Commercial Wholesale Training 1 Ed and Bob Diamond Module VIII.

Commercial Wholesale Training1

Commercial Wholesale TrainingCommercial Wholesale TrainingEd and Bob Diamond

Module VIII


Agenda for TodayAgenda for Today

Module VIII – Managing The Building(s)


Chapter One – Professional Chapter One – Professional Property ManagersProperty Managers

The Property Manager can make or break your building - they are in a “high leverage” position and can lose money or steal money from you

Select them very carefully!

Get a good one and you can “manage the manager” and have a life outside the building


Rental Properties are NOT PassiveRental Properties are NOT Passive Property Management is not a passive activity -

to manage requires you to be detail oriented, tough, and to be present to:– Pick up and deposit rents and leases– Supervise maintenance and repairs– Check on the building– Deal with emergencies

You must have a manager if you don’t want to do the above items


Selecting A ManagerSelecting A Manager

Interview at least five - 90% are not goodGet references and check themCall their office as a tenant and see how

they areCheck on line for their reputation - “Yelp”

and other similar sites and Google themCheck if they have been sued in the local

court system’s on line docket system



Find an investor who is satisfied with their manager for referrals

Check what reports the manager intends to give you

Demand on line access to your bank account

Demand they deposit your rents in a separate account



Interview questions are in the book Select a manager with experience in your type of

building Check their knowledge on local vacancy and

rental rates and neighborhood knowledge If you cannot find a suitable manager do not buy

the building There are more details in the book on the

contracts, reports etc.


Chapter 2 - The Art of ManagingChapter 2 - The Art of Managing

You need weekly reports on all activity from your manager

If the manager uses Yardi, Rent Manager, Propertyware or Tenant Pro it will have the reports you need programmed in

90% of Managers are poor - expect to fire a few and for it to cost you some money

Fire early and Often if they are not satisfactory!


Chapter 2 - Manage Your ManagerChapter 2 - Manage Your Manager

Check up on the manager with a physical inspection of the property (surprise inspection)

Check up with monthly planned visitsSurvey your residents via email with

survey monkey and monitor the customer service email with a google email forwarded address or property website


Chapter 2 - It is Critical to Manage Chapter 2 - It is Critical to Manage the Managerthe Manager

A poor manager can cause a property to fail or under-perform

Under-performance means you will not make money

Improving performance is a way to make a lot of money because the building value goes up when the performance goes up


Chapter 2 - Poor Management Chapter 2 - Poor Management Creates OpportunityCreates Opportunity

Poor management frustrates owners and they want to get out. Creates a buying opportunity

This is also why you need to see actual numbers from the seller’s tax return (accountant certified) and NOT “Pro-forma” numbers


Chapter 3 - Ways to Control Poor Chapter 3 - Ways to Control Poor ManagementManagement

Watch the money - managers will spend it unwisely and poor management will show up in less cash then should be there

Make sure you set aside funds for adequate maintenance and repairs

Plan for replacement of roofs and other expensive items by setting aside money

Major refits every five to seven years


Getting to ClosingGetting to Closing

• Next Class is Getting to Closing and Managing the Transition to Ownership

Commercial Wholesale Training 1 Ed and Bob Diamond Module VIII.

Documents

Transcript of Commercial Wholesale Training 1 Ed and Bob Diamond Module VIII.