In a perfect world, we could syndicate a multifamily property and then sit back and wait for the checks to roll in. But in the real world, we must oversee the apartment buildings we’ve purchased and make sure they perform according to plan.
What is involved in asset management? What is the best way to communicate with investors? And how does your property manager’s competence impact the amount of work that falls to you?
If you don't do the work right in due diligence, no amount of asset management can make for it. You can't fix something if it's already pretty much unfixable to begin with.
What is Asset Management?
When we buy an asset, there are always going to be problems, but the difference between a property that has problems and a property we don't like, is that the properties we don't like have problems that no asset management can fix. One of the big things for us in the pre-buying phase is finding competent, capable,
experienced property managers that say, We can fix this with this amount of time for this amount of money.
The important thing going into the acquisition is knowing what the problems are and how they can be fixed.
What to Look for in the Acquisition Process
We want to find properties with problems that we can solve, but then the price point needs to reflect that problem so we can create value and make it a better place to live for tenants and a great place for our investors to put their money into.
We want to buy in the right place, in the right city, in the right market, and more importantly, we want to clearly understand what the problem is.
Watch this video for more on asset management.
Want to Learn More?
If passive real estate investment sounds appealing and you're interested in what Nighthawk Equity has to offer, schedule a consultation with us: https://nighthawkequity.com/join
