All Forum Posts by: Matt Maurice

Hey Bryan,

Check out NARPM, they have a TON of resources that will help you get off the ground way smoother.  Almost every property manager starts with trying to "fix" an issue in their market, and most of those 3 years later have made no money and changed their business 10 times.  It's stressful, and the pricing model is the most overlooked piece (coming from a guy who made all these mistakes, trust me).  

Also start listening to some industry podcasts: 

Jordan Muela profitable property manager

Brad Larson property manager mastermind show

Alex Osenenko property maangemente podcast

Best of luck!

@Brent Watanabe Brew City definitely has a plethora of options!  Make a sandwhich and budget some time with the "serach" button, you'll get just about all the info you need there with referrals and feedback. 

If you are looking for a GC to handle a bigger job, you could try MK3 Construction, that's our internal GC company that handles our rental jobs.  

Best of luck!

There is so often a very gray area when dealing with property management specific to scope of work.  When renovations are involved, that often amplifies the potential for issues like this.  Your property manager (I'll give them the benefit of the doubt, for now) probably made a judgment call on your behalf that this work was required or in line with previous decisions you had made on other units. 

Having your property manager run a project is very similar to hiring your own employee as a project manager.  They are spending your money, entering into contracts on your behalf, but they are really not acting in a contracting role.  If the expectation is that they confirm every minute detail with you prior to making a decision, then why not just manage the project your self?  Too many chefs in the kitchen never produce what you want.  

Now, the bigger issue I have with your original post;  if the PM has gone silent, you have a big problem.  Mistakes happen and every now and then we have to have difficult conversations with our big PM pants on, but if they aren't even willing to discuss the situation with you it's a sign of guilt.  

At least the work you were charged for was actually done... we see it pretty often where work charged was never actually completed.  Don't throw away an otherwise good relationship over $2k in improvements, but definitely have the conversation with them.  

@Marcus Auerbach what if it's any other kind of truck, then who is she supposed to call?

Congrats on the purchase Zachary!  There are several good options in Milwaukee, many of which do better in certain areas of towns or with specific types of properties.  Happy to help if I can, just let me know!

@Noam Adler Get clear on your financials!  

While it may seem logical, I find most property managers (myself and business partner included) start management companies with a good heart and operational mindset, but never really figure out how the financial model works.  More or less we pick a price lower than our competitors, then provide 10x the level of service... right up to the point where something REALLY breaks...  which could be you, your family, your team, your bank account.

The cost of scaling an effective property management business is often significantly underestimated.  The benchmark study done by the Profit Coach guys and sponsored through NARPM, really highlighted how many PM's across the country were losing money providing their services, not to mention the liabilities they were absorbing for their clients.  Every PM thinks their business will work "at scale", and I just need to get to 100, 200, 500 doors to be profitable and the fact of the matter is a negative number, times a bigger positive number is a BIGGER negative number.

Sincerely,

A guy who has made every mistake in property management, worked 100+ hours/week in a negative profit company and just now starting to figure it out.

Investment Info:

Office Space commercial investment investment.

Purchase price: $120,000
Cash invested: $650,000

Contributors:
Ed Riggenbach

Commercial redevelopment project in a (sort of) historic downtown area. Building out for a co-working space, starting construction in June 2019!

What made you interested in investing in this type of deal?

Curiosity in commercial REI

How did you find this deal and how did you negotiate it?

Stumbled upon it in MLS

How did you finance this deal?

Cash & Portfolio Lender

How did you add value to the deal?

Massive build out

What was the outcome?

TBD

Lessons learned? Challenges?

Commercial takes WAY longer and the red tape is thicker

@Steve Rozenberg you already posted that on this thread, you're just too fast to try and help out!

@Codi Clausen There are several different PMs in MIlwaukee that do a great job, and most to @Jeremy Trad's point are pretty geographically specific.  Handling units for $2k / month on the east side is drasitcally different than $500 / month in the inner city.  You'll want to align your property type, investment strategy and long term goals with the PM you choose.  

@Steve Rozenberg always has great insight on this topic, and the questions he suggested are spot on.  Just be careful on making the initial contact with any PM too much of a resume & cold interview process.  You are essentially hiring your partner in your investment business, it's as much about a good working relationship as logistical execution.   

Feel free to pm me with the property info and I can help get you to a short list of folks to chat with.

@Account Closed I agree with basically everything said here, including the part where your PM should be handling the problem for you.  What I don't see answered above is if the dumpster is needed for your tenants or why it's there?  If a company is servicing it, then somebody is paying for it... hopefully your pm isn't paying the bill on your behalf?

Might take a few more phone calls, and while tempting, don't bother moving it into someone elses way it will only cause you problems (and probably money/fine).