All Forum Posts by: Tony Nguyen

@Percy N. - Thank you for the info. I'm actually looking to hire 3rd party PM because I wouldn't have the capacity. In addition, it is because I'm aiming for on-site management instead of off-site. 

 @Mike Dymski - That clears up a lot. So you’re saying the 4 employees in the leasing office work on-site for a 3rd party property management company who has their corporate office off-site. This would then mean they have a manager/boss who oversees their daily activities if I’m reading this correctly. Thank you for your input.

@Michael Bishop - I'm approaching this with worst-case scenario meaning I don't want to rely on my current property management team to be able to handle an additional 100 unit chunk at one time. I wanted to see what options exists when buying a large parcel and you don't have your own property management company. For example, if I buy in another market such as Austin, TX, I have zero contacts out there so I'd have to rely on worst-case scenario. From what you're saying, if I was to replace the current management, it seems like I would have to find a new off-site apartment community management company who can place employees on-site, right? Thanks for your advice, very valuable perspective on why replacing management is important to improve NOI.

@Jeff Greenberg - At a 3-6% PM fee, plus their salaries, are you typically seeing a 10% all-in cost for PM? Thank you for your input Jeff!

Hello all, 

I'd like to grow my portfolio by larger chunks, but am unsure how on-site management is handeled. Right now, I own just under 90 units on multiple parcels, ranging from 8 units to 25 units per parcel and have 3rd party, off-site management. 

I want to buy a larger property (e.g., 1 parcel with 100+ units), but am unsure how it works when there is in-place, on-site management. From the apartments I recall living in, there’s usually a leasing office with a staff of 2-4+ employees. When purchased, do you inherit the staff or is the staff just a 3rd party management company with staffing on-site? If you do inherit the staff, who is in charge of managing the staff? 

In other words, how to do you scale and take advantage of in-place, on site management?

@Daniel J. - With experience comes confidence. I think when you get more experience under your belt, the possibilities will become clearer. Your 25 unit deal range sounds like a little fear to me, which is normal and very familiar. I used to be in that position with other things in my life. Redbull has a great commercial where it ends with the quote "the only limit is the one you set yourself", great commercial. Good luck with your JV projects, please keep us updated.

Originally posted by @Joel Owens:

What I like about commercial real estate for myself is if I develop a STNL property with a long term 15 or 20 year lease and the average real estate cycle is 7 to 10 years then I can decide when it's best for me to sell or refi.

 Hi Joel, for your personal portfolio, which do you prefer - STNL's or Multifamily? If STNL's, what type? 

Depends on your state procedure regarding timing, but in FL, the actual LLC itself takes 24-48 hours to register. I personally don't file for the LLC until after the lender delivers a commitment letter + appraisal has been completed. This normally means closing will happen in about a week which is why I handle it then.

PM me, happy to share a purchase LOI

April, decide what you're buying first, then find a Broker who specializes in that particular product. Figuring out who you "click" with most will come second. Good luck!

Mark Allen can you please share your copy? Thank you sir!

Happy to share mine I made from using Word and Excel. It was to present a 22 unit multifamily apartment. Package is clean, nothing fancy and is a little over 20 pages. Not sure how to share here so PM me if you'd like it, thank you.