Manage episode 306961371 series 2855545
Welcome back to another episode of the Real Estate Asset Management podcast! The conversation today centers around a recent deal we sold, covering the whole cycle of ups and downs we faced along the way! We kickstart the conversation with some numbers up front and move through each step from the initial site inspection of this true value-add to the challenges. We talk about taking over just a few months before COVIID, renovation decisions, scaling, and the permit marathon. The listener will also hear firsthand details of the business planning and execution, as well as some tough decisions about changing managers, and the importance of a great team. Rarely is it a smooth ride, and if you want to learn from this excellent example of picking the right markets, truly knowing that market as well, and being a hands-on asset manager, tune in now!
Key Points From This Episode:
- Some upfront numbers about this true value-add, and how we beat others to the punch!
- How the property wasn't managed overly well, but the numbers worked.
- Some difficulties in finding good partners that believed in us and the deal.
- What to do with our webinar to raise capital when the lending cap was reached for that year.
- Changing the name, scaling back on renovations, and effective one-time advertisement costs.
- Getting a permit for the washer dryers; it takes longer than you think.
- Taking time to work through a rough tenant base.
- Challenging managers, and waiting too long to make a change.
- How important it is to have a great team.
- Outlining the financing, Fanny Green loans, the pitfalls of long-term financing, and more!
“You want to get a jump on others and, if you can, make a preemptive bid before it goes to a best and final [offer].” — Gary Lipsky [0:02:14]
“You need to be able to trust your property manager, when you cannot then it is time to move on.”— Gary Lipsky [0:08:18]
“Having that extra in reserves gives you options to do [these types of] pivots, as you never know what will evolve over time. And it is great to have that buffer, to have the flexibility.” — Gary Lipsky [0:09:19]
“Even if you are making great strides, let your property management team know that you are not going to get complacent so that they are not going to get complacent.” — Gary Lipsky [0:10:57]
Links Mentioned in Today’s Episode: