2.  With so many places to list testimonials has anyone figured out a way to easily list them on multiple platforms at the same time?   It isn't always easy for someone to leave good feedback due to sign up requirements ect.  Many times we receive an e-mail or something in writing, but of course would like to share this online as well.  We are also looking for technology that can do this as well. 

Rob,

I agree with your concerns, but I recently watched a company grow by 2000 units by systematically aquiring smaller PM companies within one year (2 years ago).    The devil is in the details of course and very good contracts and purchasing structure is needed.  

So far they have successfully gained those units and momentum without losing contracts etc.  to find this number of units organically on their own would take many many years and resources through traditional avenues.    So I see it as a great growth strategy when implemented correctly.   

I am looking to hear from others that have actually done this if possible to help navigate those issues and gain a little more insight into the process.   

We are starting to focus on a different market segment and looking at acquiring existing PM companies or parts of a PM's portfolio that is in an area we would like to manage.  

Has anyone had any experience in doing this?   We are focusing in the Minnesota, Minneapolis market and mainly interested in single family, duplex, triplex and smaller apartment community portfolios or PM at the moment.

Looking for:

How are these deals structured?

Time frame and onboarding?

anything else we should know??

Here is a good example of what can happen with good management. This is just a small 12 unit property, but this case study gives a fast example of the overall picture involving purchase, management and renovation/repositioning work and how it increases the owners ROI. This was self managed prior to purchase.

12 unit building acquired in December 2012

Total investment: $720,000 (purchase + renovation)

100% occupied at time of purchase

Post renovation rents are 30%+ higher than prior levels

The Manager returned 62% of initial equity to investors within the first 18 months

The Bottineau posted a 35% Return on Equity (ROE) in 2014 from rents alone (does not include additional unrealized capital gains)

Property website: http://www.thebottineau.com

I am an owner of a management company, but I think hiring the right management company can exceed your profitability.   Also, at least in Minnesota the above listed percentages seem extremely high.   We typically grow revenue by up 30% by understanding the market and lower any unnecessary expenses by constantly making modifications and watching for waste.

Operate in GRACE - Growing Revenue and Controlling Expenses