Need some guidance!
I had what sounds like it could be a pretty unique opportunity come up yesterday, and I’d like to see if I could get a little feedback!
I just spoke to an investor that has two commercial buildings here in town. One has an office and two apartments, and the other has two apartments and room to build out two more. Initially, he was looking for a PM, but as we got further into the conversation, he told me that he is in the process of trying to buy his current partner in the project out, and would like to take on a new partner. As he puts it, someone with some skin in the game will manage the property more closely.
So, I’ve heard of situations where the Property Manager takes a small ownership interest (say, 5-15%) in the Property they manage as compensation, sometimes with a reduced management fee, or no management fee. Has anyone had any experience in this, or how to go about setting it up? Some sort of partnership? This situation seems like it could be a good fit, assuming everything checks out after some due diligence.
Thanks in advance for any advice!