All Forum Posts by: Ronald Bowser

Great post @Chad Jarrah!  I definitely agree with your assessment.  I have a 2 unit on South side that give good returns, but can be challenging to get and retain good paying tenants.  I also have two other properties on the West Side, they have a much more stable tenancy, not as great of cash flow, but the appreciation and stability will have me holding on to them.  Again, you nailed it!

The Lehigh Valley in general seems to be on a good path with revitalization taking place.  Allentown, Bethlehem, and Easton all have a growing population, job market, schools, hospitals, etc.  I always enjoy talking RE in the area and just got these alerts as well, hope to see this discussion continue.

Thanks @Joel Owens and @Matt Clark for the responses, much appreciated.  You gave a lot of good insight to consider which I will be sure to share with my team, as well as the owners.  We are still in the beginning stages and working on the proper way to structure our portion of the deal with the owners, which will compensate us for our services, as well as identify any unknown costs or issues we may have not considered, so this feedback is truly helpful.  We have a good relationship with this investor and would like to make this new endeavor good for everyone involved .... a proper 'win-win' as they say.

I think the intention is to get tenants signed up, but not to officially move in until construction is totally complete.  I will need to confirm this, but can foresee it being another challenge to getting the place occupied.  The building is in a good location, densely populated, that has been going through a lot of 'revitalizing'.  They are expanding the local high school which is just down the street, so we're hoping the already high demand for living continues to increase.

The building will have a mix of 1-3 BR units, two elevators, a nice entrance lobby/common are on the ground level, laundry in each of the units, with some higher end lofts on the top floor.  Again, this is all still subject to change, but is our current understanding of the expectations.  While we will handle basic maintenance requests and hire out larger jobs for our current properties under management, we are not affiliated with any aspect of the construction.  Our job is filling the units and then maintaining them once construction is complete.

Thanks again for the comments and anyone else please keep them coming.  

Any tips on how to entice potential tenants?  'Reserve your unit now and receive' 10% discount for the first year... first month free, etc.

Good marketing tips, strategies that have worked well, or haven't worked well...  Thanks BP!

Hello BP'ers,

We recently were offered an opportunity to lease-up and manage an apartment complex that is in the works.  It is an old warehouse that is being converted to 70+ units.  We have been tasked with trying to get the units occupied while construction is underway, our target is 80% occupancy (or better)before construction is complete.  I'm hoping members with experience on larger projects such as this can offer insight, specifically regarding the leasing component while construction is in progress.  I am hoping to hear about best practices, challenges, tenant incentives offerings, as well as common deal components between the owners and the management company.  Any advice you may have is welcome and appreciated.  I'll bullet out some of the details below, but if additional information is needed, please let me know.  Thanks in advance to this awesome community!

• Little background, we currently manage just under 700 units in our area.  The majority are 1-4 units, but we do have a couple 10-20 unit buildings.  One of our current investors is branching out in to this and wants us to assist.
• Construction to begin by the end of the year, completion targeted in June, but won't be holding our breath- We're anticipating a solid 6 months of time to getting the building occupied 
• Total of 5 floors, construction will begin on the top level and should provide examples of finished units hopefully by the end of first quarter 2019.  We won't be able to show prospective tenants the units however, but this should allow for marketing at that point.
• Intending to lease a trailer to remain onsite, with unit renderings, sample materials, etc. and of course people can sign up there.  Trying to determine how much time we have our agents actually on location for this, or if it is even worth it, all comments welcome
• Virtual 360 tours of units so interested parties can view online and of course links to sign up
• We will be managing the building going forward, so have discussed "leasing" bonuses up front while reducing our standard management charge for the first few years (thought is it will be challenging 'pre-leasing' the units, but maintenance should be mild since it will be new construction)... Any thoughts/concerns/recommendations on this?
• Any experience by anyone trying to fill units still under construction?  Is it way more difficult than we are thinking?  Is 80% occupancy achievable or is it much more difficult to fill unfinished units than we are expecting?   Anything I haven't even considered?

I don't want to turn this in to a huge first post so I will leave it at that for now, but anyone willing to share your expertise, I am happy to provide additional details if needed.  Again thanks in advance for anyone willing to share and discuss!

@Richard H. Hi Richard, I came across your request, feel free to PM me if you are still in need of assistance

@Vlad Suris  Hi Vlad, I am the transaction coordinator for a Real Estate/Property Management company in the Lehigh Valley.  I can put you in contact with our owner who deals specifically with investors and has a firm grasp of the area.  We can assist with the entire process, including the management of the property going forward, so please do not hesitate to send me a PM.

Look forward to hearing form you!  

Hi Anthony and welcome to the site!  You definitely took a good first step by finding BP and committing to learning.  It sounds like you have a good plan, stick with it and you'll be investing in no time.  I've been slow to participate in the community, but am tying to be more active and not 'lurk' like in the past.  I'm located here in Bethlehem too and there are a few meet-ups in the area that could help you gain some knowledge and make connections.

Welcome again and don't hesitate to reach out directly with any questions

Hello BP!

I have some experience in RE with two buy and hold properties my partners (buddies) and I acquired over the past two years. At the end of last year I found myself out of a job after 15 years. I was, and remain heavily involved in all aspects of acquiring and managing my current properties, but always daydreamed about getting out of the rat race and pursuing REI fulltime on my own. Since I find myself in a whole new position, I have been using this opportunity to educate myself as much as possible, but of course also take actionable steps. This seems like the appropriate time to thank this community and the people who make it so great. BP has provided a wealth of information and possibly more important, the confidence to pursue this new career... Thank You.

Anyway, I thought it was time to come out of the shadows and introduce myself. I have been forming my RE team (Lawyer, CPA, Investor Specialist Agent who I met at a local REI group meeting), formed my llc, have my funding lined up, and will begin actively searching deals next week. I still need to nail down a good GC in the Lehigh Valley (Pennsylvania) area, so any recommendations or general advice for a first time flipper would be greatly appreciated.

Hello and thanks again everyone!