I am looking into possibly buying one or more 30+ unit apartment buildings out of state. The building would be run by a property management company. Does anyone have experience doing this? Is there anything in particular I should be aware of when venturing farther afield?
Any feedback would be helpful.
The normal due diligance still applies, whether the deal is down the road or across the country. But when the property is across the country, it's the property management company that can make or break your deal. So make sure you do your homework well on them.
I'm curious. What did you find in your state?
Thank you. :D
JT - Take a look at Things to Consider when Interviewing Property Management Companies. You might find it a bit useful.
Otherwise, as Equitydeals said, you need to do your DD before leaving such a large investment in the hands of someone you don't know.
We'll be glad to go over the pros and cons of apartment building investing. We've got an experienced staff and multi-family financing is what we do. Call and ask to speak to Phil Zeman. He's an accountant, a certified cash manager, and a former commercial banker. He's easy to talk to and will gladly answer any questions you may have. Best of luck!
Georges - Why don't you give your feedback here. That's what these forums are for. If you help people out, they will possibly call you. If you're here just to advertise your company, you can advertise on our site (http://www.biggerpockets.com/advertise.html ).
In the future, please do not solicit phone calls. Try and answer the questions asked -- the member JT asked "Is there anything in particular I should be aware of when venturing farther afield? " Can you answer that?
My apologies. My two cents: based on what I've seen/encountered, you may want to investigate to see (1) how long they have been in business, (2) how many other properties they manage for out of town investors, and (3) if they are licensed and/or certified. With that info you can ask for references, check public records, and make a more informed decision.
I would feel more comfortable if they were experienced in the following areas:
Local/state laws and ordinances
Marketing/Advertising for new tenants
Taking it a step further, you can even request pictures, brochures, etc.
of any properties they are currently managing. Also, have someone call posing as a potential renter to see how they handle business.
No single step will guarantee success but careful research helps to reduce the risk factor when it comes to property management. Most investors I know will personally visit the property before buying. No exceptions. And subsequently hire a property inspector to go by once a month to make sure things are going well. This serves to keep the property management company on their toes and also helps you keep a tab on how the property is being run.
Hope this helps a little.
AIM Funding Group
I am a investment real estate agent so I see a lot of these type of deals go across my desk everyday and what I would recommend is that you evaluate several different product types for example apartments, retail (shopping centers), office, and industrial properties. What I have seen is that apartments are generally the most intensive when it comes to management so as an out of state owner it may be preferable for you to consider something that will require less management risk. If you still to choose to go with apartments then I would agree with what the others said, make sure you do your homework.