Ep. 43 Steve Berges: Tips on Selecting A Property Manager

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ServeAttachment.ashxSingle-family investors looking to transition to multi-family investing? It is important to remember that multi-family investing has different rules and procedures than single-family. It is crucial to have an understanding of the dynamics of multi-family markets. While a working knowledge of multi-family markets is vital, even seasoned investors cannot oversee all aspects of property management.

Steve Berges, author of Complete Guide to Buying and
Selling Apartment Buildings
has some tips on transitioning into multi-family markets and, most importantly, on selecting an effective and responsive property manager for your asset. With over $100,000,000 in multi-family transactions under his belt, Steve has the experience and know-how to achieve success in multi-family investing.

  • Value-Play/Value-Add System
    • Property undervalued for certain reasons relative to current market
    • Low-risk investment
    • In/out investment, not long term
  • Multi-Family is More Economical Than Single-Family
    • Multi-family flips still generate occupancy cash-flows
      • 70-80% occupancy compared with the usual 0% of single-family flips
      • Multi-family property should be breaking even, with proper research
    • Lower frequency of transactions per year than single-family
  • Multi-Family Markets are Competitive
    • Recognizing competitive market is important
    • Understanding the dynamics asset values and what drives the value is key
  • 3rd Party Property Managers
    • 50+ units should use property managers
    • more cost-effective to “manage managers” than to assume all responsibilities
    • On-site managers are especially important
  • Be a Strategic Manager/Owner
    • Use good judgment selecting property managers
      • Some may seem professional but may be ineffective
    • Develop close working relationship w/ property managers, but do not over-manage
    • Look for property management firms that specialize in multi-family assets
    • Be patient, do not rush investments

A devoted family man, Steve works with only a small group of partners a year, but he welcomes any investors to contact him with questions, to share interests or even propose investment opportunities!

You can visit his website at www.steveberges.com for even more information and updates!

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