All Forum Posts by: Steven Gesis

 Jerry, I agree with you lots of missing pieces to make a structured response, I mean so many variables can play into this question. Quality of the home in its current state, expectations, distance of landlord to property, lacing a local team to address concerns nd inspections as they arise. So many items go into this play. I can say is that usually a well oiled property management company can help you operate much more effectively and efficiently, they already have the staff and the system. take advantage of the economies of scale. You want to pay market rate for this service, however, you want to make sure you can count not hem to go above and beyond for you on every asset, on any issue and be their to forge a long term relationship.

 Faisal, good questions, I think the answer is simple - experienced property manger will / should win out in this challenge, I do not think it maters if you are in your immediate area yourself as the landlord or you are a long distance landlord. If you are a long distance landlord even more reason to have a property manager. You want to make sure you define and vet your property manager, just like anything else. Your local property manager should have way more resources already in place to make your investment a success, municipal rules and regulation compliance. Our business we do not accept section 8 and we are in different area than the one you are refacing, but I know that a system and team, will be much more effective every-time. I think its important to also consider the condition of the homes as provided to the manager to operate. If your homes are sub par and just meeting basic minimum requirements, you will be capturing equally a lower quality tenant as well. I think the scenario you presented is substantially more complex than we define with the above (3) parameters. I know you may have a different view on this, but after being apart of a $80M+ scattered site single family residential property management company, I can speak from experience that it is substantially much more complex, but alot of the end results are associated with the condition and extent of the renovation. After eating this retail division of property management, we now exclusively only manage Turnkey assets for investors, the purpose here is to eliminate these misc. pitfalls associated with scattered site unique homes, the quality is sometimes not their however, the owner may feel they have something spectacular, we take out the unique element now and apply a uniform system throughout the entire spectrum of Turnkey inventory this enhances performance and value. As I said i think it is much more complex. 

 Jay, thanks for the kind words, looking for a mayorship position in 2018 :) Not certain when those will be coming back, but, in the mean time happy to entertain at anyone of our James Beard Best Chef restaurants, or one of our Michael Simon Top Chef restaurants. Last February was the coldest one in over 100 years, perhaps this year will serve a friendlier February. 

Look forward to meeting in our Awesome CLE!

Tom great point, I think its important to have a focused goal and if the nu,bears don't work they just don't work , move on don't waste your time and get the deal that does hit the numbers. If it doesn't hit the numbers the first time, it will not hit it in the near future most likely. Be honest and stern with yourself and your buying criteria. 

Steve, do not have a lot of 1970's NHL Hickey knowledge, however, looks to me like we had at one point (4) major sports teams :)  The article references cult like followings of major Hockey Teams and Cleveland got a little beat up in this 2013 article. 

Do not forgot about our Arena Football League - Cleveland Gladiators

Why not throw in our current American Hockey League  - Lake Erie Monster

So much for 2013 and the 70's, the next frontier in Cleveland is something unlike anything else before.  We welcome you and look forward to hosting you in the remarkable space, come relax, live, laugh and enjoy the renaissance for yourself.

CLE

 Yes, sounds like you have a descent experience not a stellar one, sometimes you need to crawl before you can walk and with experience you begin to see how important the operator is to the sustainability and viability of your asset. I truly believe the management is the glue that keeps it together, so you want an operator who can give you that in one package. We hear the horror stories everyday here. We actually existed our retail property division in April to a national vendor, this department would take on any homeowner but not any property we were selective, but we were constantly battling massive overhead cost due to the unique qualities and building found at every site, being scattered site with over 700+ doors under management was super complex and required a lot of staff. Now, we do things differently after we exited this company, we exclusively manage assets for our investors that acquire direct from us, we will not take on any outside portfolios, the reason why we do this is that we can control the entire process and place systems that allow us to reduce the administrative burdens commonly associated with management companies. Through our uniform construction material and methodology process, we are able to mitigate lots of risk to the owners, ourselves and tenants, plus we know and the investor knows exactly what goes into the property and why, we can control materials and implement resilient products throughout, everything from paint, flooring, sinks, light fixtures, tile, furnace to hot water heater. Not only are we bringing the homes to a specific high quality standard, which allows us to provide a warranty with the property for maintenance, but the  long term and short term maintenance is mitigated by/through the implementation of uniform resilient product lines. I think actually seeing and meeting the operator you intend on working with and seeing the product goes along way in building/forging good long term relationships.

 Lol, I know, I was just giving Cleveland some moral support :)

Looks like Johnny is back, hope he keeps his nose clean, we will see , I think he will be our 25+ QB in the past 10 yrs. its sick!  Happy to hear that, I don't know when you were here last, I would say its worth checking us out now and seeing all the amazing things going on around town, we are a whole new city in every corner and every aspect.

 Marty, first and foremost congratulations on taking the plunge! Im certain if you have a good experience now, you will continue building your wealth and portfolio. Great advice, eating the operator is hyper critical, you want to see these people, the office they have, the support staff in place, physically see the area and the homes. We have experience with clients that never visit us during their first acquisition, but eventually travel to see us. On the other hand I would say over 70% of our clients do come and visit and want to see the physical home, the process form A-Z, we encourage it and I encourage investors on BP especially first time investors, put boots on the ground, visit the operator and be intrusive.

#TeamTurnkey

 Peter-

Excellent recommendation, I think meeting the people / operators in the respected markets half the battle, this way you can get a real feel for who they are and their operation. Not only meet but see what they do and how they do it, check out the city, learn about the local history and economic conditions.

 Welcome to BP Rafael, I think if you search any question you have, you will find a forum here with an immense amount of information. Place a cohesive plan and strategy to define each type of investment and proceed form there. You have the biggest text book on real estate investing, just waiting for you to open it.