All Forum Posts by: Justin R.

 Congratulations on 2,000 doors!

All joking aside I think door count is a fine metric. I view this metric inverse to most investors. To me its simply the numerator of an equation. If two people have the same NOI after debt service, but one has fewer doors, that model is most likely more efficient.

A few years ago I had several more "doors" than I do today, but my ROI has increased due to re-focus and efficiencies.

 I understand your frustration. You do have to remember a few things here. The first 6 months are acquisitions, removing non paying tenants, and taking over operations/management which is just the beginning of the stabilization process. I too was spoiled by the 8% pref def along with huge exits during the run up economy and ever compressing cap rates. I am optimistic on this team that the exit will still be strong. I do feel they need to be better at communicating assurance in fiscal solvency to their LPs, but at any given moment they could theoretically pause infilling, and pay the pref distributions. The reason they are not, is because this is a value add fund, not a bond.

I am hopeful (as I also have vested interest as an LP) that your 
"Very disappointed" turns into "very happy with results" by the fund exit.

Cheers!

I’m thinking it may be a great idea to start a group of several higher level investors (50 units and up) to create benchmarks, KPI’s, and outside opinions of portfolio. Basically an informal audit of ones portfolio.

This could be as simple as creating a few benchmarks (specific ratio of expenses, total PM fee ratios, vacancy rates and duration,etc)

As much as one could assume they have a well oiled portfolio, an outside investor could find areas of improvement.

Let me know if anyone would be interested, or if such a group already exist.

Cheers!

@Chris Seveney I hope you are wrong

@Diana Tran Great questions and awesome you are starting to make some moves.

I had a full time career but started purchasing homes out of state. At one time I had portfolios in 6 different states, which was too much for me.

I scaled back to my favorite 4 states to invest and started working on efficiencies.

I personally see the property manager as the “Hub” of each region. They are the only member of your team on the ground that doesn’t earn their living off of transactions. This is and should be a trusted relationship.

I’m not saying all Agents, contractors, brokers, etc are not to be trusted; but understand their relationship to your money. Your property manager is the only one that will tell you the truth, “No I won’t manage that property” and have to put their money where their month is when it comes to how much money you can collect for rent, clientele, area, etc.

This is an ongoing relationship, and a good manager can refer you to other contacts.

Ask for referrals. Be quick fire and slow to hire.

Meet them face to face. Personally a handshake still means a lot to me, and it will to them as well. Respect their time. Verbalize your own expectations. Don’t look at only their managers fee, ask what the average client pays in total fees (monthly, lease up, extensions, etc) as a percentage of rent collected. Made occasional visits so everyone knows you are present.

Beat of luck!

 Yes thanks for your input. I understand the importance that why I am going to start having my PMs give me this monthly. My question is regarding how investors are obtaining their vacancy rate from their PMs. None of my PMs send a monthly vacancy rate, but some have the leases I a review in their portal. I am playing with the idea of asking them to create a monthly vacancy rate for my properties as part of THEIR job. 

Cheers

I have several properties throughout a handful of states, all professionally managed. I usually glance as the vacancies but don't actually create KPIs for this metric.  Of course all 5 managers use different software and portals, each with their own style of reports. 

Im looking for ideas from other investors that are requesting Vacancy rates from their property manager. I just don't see me sifting through leases and figuring out move in/out dates as a good use of my time.

Perhaps I will just send an email to each PM requesting the current vacancy rate,  and their associated units along with the rest of my monthly reports.

Thanks to anyone that wants to share their experience in this tracking.

Cheers.

Im still using Royal Legal Services and have been for approximately 7 years. I am happy with their asset protection plan, services and cost savings compared to a typical LLC strategy (I am in CA.)

The upfront costs are pricey to set up the DST, but they are also creating the land trusts, and adding everything to your entire estate plan. Once you are setup though it is nice as there is no franchise filing fee.

Yea you aren't getting the pleasure of walking into an office, but they are responsive and happy to help quickly through email. One of my favorite aspects is the $49 a month "Piece of Mind" package. It's like having an attorney in your back pocket for any legal questions, concerns, and advice.

@Gino Barbaro Really??

"Thank you so much for a 15-20% IRR when 3/4 of that is done by inflation, and the remainder from cap rate compression "

Also “Thank you for losing 100% of our over leveraged capital!”

That’s not how it works man. An operator HAS to be a good steward of their investors money ALL the time.

@Gustavo Nascimento I hired one a few years back that was active on BP. My taxes are fairly detailed and comprehensive, definitely not cheap.

When I wouldn’t get a response back, yet they were responding quickly to posts here in BP, I had to cut my ties.

Best to you