All Forum Posts by: Percy N.

Deepti,

        We used Resman for a few years. It is a decent web based property mgt and property accounting software.   

It will track units, allow you to track applicants, residents, ledgers, has resident portals, work order mgt, reporting etc. It has several partners for payments, online leases, etc. 

You will need other means for marketing, etc.

Not sure what price you were quoted, but it was pretty inexpensive for us.       

How many units are you looking to manage? 

Are you self-managing? 

What other software have you considered?

Often smaller operators add things that should really be CapEx as an expense item to help their taxes.

Make sure the items under expenses are true expenses and not to be capitalized.

Is the owner self managing and paying themselves?

For an expense ratio, older properties generally run 45-55% of gross income.

@Jason Malabute, yes, if their custodian allows it.

Often "alternative assets" are not part of a typical 401K plan and thus people go with the solo-401k or self-directed IRA for these investments.

Have them talk to their CPA and retirement plan custodian.

And of course, if they are investing into a syndication or fund, then they are purchasing securities that may have other qualifying requirements.

@Jacqueline Coombs, as others have said, it is pretty common for the sponsors to be OOS. The key is that they have the right infrastructure in place to manage the property. This includes resources centrally and at the property location.

Is this going to be 3rd party property managed or self-managed by the sponsor team?

IMHO, it is more important to have an experienced team than go with someone local and inexperienced.

Look for an agency small balance loan if the property is stabilized.

Typical PPMs are $100K or $50K minimums but I have seen them as low as $25K.

Most PPMs also have the flexibility to allow the sponsor to accept lower amounts if they like.

We have some units and complexes with ceiling fans and some without.

They may not by themselves garner a higher rent in our markets but it sure can help with - (a) Lowering "AC not cooling" calls when it is an air circulation issue and (b) helps lower tenant turnover at lease renewal if the resident is happy in their home.

 While I appreciate the desire to "escape" the 9-5, I hope you realize you will be going to the 8am-11pm routine when you start syndicating ;-) Dealing with other people's money comes with more responsibility and generally more hours.

Yes, I know its not a "job" if you love doing it and that is true but starting syndications is like a start-up and takes resources, time, effort and cash upfront to make it successful.

Just my $0.02

Need more info for a good recommendation - size of the deal & loan, type of loan (agency, bridge, etc), asset class, MSA, etc.

@Jared Sliwinski, a couple of questions/points:

1. - Why are you looking at vacant properties? Is it because you think it is a good deal? It might be but typically comes with a lot more risk.
2. - Finding lenders and investors for vacant properties can be challenging.
3. - Who is going to be doing the day-to-day property management for a sub-40 unit deal? Can the property afford a leasing team and a maintenance team (typically this requires 75-100+ units).

If you *must* pursue a vacant property, I suggest having a strong partner who has experience with these type of properties.