He is a small operation, and is geared towards creatively bringing the most value to spaces that need to be reworked, and I've been impressed with his attention to detail and portfolio of work so far.

They only look at their back of the napkin calculations of what they pay a PMC, assuming it's 100% profit, because they NEVER consider what expenses a PMC has.Since you like to crunch numbers, why don't you calculate how much it would cost for YOU to hire people to do the following:Inspect a property to make sure it's ready to marketTake marketing picsPublish and refresh for rent adsTake all the phone calls from adsSchedule showingsChase applications, process & screenGet deposits and sign leasesCollect rents, chase delinquencies & evictionsHandle maintenance requests, which are never handled fast enough for tenants, or cheap enough for ownersChase tenants for lease renewalsCoordinate MoveOuts, damage charges against security depositsGet RentReady bids to owner's satisfactionFollow up with maintenance to make sure done on time and done rightStart the cycle all over againProvide accounting services for all of the above, including owner reports and payments, annual 1099's, etc.Don't forget to factor in payroll taxes, employee benefits, company office space cost, company insurance, equipment, phones, etc.Once you do all that, you'll quickly find that PMC's are NOT making more than owners.FYI - this is why investors should always factor in 10% PMC Fees, 10% Vacancy and 10% Maintenance when running numbers on a potential rental purchase.

They do not understand the space well so give really bad loan terms to dip the toe in the water but it has nothing to do with the actual tenant or the property itself.I have seen a bank that does not do much commercial be 45% down, 20 year amortization, 5 year fixed, big pre-payment penalty, rate in the 4's,etc. 

I used a fannie mae homestyle loan and renovated the cottage into my home office space for now.

At 80% occupancy the storage unit building combined with the now rehabbed retail space, the property will be cash-flowing about $25,000 a year($2,100/month at 80% occupancy).Once we are at 80-90% occupancy we will refinance doing 75% LTV and recoup 100% of my initial investment ($105,000) as well as my partners rehab costs (20k).

Interest payments on the commitment or as you draw.. this is HUGE.. we all charged on the commitment for years , but as the HML space got more competitive the bigger companies will only charge on funds that are drawn out. 

By remodeling every inch of it including new insulation in the crawl space and a vapor barrier.

in the old days HML charged interest on the commitment.. as competition came to the space most HML these days only charge on the drawn funds. 

I think college students will start to become more picky and will want more space, nicer amenities and nicer housing (especially if mom and dad are paying for it).If you are an operator that provides a superior service and product, I think you will be fine.

The space is very crowded now, but overall I think they are a small footprint with corresponding risk.